What Are The Some Basic Criteria That Banks Check To Set Credit Limits To Their Customers?

Credit Limits:

To Know How Credit Limits Works, You Have To Understand Billing Cycles This Is The Amount Of Time Between Monthly Bills Being Due. The Main Factors Which Is Work On Fixing Credit Limits Are Given Below.


The Salary That An Employee Withdraws Plays An Important Role In Setting Credit Limit. It’s The Basic And Foremost Eligibility Criteria That A Bank Sets For The Employees.

Company Name:

The Bank Has Tie-Up With Corporate To Open Salary Accounts. To Receive Good Offers Apply For A Credit Card With The Bank That You Already Hold A Salary Account.

Age :

As Per Banking Norms, 18 To 60 Years Is The Minimum And Maximum Age To Apply For A Credit Card Which Is Not The Same Across All Banks. If You’re Below 21 The Bank Might Ask You Additional Documents To Issue The Card.

Repayment Track in CIBIL :

If You Take Any Financial Support From Bank Which Includes Loans, Credit Cards Etc. From Any Bank And If You Make Your Payments Within Due Date Then Your CIBIL Repayment Track Will Be Very Good.

CIBIL – CIBIL(Credit Information Bureau (India) Limited) Is The Credit Score, Generated After Making Due Payments For Either Credit Cards, Loans For A Minimum Period Of 6 To 7 Months. It Maintains All Your Repayment Track Records.

The Score Will Be Good If Payment Is Made Within Due Date Else It Will Be Bad.
The Score Ranges From 300 To 900, Any Score Above 750 Is Considered As Good.

Apply Credit Card

Previous Credit Card History:

If Your Previous Usage Is Good And Repayment Dues Are On Time Then You Will Receive A Good Limit.

Salary Account Transaction History:

If Your Salary Account Transaction Is Good Then The Possibility For You To Get A Good Credit Limit Is High.

Category 1

Let’s Say If A Customer Is Getting A Salary Of Rs.30,000 And Works For A Company That Is Not Having A Salary Account Tie-Up With ICICI Bank And He Is Not Having Any CIBIL History He Will Be Getting A Credit Limit Of Rs.20000 Because The Company He Working, Is Not Listed In ICICI Back And The Customer Doesn’t Have Any CIBIL History.

Category 2

In This Scenario If A Customer Is Getting A Salary Of Rs. 30,000 And The Company He Works For Has ICICI Bank Relationship And Customer Is Having CIBIL History, Then Customer Will Be Eligible For Getting A Credit Limit Of Rs.50000 Because He Is Working In A Listed Company Ae Per ICICI Back And The Customer Doesn’t Have Any CIBIL History

Category 3

Thirdly If A Customer Credited With A Salary Of Rs. 1,00,000 And Works For A Company That Listed With ICICI Bank And Has A CIBIL History, But He Has Obligations Like Personal Loan And Home Loan Running Along With Which He Is Already Using 4 Other Credit Cards For Which He Has Limit Of Rs.1,00,000+ Per Card.At The Time Of Applying For The 5th Credit Card The Total Outstanding Including All Credit Cards Is Rs. 3,00,000.

In This Case, There Is A Chance That The Customer Will Get A Credit Limit Of Rs.50,000 Because The Customer Is Already Having Commitments To Repay Loans And The Outstanding Credit Cards Limit.

Category 4

Finally, Let’s Say If A Customer Is Withdrawing A Salary Of Rs. 50,000 And Has A CIBIL History And His Company Has A Relationship With HDFC Bank. He has Only A Personal Loan Running And Is Already Using A Credit Cards For Which He Already Has A Limit Of Rs.1,00,000 While Applying For The 2nd Credit Card The Total Outstanding In His Credit Card Is Rs. 5,000.
In This Scenario, The customer Will Have A Possibility To Get A Credit Limit Of Rs.1,50,000 Because He Has Very Few Obligations To Repay Loans And Credit Cards.

Note: The Above Information Is Based On The Norms And Criteria Set By Banks In General. This Information Will Vary From Bank To Bank.

Read more: Personal Loan Balance Transfer, How Your Credit Card Repayments Works?

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