People are usually dejected and saddened when their loan applications are rejected, but most of this sadness comes from not knowing why or how the application was rejected and what could have been done differently. Most personal loans are rejected after scrutiny of the individual’s credit score, etc. but some applications are rejected outright. This outright rejection of loan applications happens when a person applies without being fully eligible / without meeting basic eligibility requirements.
Credit cards are the most flexible (and most expensive) sources of unsecured credit available from banks and lenders, closely followed by personal loans. Unsecured personal loans have no strings attached in terms of collateral, guarantors, etc. and the funds disbursed under these loans can be used for any purpose that the borrower deems fit. The purpose or the end use for the loan amount does not need to be officially recorded by the bank and the borrower can use these funds as per his / her own discretion. There are some minimum requirements for people to be eligible to borrow personal loans from SBI, however.
If a loan application has been rejected before scrutiny of credit scores etc. it may be because the applicant did not meet the minimum eligibility requirements, which are listed below:
SBI has also mentioned a list of basic documentation that’s required to be submitted by applicants seeking personal loans. The bank may or may not request additional documents depending on the category of personal loan that’s been applied under, and the profile of the borrower on an individual basis.
Given below is a list of documents that’s required for personal loan applications from SBI:
The bank reserves its right to modify or change the eligibility requirements on a case by case basis, as not all loan applicants are the same and each has a different level of risk associated with the application. The loan amount required, tenure chosen, etc. could have an impact on the documents required to be submitted, etc. as the bank will require full clarity on the prospective borrower.
If the applicant is self-employed and does not draw a steady salary, the bank may require the submission of income proofs for the last year / quarter / specified time period in order to determine the repayment capability of the particular borrower.
Those who wish to borrow but don’t know their exact eligibility for a particular loan from SBI can use the eligibility calculator on BankBazaar.com.
Credit cards are the most flexible (and most expensive) sources of unsecured credit available from banks and lenders, closely followed by personal loans. Unsecured personal loans have no strings attached in terms of collateral, guarantors, etc. and the funds disbursed under these loans can be used for any purpose that the borrower deems fit. The purpose or the end use for the loan amount does not need to be officially recorded by the bank and the borrower can use these funds as per his / her own discretion. There are some minimum requirements for people to be eligible to borrow personal loans from SBI, however.
If a loan application has been rejected before scrutiny of credit scores etc. it may be because the applicant did not meet the minimum eligibility requirements, which are listed below:
- Age: Applicants who wish to borrow money from SBI through a personal loan must be at least 21 years old, and no older than 58 years.
- Employment requirements: In order to have a loan application accepted by SBI, applicants must be gainfully employed at a reputable company / corporate / business firm for at least 1 full year, and have a total of at least 2 years of work experience.
- Income requirements: Applicants who want to borrow funds from SBI under its personal loan category must have a fixed monthly income of at least Rs.10,000 if they reside in rural or semi-urban areas, and a fixed monthly income of at least Rs.24,000 if they reside in metro cities and urban areas. This monthly income requirement is for salaried employees / professionals who get paid a fixed amount monthly. For self-employed persons, the income requirement is based on the quantum of finance sought.
- SBI Xpress Credit Loan.
- SBI Saral Personal Loan.
- SBI Pension Loan.
- SBI Festival Loans.
SBI has also mentioned a list of basic documentation that’s required to be submitted by applicants seeking personal loans. The bank may or may not request additional documents depending on the category of personal loan that’s been applied under, and the profile of the borrower on an individual basis.
Given below is a list of documents that’s required for personal loan applications from SBI:
- Identity proof: A photographic proof of identity is required when applying for personal loans. This document could be any official proof of identity issued by a recognized and competent authority such as a driving license, passport, Aadhaar Card, voter’s ID, etc. A copy of this should be submitted along with the personal loan application or when requested by the bank.
- Address proof: A copy of a document that contains the applicant’s name and current address must also be submitted. If the applicant is currently staying at a rented or temporary accommodation, the bank may or may not request an address proof of the permanent address of the applicant depending on the type of loan, borrower profile, etc.
- Passport sized photographs: The bank will also ask the applicant to submit a few passport sized photographs to be used for its internal records and other purposes.
- Salary slips: The bank will request the last salary slip (or the last 3 salary slips, depending on the case) from salaried loan applicants. This serves to confirm the applicant’s claimed salary and thus the repayment capacity of the applicant. A recent Form 16 and up-to-date salary certificate will also be required in most cases. It’s useful to keep these documents on hand.
- Passbook / bank statements: For non-salaried employees who are self-employed, the bank will require the submission of a copy of the Passbook with detailed information of transactions for the last 6 months, and bank statements for 3 months prior to application. The bank may also require this from salaried applicants depending on the case and type of loan sought. These documents may not be necessary if the applicant holds his / her primary account in SBI itself, as the bank will merely require a consent to pull the relevant information.
The bank reserves its right to modify or change the eligibility requirements on a case by case basis, as not all loan applicants are the same and each has a different level of risk associated with the application. The loan amount required, tenure chosen, etc. could have an impact on the documents required to be submitted, etc. as the bank will require full clarity on the prospective borrower.
If the applicant is self-employed and does not draw a steady salary, the bank may require the submission of income proofs for the last year / quarter / specified time period in order to determine the repayment capability of the particular borrower.
Those who wish to borrow but don’t know their exact eligibility for a particular loan from SBI can use the eligibility calculator on BankBazaar.com.