IDBI Bank is a government-owned financial services bank headquartered in Mumbai. Established in 1964, IDBI Bank was previously known as the Industrial Development Bank of India. At present, it is the tenth largest development bank in the world in terms of reach with over 1,800 branches including one international branch in Dubai, over 1,380 centres, and more than 3350 ATMs. IDBI Bank offers various kinds of financial services and products to cater to different needs of its customers. One of the most popular loans offered by the IDBI bank is the IDBI Bank personal loan.
A personal loan is a multipurpose loan that helps people meet their needs at the time of a financial crisis. The main characteristic of a personal loan offered by a bank is that it is not secured by collateral or guarantor. “Collateral” here means something of value that the lender can repossess if the borrower does not repay the loan as per the agreed terms. In most of the cases, personal loans are backed only by the borrower’s promise to repay and for this reason, a personal loan is also known as a “signature loan” or “unsecured loan”.
IDBI Bank personal loan is offered to its customers to meet the unexpected financial exigencies or occasions such as a wedding, repair/renovation of a house, payment of urgent medical expenses, or domestic or overseas travel. IDBI Bank personal loan has something for every customer’s need. At times, a personal loan comes in handy to arrange Earnest Money to apply for a residential plot (or house) or to manage Margin Money funding to avail home loan (or loan against property).
The three different variants of the IDBI Bank personal loan are:
- Personal loan to salaried or self-employed individuals, and pensioners
- Pension account with in-built overdraft facility to IDBI Bank pensioners
- Salary account with in-built overdraft facility to salaried individuals
IDBI Bank personal loan eligibility criteria for salaried/ pensioners/ customers maintaining salary account/ pension account with IDBI Bank:
- All IDBI salaried customers maintaining salary account with IDBI Bank.
- All pensioners/family pensioners from State or Central Government Departments, PSU companies and State or Central Government promoted/sponsored entities or undertaking whose pension is credited to savings bank account with IDBI Bank.
- Retired staff of IDBI Bank.
- The minimum age limit is 22 years and maximum age limit is 60 years for salaried individuals.
- The minimum monthly income should be at least Rs. 20,000 per month and maximum monthly income must be Rs. 10 lakh.
IDBI Bank personal loan eligibility criteria for salaried customers and self-employed professionals (with or without existing liability relationship with IDBI Bank):
Under this category, the bank has laid two different eligibility criteria.
- Confirmed employees from departments and institutions promoted/sponsored by State and Central government, the three armed services: with or without an existing relationship but satisfying the minimum income laid on the norms of IDBI Bank are eligible.
- Self-employed professionals having liability relationship with IDBI Bank for more than one year and satisfying the minimum income norms are also eligible for the IDBI personal loan.
- The minimum age limit for self-employed professionals is 22 years and the maximum is 60 years.
- The individual must be earning minimum of Rs. 25,000 and a maximum of Rs 5 lakh per month from his/her business.
IDBI Bank personal loan eligibility criteria for salaried individuals and self-employed professionals having asset relationship:
- Full disbursed cases having paid a minimum 6 EMIs and a total clean repayment track record are eligible to avail the personal loan from IDBI Bank.
- The minimum age limit is 22 years and the maximum is 60 years.
- Salaried individuals must be earning a minimum of Rs. 25,000 and a maximum of Rs. 10 lakh salary per month.
- Self-employed individuals must be earning a minimum of Rs. 20,000 and a maximum of Rs 5 lakh per month from his/her business.
Apart from your monthly income a lot of factors affect your IDBI Bank personal loan eligibility. Banks and Non-Banking Financial Companies (NBFC) consider a lot of aspects before giving you a sanction letter for your personal loan application in India. Some of those factors are discussed here:
Employment Stability: The employment stability of the borrower is a significant eligibility criterion to avail an IDBI Bank personal loan. According to most banks in India, a salaried person with a minimum of 2 years of professional service with 1 year in the current profession and a self-employed person with a minimum of 5 years of total earning tenure with at least 2 years in the current profession is eligible for a personal loan. However, these criteria can vary slightly depending on other factors that the lender shall decide.
Financial Condition: The current and previous financial condition of the borrower is also an important consideration while approving a personal loan. Minimum levels of income have been specified by different banks and each one of them may vary slightly. The financial condition basically determines the repayment capacity of the individual and hence, the lender banks take maximum cognizance of this aspect while giving an unsecured personal loan to an applicant. The amount of loan that one is eligible for is also decided based on this criterion.
- Credit Rating: The credit history of the applicant is another aspect that the bank eagerly looks into while approving a personal loan. Delays and defaults in paying EMIs of other loans, credit card dues or any other civil issues can lower the credit rating. This severely hits the borrowers’ eligibility for all kinds of loans including personal loans from banks and other financial institutions. A good credit rating, on the other hand, enhances the chances of a borrower getting a personal loan approval.
Along with loan application form, a personal loan applicant needs to submit identity proof, residence proof, latest salary slip, Form 16, and last 6 month’s bank statements.
The loan application needs to be duly filled and signed for submission. In case of an uncertainty, the bank can further demand to see other documents as well. Once the bank is satisfied with the documents provided by the applicant, it approves the loan and disburses the loan amount into the bank account of the borrower.