Federal Bank Personal Loan Eligibility 

The first step for applying for any bank's Personal Loan is to make sure that you satisfy the eligibility criteria of the bank. The eligibility criteria depend upon the age, residency, income, and other factors that the bank finds necessary.

Please find the eligibility criteria for Federal Bank Personal Loan mentioned below:

• Residency: Federal Bank Personal Loans are available only for Indian Nationals. Personal Loans for NRIs are also available.
• Occupation: The occupational eligibility depends on the type of personal loan. In the case of FedPremia, the loan is only available for salaried individuals, while the other loans can be availed by both self-employed and salaried employees.

Please find the main features of the Personal Loan below:

Applying for a Federal Bank Personal Loan is relatively straightforward and in many cases, applicants receive the funds they apply for. However, rejections are also common due to the ineligibility of applicants.

Here are some of the factors that may affect your eligibility and by extension, your ability to access this loan:

• Age: Your current age is a major factor that will always be considered during the loan process. For starters, the Federal Bank does not issue Personal Loans to applicants who are under 21 or 60 years of age. But this is not all though. Another thing to keep in mind is how old you will be at the time the loan will mature. If you will exceed 60 years before the loan matures, your application will be denied.
• Income: Your income is another factor that may make or mar your application. Remember that you will repay the loan from your monthly income, and if your income is not large enough to cover the EMI payment, you will not be given. The minimum monthly income acceptable is 25,000. If the monthly EMI charge on the loan exceeds 60% of your monthly income, your request will most likely be turned down.
• Employer: The status of your employer is another factor the Federal Bank will consider. Government agencies are highly ranked as top employers and so are blue-chip companies with a very strong network and financial standing. The status of your employer is not a major factor but one that will still be considered by the bank before issuing you a loan.
• Work experience with current employer: How long have you worked with your current employer? This is one piece of information that will be asked of you. If you have worked for your employer for 3 years and above then that is good enough. If you have worked with the same employer for less than 3 years Federal Bank may not give you the loan.
• Other existing loans: Debt accumulation will not serve your best interest when applying for this loan or for any other type of loan for that matter. Having an existing loan with this lender or with a different lender may not be a bad thing, but if the debt is huge and takes a large chunk of your income as repayment, then you may not be issued this loan.
• Documents: Submitting an invalid, outdated, or fictitious document will lead to the outright cancellation of your application. And what's worse is that you may be prosecuted or prevented from ever applying ever again.
• Credit score: Your credit score is a very important factor in your Personal Loan application. A credit score is calculated taking all your prior credits into consideration. A good credit score can display a good handling of finances and good behavior towards your credits. A credit score higher than 750 is required by the Federal Bank for Personal Loan approval.

Now that you know more about some of the factors that may affect your eligibility for a personal loan, let's discuss some of the tips to improve them to make you creditworthy and less of a financial risk.

• Obtain your credit report: It is always a wise choice to obtain your credit report card and study it carefully before submitting a loan application to Federal Bank. Obtain your credit report and check for errors in your name, address, or erroneous entries. If you find any errors in your report, endeavor to correct them first before you apply for the loan. If you also notice that a debt you had previously cleared is still showing as unpaid, contact the creditor and have it corrected.
• Pay your debt: If you have debts unpaid, do well to pay them up. Lenders find huge debts very unattractive and may disqualify you on this basis alone. If the debt is not one that you can settle at once, enter into an agreement with your creditor(s) to repay in installments. The more you pay up, the less indebted you will be and the better your credit score will be too.
• Include your earned allowances: When providing details regarding your income make sure you include your allowances as well as this will increase your income eligibility further. If you can, implore your company accountant to pay your allowances into your salary account if this is not the case, but if it is paid separately, keep the allowance slips to serve as a piece of evidence.
• Amke joint applications: Submitting a joint application is your best bet if you do not earn a very large income. If you are not able to increase your income (which is hugely unlikely), consider applying jointly with your spouse. Joint applications are great because just like paid allowances, they improve your income eligibility and brighten your chances of getting the loan amount you want.
• Infuse other income sources: If you have an extra source of income different from your paid job, make sure you factor that into your income computation when filling out the application form. Lenders who know that a borrower has other income sources often give them loans because they know that they won't default at the end of the day.
• Verify your documents: Before you submit your application alongside your documents, make sure you verify the documents and the information you have provided. Your details and documents must correspond otherwise, your application will be denied. Your address must match the address in your KYC documents. The same is applicable to your age and your income details. Do not be in a hurry to submit the application. If you must apply for a loan, do it right the first time.
• Apply early: Applying for a Personal Loan early enough is also advisable. This is because the closer you get to the age of 60 years; the more difficult it will be to access loans. If you plan to apply for a maximum loan term of 48 months, make sure you apply for it at least before you are 56 years of age. This will ensure that you do not exceed the maximum age acceptable.
• Go for a higher tenure: A higher tenure often means a lower EMI. A lower EMI will place a lesser burden on your finances. This way, the bank also has more trust factor in your repayment capabilities. A higher tenure also means a longer time to repay the loan. This further helps improve your chances of loan approval.