Credit Scores
J&K Bank provides personal loans to both salaried and self applicants based on their credit scores. The bank has not specified the role of their loan applicants’ credit scores in deciding the Personal Loan interest rates.
Personal loan applicants looking to improve their personal loan eligibility can follow healthy credit practices like on time payment of their EMIs, avoiding multiple loan applications within short durations, maintaining an optimal credit mix between loans and credit cards, etc. to increase/maintain their credit scores and thereby, improve their eligibility for availing personal loans. They should also regularly fetch their credit reports to inform their lender/credit bureau in case of any mistakes in the report. Error(s) in the loan applicants’ credit reports can reduce their credit score, which in turn negatively affects their eligibility for availing personal loans. Lower credit scores may also reduce loan applicants’ chance of availing lower interest rates on personal loans.
Income
J&K Bank has not disclosed offering differential personal loan interest rates to its loan applicants based on their income. However, many lenders consider providing lower interest rates for their personal loan applicants having higher incomes as they have higher repayment capacity, which in turn represents lower credit risk for lenders.
Prospective J&K Bank Personal Loan applicants can use the J&K Bank Personal Loan EMI Calculator to determine the optimal EMI and loan tenure for avaling personal loans with the bank based on their repayment capacity.
Occupation Profile
J&K Bank decides the personal Loan interest rates of its loan applicants based on their occupation profile and employer profile. Similarly, many lenders consider the employer profile of their loan applicants while finalising their personal loan interest rates. Note that lenders usually offer lower interest rates on personal loan for salaried as compared to personal loan for self-employed applicants. In terms of job security, lenders usually provide personal loans for government employees at lower interest rates compared to personal loans for private sector employees. Lenders also offer lower personal loan interest rates to employees of MNCs and top private sector employers because of the ability of these companies to withstand adverse economic conditions.
Existing Relationship with J&K Bank
The J&K Bank Personal Loan interest rates are lower for existing customers having a salary account with the bank. Hence, existing J&K Bank customers, especially those having their salary account with the bank, should first contact it for availing personal loans, as they have higher chances of availing favourable J&K Bank Personal Loan interest rates.
