Cholamandalam Finance has rolled out a more customer-centric personal loan policy aimed at increasing accessibility while maintaining strong credit quality. The updated guidelines benefit salaried customers from various company categories with simplified obligations, attractive FOIR norms, and enhanced balance transfer flexibility.
Eligibility Highlights
CIBIL Score Requirement
- Applicable to Cat A/B/C/D customers
- CIBIL score must be ≥ 700
Employment Criteria
- Only listed companies are eligible
- Minimum Net Monthly Income (NMI) for Delhi: ₹30,000
Age Norms
- Minimum age: 23 years
- Applicants aged between 21 and 23 require a co-applicant
Experience Requirement
- For loans up to ₹10 Lakhs: Minimum 1 year of experience
- For loans from ₹10 to ₹20 Lakhs: Minimum 5 years of experience
New-to-CIBIL Applicants (0 / -1)
- Eligible only for government employees
- Maximum loan cap: ₹20 Lakhs
Loan Structure and Limits
- Loan amount: Up to ₹20 Lakhs
- Tenure: Up to 84 months across categories (excluding Cat D for loans below ₹40K salary)
Accommodation and Residence Requirements
- Bachelor accommodation is allowed only with a co-applicant and ownership proof of the residence.
- If the customer is working from a different location (WFH):
- Requires 5 years of total work experience
- HR or supervisor confirmation is mandatory
- Co-applicant required
FOIR Norms (Fixed Obligation to Income Ratio)
Cat A/B:
- NMI up to ₹50K – FOIR up to 65%
- NMI above ₹50K – FOIR up to 70%
Cat C/D:
- NMI up to ₹50K – FOIR up to 55%
- NMI above ₹50K – FOIR up to 65%
Balance Transfer (BT) Policy
Cholamandalam’s updated balance transfer policy provides wider scope:
- Maximum of 6 BTs allowed (inclusive of Personal Loans and Credit Cards)
- BTs accepted from all banks and NBFCs (except cooperative and rural banks)
- FC letter mandatory at the time of disbursement
Special Provisions and Income Consideration
- Gold loan obligations are considered nil, provided there’s no over-leverage.
- Joint home loans will not be obligated if the spouse pays EMIs from their account and has sufficient income.
- Incentives (variable pay) can be considered, with an average of 60% of the last 3 months taken into NMI calculation.
- CIBIL vintage must be at least 6 months.
Credit Card Obligation Relaxation
- Gross Salary × 3 = Maximum credit card outstanding without it being considered as obligation.
Additional Highlights
- Fully digital process with same-day decision post-login
- Income clubbing accepted to enhance eligibility
- Grade 4 employees (Drivers, Peons, Technicians, etc.) can avail loans up to ₹5 Lakhs
Cholamandalam Finance’s personal loan policy is now more flexible, inclusive, and tech-driven—making it easier for salaried individuals across sectors to access finance without added complexity.
For more information, please connect with your local Sales Manager.
