HDFC Personal Loan Eligibility – Salaried & Self-Employed

HDFC Personal Loan Eligibility – Salaried & Self-Employed
In order to borrow a personal loan from HDFC Bank, one must first be sure that they are eligible for the same. Basic eligibility criteria not being met has been the cause for many personal loan applications being directly rejected.
Personal loans are the most flexible forms of credit offered by banks and lenders after credit cards. HDFC Bank, like other banks, does not require a reason as to why you require the funds made available by a personal loan. If you (the applicant) meet the eligibility criteria and submit the relevant documents, you can avail a HDFC Personal Loan.
Usually, loan applications are rejected after thorough scrutiny of the loan requested and the borrower's profile. Most loan applications are rejected due to a low credit score or credit report, but a surprisingly large number of applications are rejected without any investigation or scrutiny. This is just because the applicant did not meet the basic eligibility criteria and was hence not eligible to borrow from HDFC Bank.
HDFC Bank has clearly outlined its basic eligibility criteria for personal loans, and only considers applications submitted by those individuals who satisfy the following requirements:
Age: Personal loan applicants must be over the age of 21, and under the age of 60 at the time of applying for a personal loan from HDFC Bank.
Employment requirements: Applicants applying for a personal loan from HDFC Bank must have at least 2 years of documented work experience, and at least 1 full year completed with the current employer. Loans are not given to those who have no source of regular income, except in the case of businessmen who are able to prove their creditworthiness and repayment capacity.
Income requirements: Salaried individuals / professionals / etc. who are paid a fixed amount each month need to be earning a net income of at least Rs.12,000 per month. If the applicant resides in Delhi, Mumbai, Pune, Hyderabad, Ahmedabad, Cochin, Bangalore, or Chennai, the minimum monthly net income requirement is Rs.15,000.
This the bare basic eligibility criteria put forth by HDFC Bank for its personal loans. Anyone failing to meet any of the above criteria will not be granted a loan, and will have their application instantly rejected without any scrutiny of creditworthiness, etc.
That being said, the income and employment requirements may be higher (but not lower) depending on the loan amount requested, tenure applied for, and other factors.
In addition to this, another set of basic requirements that needs to be met by applicants is the physical possession of certain documents, which are:
Identity proof: A photographic proof of identity is the first and most basic requirement before apply for personal loan. This could be any authorized and recognized document that affirms the identity of the signatory, such as a passport, driving license, and voter's ID, Aadhaar Card, etc.
Address proof: Proof of the applicant's address is another basic requirement as communicated by HDFC and other banks. If the applicant is currently residing at a temporary accommodation, the bank may or may not request permanent address proof depending on the duration of the applicant's status as resident at the temporary / rented accommodation.
Salary slips: For salaried employees, the bank will request the last salary slip (or the last 3 salary slips) and a dated salary certificate with the most current Form 16. The bank may require you to submit additional documents as required with regard to your salary or income.
Bank statements / passbook: HDFC bank also requires the submission of banks statements for the last 3 months, and a copy of the passbook that clarifies and shows details of the last 6 months of account activity. If the applicant is a customer of HDFC Bank / holds the primary account with HDFC Bank, then this document may not be necessary as the bank will already have these details, and will simply request the applicant to sign a release that allows the bank to pull relevant information for the purposes of assessing a personal loan application.
The fulfilment of these criteria will not guarantee that your loan will be approved, just that it will be taken into consideration by the bank and will not be rejected outright.
It should also be noted that the bank could revise its eligibility and documentation requirements depending on the loan amount requested and the applicant's credit score / perceived repayment capacity.
There are also different requirements for those who run businesses and other entrepreneurial ventures wherein a steady fixed salary is not being drawn. The primary difference in eligibility / documentation between salaried and self-employed applicants is that the latter will have to submit proof of profit made in the last quarter / year / previous years as a proof of ability to repay. This is in addition to the bank statements and passbook copies that will be expected as a standard requirement from HDFC and all other banks. Applications sent in by self-employed people are also scrutinized more carefully.