Karur Vysya (KVB) Personal Loan Eligibility

Factors affecting Eligibility of Karur Vysya Bank Personal Loans

1. Income - Your level of income dictates how much you will be able to pay back as EMIs, this directly affects the total loan amount that can be sanctioned. Hence, the higher your income, the more likely you are to be approved for a personal loan from Karur Vysya Bank.
2. City of residence - It's far easier to get a loan sanctioned in a metro city like Bangalore, Chennai, Mumbai or Delhi then it is in other cities.
3. Age - If you're too young, you're a risky candidate as young salaried people shift jobs often to exploit opportunities, but there's a chance that one job shift might fail and leave you unable to repay EMIs.
4. Type of employment - Salaried individuals and salaried get regular incomes on fixed dates and can have EMIs due deducted directly from their salary accounts. Self-employed people must rely on market conditions and the demand for their products in order to earn an income. Karur Vysya Bank also has different securities requirements for salaried and self-employed persons.
5. Residence type - Applicants who live in a residence that's owned by them are more likely to get a loan approved, and on better terms. This because there's no part of their income being spent on rent, and the bank has a location owned by the applicant in which to locate him/her. People living in rented houses must pay an amount of their salary as rent, lowering the disposable income left over to pay EMIs. Also, it's easier for a person living in a rented place to abscond in case they feel they cannot keep up with EMI payments.
6. Duration of residence in application location - How long you've been living and working in the location from which you're applying for a loan has a huge impact on your eligibility. The longer you've been living in a certain place, the higher are the chances of getting a personal loan approved on your terms. Karur Vysya Bank will give more preference to applicants who've lived in the city for longer.
7. Securities - Karur Vysya Bank requires securities and guarantors against their personal loans. Applicants holding securities like NSCs, KVPs, IVPs, RBI Bonds, LIC policies, etc. are more eligible than those who do not. Guarantors must be people with a high enough net worth, or a colleague drawing the same income, to be accepted by the bank.

How to Increase Karur Vysya Bank Personal Loan Eligibility?

1. Maintain a clean credit history - Ensure that you always clear your debt, on time and on the terms you've agreed on with the lender. This increases your CIBIL score, and eligibility.
2. Lower EMIs on existing loans - A large factor that affects your eligibility is whether you already have a loan on your name for which you're making EMI payments. It's advised to take loans for longer tenures, as the EMIs paid monthly will be lower, thus showing that you have more funds to pay your Karur Vysya Bank personal loan back with.
3. Prepayment - Paying off your existing loans before taking a new one is highly advised. A lump sum prepayment will settle your existing loan, increasing your eligibility for your new Karur Vysya Bank personal loan.
4. Maintain a good mix of secured and unsecured loans - Secured loans are looked at more favourably.
5. Don't over leverage yourself - Applying for too many loans and paying off 2-3 EMIs every month can take its toll on your financial (and mental) health.

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