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DCB Bank Personal Loan Eligibility Criteria

Dcb Bank Personal Loan Eligibility

Before applying for a personal loan from DCB bank, it is crucial to know the various eligibility criteria. Read on to find out what these are:

  • The loan is available for salaried Individuals working in private/public limited companies, government employee, multinational corporations, reputed partnership firms and other concerns, receiving a regular salary.
  • Self-employed professionals, including chartered accountants, cost work accountants, doctors, engineers, company secretaries, architects etc. are also eligible.
  • Self-employed non-professionals like traders, merchants, consultants etc. can also apply.
  • Proprietors, partners & directors of Pvt. Ltd. Companies.
  • Minimum work experience should be 3 years for salaried and self-employed individuals.

Age Criteria:

  • A salaried individual aged between 25-60 years 
  • A self-employed individual aged between 25-65 years

Reference Criteria:

An individual applicant needs to provide 2 references for a personal loan:

For Salaried individuals - references can include a colleague, friend and relative and:

  • Cannot be a blood relative
  • Cannot be residing at the same address

For Self-employed individuals - references can include suppliers, customers and peers.

Employment Type: DCB bank will verify an individual’s employment category and whether he/she is salaried or self-employed. It also checks the company and sector in which the applicant is working. The number of years of experience is also considered to verify job and income stability.

Credit Score: An individual’s credit track record and credit-using tendency gets captured in the credit score. Banks use this as a reference to check past credit behaviour, and hence, credit score becomes an essential factor which checking one’s eligibility for a personal loan. While checking eligibility for a personal loan, DCB bank considers the applicant’s credit report, including all previously sourced loans and repayment track record of all kinds of debt.

A higher credit score means improved chances of your loan application being approved. However, a lower credit score will significantly reduce your eligibility to get a personal loan. Even if you’re sanctioned a personal loan with a low credit score, you will likely be charged steep interest rates. A minimum credit score of 650 is required to be eligible for a personal loan from DCB Bank.

How Does Credit Score Affect Your Eligibility for a Citibank Personal Loan?

Your credit score is a crucial element considered while applying for loans and credit cards. The lender first checks your credit score when submitting an application form for a personal loan. If you have a good credit score, which is generally above 750, lenders will proceed to the verification stage before disbursing the loan amount. In case you have a poor credit score, lenders may not consider your application. Thus, a credit score is a deciding factor while deciding on your eligibility for and granting personal loans.

Overview of Personal Loans from DCB Bank

DCB Bank offers personal loans up to a maximum of Rs. 5 lakhs to salaried individuals. The loan can be used to meet a variety of expenses like debt consolidation, vacation, medical emergency, wedding, etc. DCB Bank offers multiple banking products and services to individuals, small and medium businesses, corporates, etc. The personal loan provided by the bank comes at an attractive interest rate and flexible loan tenure.

DCB Bank Personal Loan – Salient Features

  • Interest rate – Differs across applicants and depends on the applicant’s credit profile. DCB Bank offers competitive personal loan interest rates that vary from applicant to applicant depending on the profile and the desired loan parameters. Key factors which may affect the interest rate applicable to a personal loan are:
    • Monthly income
    • Repayment history and credit score
    • Amount of monthly fixed obligations
  • Credit utilisation ratio
  • Loan Amount – Minimum Rs. 1 lakh – maximum up to Rs. 5 lakhs
  • Eligible Applicants - Salaried Individuals, self-employed individuals
  • Eligible Applicant Age - 25 years to 60 years
  • Processing Fees - Up to 3% of loan sanctioned
  • Loan Tenure - Up to 60 months
  • Collateral - Not Required
  • Mode of Repayment - Loan EMIs can be paid via Electronic Clearance System (ECS), Standing Instruction (SI), National Automated Clearing House (NACH) or Post Dated Cheques (PDC)s.
  • Currently, the bank offers personal loans only in Delhi NCR, Hyderabad and Greater Mumbai.

DCB Bank Personal Loan Documents

Before applying for a personal loan, make sure to keep all the required documents ready. Here is all you need to know about personal loan documentation as required by DCB bank:

For Salaried Individuals:

  • Application Form
  • 2 Passport size photos
  • Salary Slips for the last 3 months
  • Identity Proof PAN Card or Driving License or Voter ID Card or Adhaar Card, etc.
  • Residence Proof (Driving License/Voter ID Card/Adhaar card, etc.)
  • Last 3 months Bank Statements
  • Employment Proof
  • Signature Proof

For Self-employed Individuals:

  • Loan Application Form
  • 2 Passport size photos
  • Identity Proof PAN Card or Driving License or Voter ID Card or Adhaar Card, etc.
  • Office Residence Proof
  • Income Proof: Audited financials for the last 2 years
  • Last 6 months Bank Statements
  • Employment Proof
  • Signature Proof

DCB Bank Personal Loan Fees

Here are the fee details for DCB bank’s loan:

Category

Charges

Processing Fee (Non-Refundable)

Up to 3% of the personal loan value

Prepayment Charges

Up to 5% of the principal outstanding

Collection Charges (Applicable in cases of default)

Rs. 100 per call and Rs. 250 per visit for recovery of loan dues

Penal Interest

3% per month of the overdue amount due to delay in payment of interest/ principal

Cheque /ECS Swap Charge

Rs. 500 per event

Cheque Bounce Charge

Rs. 500 per event

All About Personal Loan Eligibility Calculator

The personal loan eligibility calculator is an easy-to-use tool that clarifies the loan amount eligibility for various interest rates and loan tenure as per individual requirements. Getting a personal loan easily can be tricky, especially when the applicant is not entirely sure about his/her eligibility. If you wish to apply for a higher amount but do not have a strong credit history, then getting the required loan amount may be difficult. This is where a personal loan eligibility calculator can prove to be helpful.

Personal loan eligibility can be calculated using your monthly income, EMIs, and the category of organisation you are working for. It may also require your total work experience. Once all these essential factors are updated, the calculator helps ascertain your eligibility for the personal loan amount you wish to apply for. It gives you the maximum personal loan amount that you can avail of based on the maximum EMI you will be able to pay.

Before applying for a personal loan, make sure to check your eligibility by using a personal loan eligibility calculator. This will also save you from a potential rejection of application which can hurt your credit score.

Ways to Improve Personal Loan eligibility

Multiple factors go into determining your loan eligibility. Some may be in your favour, and some could result in lower loan eligibility. However, there are also a few ways to improve your chances of approval for a personal loan. Here are a few helpful tips to consider:

  • Pay Loan EMIs and Credit Card Dues on Time: Before applying for a personal loan, ensure that all your credit card dues and other loan EMIs are paid as per the due date. Regular repayment will help in improving your credit score and improve the chances of personal loan approval.
  • Minimise Existing Debt: Minimising outstanding debt will lessen the burden of repayment of the same. This can free up a significant portion of your income which can then be used to service new debt. It will also improve your chances of easy approval of a personal loan.
  • Reduce Credit Card Usage: Reducing credit card usage for less than 30% of your spending can significantly improve your credit score. This will indicate responsible credit behaviour and thereby improve your eligibility for a personal loan.
  • Use a Co-Applicant: Applying for a personal loan along with a co-applicant can also help in improving your loan eligibility. You can apply along with a family member, friend, co-worker, etc. to enhance the chances of loan approval. Make sure to check the bank’s norms for co-applicant before applying for a personal loan.

Critical Aspects to Consider While Applying for a Personal Loan

  • Before applying for a personal loan, make sure that you meet the bank’s eligibility criteria.
  • Make sure to check and submit all the required documents appropriately.
  • A high credit score is essential, and it can translate into immediate personal loan approval. Hence, maintain one at all times.
  • All your fixed obligations, including EMIs of ongoing loans or credit card obligations, should not take up the majority of your monthly income.
  • Avoid multiple loan applications at the same time as it may make you look credit hungry.

Overview of DCB Bank

DCB bank is a renowned bank in India which offers unsecured credit facility at reasonable interest rates. The bank also provides flexible loan tenure options to its customers. The personal loan facility can help individuals meet various expenses such as marriage, travelling, medical emergencies, etc.

FAQs – Personal loan Eligibility – DCB Bank

1. How do I improve my personal loan eligibility?

Here are some ways in which you can quickly improve your loan eligibility:

  • Pay off all running debts. If that isn’t possible, try to reduce outstanding debts.
  • Pay your EMIs on time to help improve credit history and get a better interest rate deal from banks along with a higher loan amount.
  • Transfer any existing high-interest loans to a lower interest rate to reduce the EMI burden.
  • Make use of a personal loan eligibility calculator to assess your chances of getting a desired personal loan amount.

2. What is the timeline that DCB bank takes to approve and disburse a personal loan?

DCB bank takes up to 3-4 working days to process an application and validate documents before disbursing a personal loan.

3. What is the amount of personal loan that I can get from DCB bank?

DCB Bank offers a minimum personal loan amount of Rs. 1 lakh and a maximum of Rs. 5 lakhs to any qualifying and eligible applicant.

4. What are the processing fees on personal loans charged by DCB bank?

DCB Bank charges 2-3% of the personal loan value as processing fees. This specific fee amount is communicated to the applicant via the loan agreement.

5. Is it possible to foreclose my loan account with DCB bank?

Yes, you can choose to foreclose your loan account with DCB Bank once you have completed payment of a minimum of 12 EMIs. Foreclosure charges will be applicable as per the loan agreement.

6. What is the repayment tenure offered by DCB Bank on personal loans?

DCB Bank has a maximum loan tenure of 5 years on personal loans.

7. What is the interest rate charged by DCB Bank on personal loans?

The interest rate charged by DCB Bank on personal loans is not fixed. It depends on the applicant’s profile.

8. What are the prepayment charges applicable on DCB Bank personal loan?

The prepayment charges applicable on DCB Bank personal loan are approximately 5% of the outstanding principal amount.

9. How do I calculate the EMIs on my loan from DCB Bank?

You can use an online personal loan EMI calculator to know the exact EMI amount on your loan from DCB Bank.

10. What is the customer care number of DCB Bank?

The customer care numbers of DCB Bank are 1800-123-5363 and 1800-209-5363. Both these are toll-free.

11. Will I have to offer collateral for availing a personal loan from DCB Bank?

No, you don’t need any collateral or security for availing of a personal loan from DCB Bank.

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