Dhanlaxmi Bank Personal Loan Eligibility

To avail Personal Loan from Dhanlaxmi Bank, one must meet the following eligibility criteria:

For salaried

For self-employed

Dhanlaxmi Bank Personal Loan comes with the following features and benefits:

List of documents required and accepted by Dhanlaxmi Bank for its Personal Loan approval are:

Dhanlaxmi Bank has a streamlined and well-structured process to check and approve personal loans. The personal loans approved by Dhanlaxmi Bank are based on the credit profile, financial position of the loan applicant, along with other parameters.

List of factors that affect Dhanlaxmi Bank Personal Loan Eligibility are discussed below:

Credit Score - The first and foremost factor that affects Dhanlaxmi Bank Personal Loan eligibility is the credit score of the applicant. As personal loan comes without any collateral security, a good credit score is paramount for approval of personal loan. Credit score is the indicator of the credit worthiness of the applicant. Thus, it helps lending institutions to evaluate the potential risk posed by lending money to the particular customer and thereby reduce their losses due to bad debt. Credit Score is rated on the scale of 300 to 900 points. 300 shows the minimum whereas, 900 points depict the maximum credit worthiness. Lending institutions generally accept a credit score of 750 and above.

Existing Debts: The number of debts and obligations that a person stands at a point of time can affect his/her chances of getting a personal loan approval. But in case the applicant has a  high disposable income, high value of debts will no longer prove to be a hindrance provided there are no signs of delays and defaults in repaying ongoing loans.

Salary/ Income: Applicant who has a high disposable income, either through a fat salary cheque or though profitable business have greater prospects of getting a personal loan as against those who have smaller monthly inflows. Dhanlaxmi Bank approves a personal loan application if a salaried individual draws minimum of 35,000 per month and a self-employed earns a minimum of 1,80,000 per annum.

Age: The eligibility criteria of a lending institution hugely consider age as a factor for advancing loan. It helps the lender calculate the number of productive years remaining in a person's life and thus mitigate their losses due to bad debt. A person who is young and has just entered working life is more likely to get a personal loan approved than those who are nearing retirement. Applicants who are nearing retirement can enjoy a repayment term of only up to the number of years left in retirement.

Current Employer: The market worth of the current employer is as much important as the credit standing of the prospective borrower. Permanent employees of established private sector companies and those holding jobs in government departments are more preferred for a personal loan.

Job Continuity: For being eligible for a personal loan from Dhanlaxmi Bank, the applicant must be in a stable job or business. A salaried individual must be in the same job for a minimum of 2 years, whereas, a self-employed must be in the same business/ profession for at least 4 years.

Banking Health and History: The bank will track the borrower's banking history for a relatively long period of time. Applicants who show no signs of default and delays in EMI payments are more likely to get their personal loan approved. The bank will check the repayment history of all loan accounts and credit cards active under the applicant's name.

Co-applicant: The presence of co-applicants can prove to be a boon for the main applicant. The co-applicant, especially an earning spouse or child increases the loan eligibility manifold.

A personal loan is an unsecured loan, Dhanlaxmi Bank thus does not ask for a collateral security. But high on all parameters of eligibility is must.

One can improve the Dhanlaxmi Bank Personal Loan eligibility through:

Maintain Good Banking History: A good banking health a history is must. There should be no delay in payments, either of ongoing loans or credit card dues. Also, cheque bounce charges, late payment penalties and other such penalties that reflect in the account statement attract a negative score.

Co-applicants: Presence of co-applicants proves really helpful for increasing personal loan eligibility. The applicant must be a close relative and earning independently.

Good Credit Score: The credit score is a numerical value which is calculated using an algorithm considering five parameters - individual's payment history, the credit utilization ratio, credit history, most recent credits and loan repayments, and the overall capacity. If all parameters are taken care of independently, the credit score is bound to be high.

Job Stability: Applicant should not switch/ change jobs too often. Dhanlaxmi Bank requires a mandatory job continuation of 2 years for salaried employees and 4 years for self-employed.

Higher Income: A higher income will ensure a higher amount of personal loan. Salaried employee can attach proofs of variable incentives, if any, whereas, a self-employed can attach proofs of income from other sources like rental income from commercial or residential properties, interest from securities, etc. to get a loan approval for personal loan.

Opt for longer tenures: The personal loan eligibility increases when you opt for a longer tenure. This also reduces your monthly EMI and thus makes repayment easy and comfortable.