Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.
20 JUNE, 2022
A personal loan is an unsecured loan that you can avail from Kotak Mahindra Bank within hours. As it is unsecured, you need not submit any collateral or look for a security or guarantor to get the loan amount. Its interest rates are much lower than credit cards, while the application process can be done within a few minutes. Moreover, if you furnish the updated documents with the application form, your loan is approved within a few hours. This means that you can get a personal loan for any emergency without waiting for days to get funds. Also, personal loans have no end use and you can use the loan amount for any need, be it for medical emergencies, weddings, debt consolidation, home renovation, higher education, travel, etc.
However, the only bottleneck that can keep you from getting a personal loan is its eligibility. You must fulfil the eligibility criteria while availing a personal loan from Kotak.
Eligibility criteria for a personal loan
You must be between the age group of 21 to 60 years to avail a personal loan. Applicants outside this age bracket usually do not have a steady flow of income, which makes them ineligible for the loan. Also, lenders also consider your age to determine your loan amount. Younger applicants have more working years and can repay a higher loan amount as per the lender.
Your income also impacts your eligibility. To avail a personal loan from Kotak Mahindra bank, you need to have a minimum income limit as set by the bank. This limit can be dependent on your occupation and job profile. The higher income you earn, the higher loan amount you can avail. Lenders consider the monthly income to ensure that the applicant has sufficient income to repay the loan.
The credit score defines your credibility and repayment capacity. If you have a credit score below 700, your loan application can be rejected. On the other hand, you can get a higher loan amount and lower interest rates with a high credit score. Credit bureaus determine your credit score by considering your annual income, active loan accounts, history of loan repayments and credit utilisation ratio.
City of residence
Your location can also impact your personal loan eligibility. If you are living in a metro or Tier-I city, you usually incur higher expenses. Therefore, lenders can have different eligibility for applicants living in different locations.
Your employment type and employer reputation can affect your eligibility and interest rate. Typically, salaried employees have easier eligibility requirements as they are believed to have a steady source of income. Similarly, if employed with a reputed organisation like an MNC, PSU, or a government company, you can get approval faster and even higher loan amount. Freelancers or entrepreneurs of a start-up usually have low eligibility.
Your personal loan eligibility can determine your loan approval, interest rates and even loan amount. Therefore, before you apply for personal loan, ensure to check your eligibility and then proceed.
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