Get Complete Knowledge of Personal Loan Eligibility Criteria

Personal Loan eligibility is determined by several characteristics, such as your credit score, age, income, occupation, and employer’s profile at a bank or NBFC. Here are the standards that leading financial institutions have set for approving personal loans, along with advice on how to raise your chances of being accepted personal loan statements.

Read on to know how you’ll be eligible to get the best personal loans.

Minimum and maximum age: between 21 and 65 years old

Loan Amount: Up to 40 Lakh

Your Personal Loan eligibility is determined by your monthly net income: It is typically 10 to 27 times the monthly net income.
Numerous banks limit their maximum lending amount to Rs. 25 Lakhs.

Minimum Net Monthly Income: Rs. 10,000 (For Semi-Urban & Rural Areas) & Rs. 15,000 (For Urban Areas) (For Metro areas)

Some banks may list a greater minimum income requirement for personal loans than other banks.
Proof of income is required for salaried individuals to prove stable and timely revenue.

Employment type: Individuals who are both salaried and self-employed are qualified for Personal Loan eligibility.

Due to their job security and income consistency, salaried employees of reputable firms have an edge.
Due to their higher income, self-employed professionals like doctors and chartered accountants are eligible for larger loan amounts.

Existing debts and liabilities: Your loan amount and interest rate will be affected by your existing debts and liabilities.

Additional Read: Know the List of Important Documents Required for a Personal Loan

Your current EMIs will reduce your income-to-debt ratio, resulting in unfavourable terms for your personal loan.

Minimum Work Experience: Individuals with a salary must have been employed for at least 2 years, the latest year of which must have been with the current organization.

For self-employed applicants, the business must have been in operation for at least three years, the latest two of which must have been profitable.

Minimum credit score: for a personal loan, it should be 650 and above

750+ is regarded as optimal.

For those who aren’t sure if they qualify for a personal loan, the Personal Loan Eligibility Calculator can help. For the benefit of their borrowers, most financial institutions now offer this eligibility calculator on their own websites. Upon entering this information, the calculator will determine how much of a personal loan you can get. To avoid being disappointed by a loan application rejection, use this calculator to check your eligibility before submitting it.