Eligibility Criteria And Advantages Of Personal Loans For Women

Personal Loan For Women

Most financial institutions offer Personal Loans to women to address their personal needs, such as marriage, education, travel, and medical treatment for themselves. Many institutions that do not provide Personal Loans, especially for women, offer regular Personal Loans to address their requirements. 

A few lenders offer instant Personal Loans to women with good credit scores. The money is immediately disbursed to their account after approving their application. The lenders look at the applicant’s age, income source, job profile, and credit score before sanctioning the loan. Hence, getting a loan for women and homemakers without an income is very low. 

Let us now understand more about the Personal Loans offered to women.

Interest rates on Personal Loans

Regular Personal Loans and Personal Loans for women do not have different interest rates. However, based on the applicant’s job profile and income source, the lender decides the interest rate on loan. 

As most lenders have an interest range for Personal Loans, every applicant might receive a different interest rate based on a few scrutiny factors. For example, HDFC bank might charge an interest rate between 10% and 21%, while SBI charges between 9% and 14%. 

Generally, every financial institution decides the interest rate at the time of the application. However, it does not remain constant and is subject to change.

Benefits of Personal Loans for women

  • Almost all lenders offer Personal Loans to women at the interest rate of 10.25% per annum.
  • The Personal Loan amount offered ranges up to 40 lakhs.
  • Every financial institution offers Personal Loans to women with a tenure of five years. However, a few institutions provide loans for up to seven years.
  • A processing fee for every customer is also charged while applying, ranging from 3% to 4%. Women with good credit scores could get instant loan approval, which does not come with a processing fee.

Eligibility criteria for Personal Loans for women

  • When applying for the Personal Loan, the minimum age of the woman applicant should be 21 years.
  • The maximum age of the women applicant at the time of loan maturity should not be more than 60 years.
  • The women applicants applying for Personal Loans should have served at least two years in a private sector or state/central government. In addition, the applicant must have served at least one year in their most recent employment.
  • The minimum monthly income required to successfully avail of the Personal Loan is Rs. 15,000. 
  • CIBIL score is the primary consideration of scrutiny to approve loans for every individual residing in India. All the lenders look for a CIBIL score to be 750 or higher to approve the Personal Loan. Women who meet these criteria get a higher loan amount with a lower interest rate. However, a few lenders also offer loans to women with a lower CIBIL score. They are offered loans with higher interest rates. The amount provided depends on other factors, such as income source and experience with the current employer.

Documents required for Personal Loans for women

Following are the required documents to apply for a Personal Loan:

  • ID proof – Aadhar, PAN, Voters ID, Drivers license, Passport
  • Address proof – Aadhar, Drivers license, Passport
  • Employment proof – HR letter or employment letter
  • Income proof
  • Latest salary slips
  • Form-16
  • Bank account statements for 6 or 12 months (depending on the lender’s rules)
  • IT returns (depends on the lender’s rules)

In addition to the above factors, women should also reach out to several financial institutions and study their interest rates before applying for a Personal Loan. 

Nowadays, an online Personal Loan is also possible, where women can self-analyse and opt for a Personal Loan right from the comfort of their homes. Plenty of information and tools are available on the internet, including the EMI calculators, which can calculate the amount of money to be repaid based on the interest rates and the tenure. 

Overall, Personal Loans are pretty helpful when used for justified reasons. The only disadvantage of Personal Loans is the higher interest rates.

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