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Age of the Applicant 23 to 58 years
Eligible Salary 20,000 per month and above
Work Experience for Salaried Minimum 6 months

Business Stability for Self Employed

3 years and above

Minimum CIBIL Score

Maximum EMI as percent of Income 65%

check your eligibility


Personal Loan Eligibility Criteria

Every individual at some point in life will face a financial crunch where they will need more funds to fulfill the requirements. It can be for any need like travelling, renovation, marriage expenses, medical emergency, education, vehicle, consumer durable goods and so on. It is for this reason that banks provide Personal Loans, which are multi-purpose loans so that you can use the funds for any purpose.

A Personal Loan is an unsecured loan wherein a collateral is not required to avail the loan, which is given by most of the banks and non-banking financial companies (NBFCs). This is a high-risk loan on the part of the bank or NBFC due to which interest rates on Personal Loans are higher than secured loans.

In case you are planning to apply for a Personal Loan, you first need to compare among all the financial institutions that are offering a loan. This will help you find a suitable lender with the lowest rate of interest.

Interest rates should be the main factor to choose a lender since even a slight difference in the percentage will have a huge impact on your interest amount.

Using a Personal Loan Eligibility Criteria

The fastest way of checking whether you are eligible for a Personal Loan or not is the Personal Loan eligibility calculator. It is an automated tool that you can find on MyMoneyMantra. It is extremely easy to use. All you need to do is fill in details on parameters such as - Your age, your salary, combined amount that you pay in monthly EMIs on loans, combined monthly outstanding on all your Credit Cards and whether you have a Home Loan going or not. Once all details are entered simply, press the 'check for eligibility' tab and get an instant response.

Personal Loan Eligibility

You may be eligible for Personal Loan from one or more banks in India if you meet the following eligibility conditions:

Age: Minimum 21 years and maximum 65 years. Most banks have however, fixed 23 years as the minimum age.

Loan Amount: Minimum 1 Lakh and maximum up to 50 Lakhs. However, for most banks 25 Lakhs is the upper limit on a Personal Loan. You may also come across banks that only offer a maximum Personal Loan amount that is 10-22 times that of your net monthly income.

CIBIL Score: For most banks a high CIBIL score is a must for lending a Personal Loan; usually, the ideal being a score of 700 or more.

Net Monthly Income: A regular salary and flow of income is a must to get a Personal Loan easily. Most banks prefer at least 15,000 net monthly income of borrowers from rural or semi-rural areas while a minimum income of 20,000 is required from metro dwellers. If you are on rent a higher net monthly income might be needed.

Work Experience: Banks usually prefer a work experience with the current employer to be at least 1-3 years.

Ongoing EMIs: Any ongoing equated monthly instalment (EMI) is a liability and a negative impact on your Personal Loan eligibility. It is always better to clear off existing loans before applying for another one.

Methods of Calculating Eligibility

There are two ways of calculating the Personal Loan eligibility:

  • Multiplier Method
  • FOIR (Fixed Obligation to Income Ratio)

Multiplier Method: Under this method, the banks apply a multiplier to your net take home salary in order to calculate your Personal Loan amount eligibility. The multiplier applied is a function of the take home salary and the company profile. Higher the salary and reputed the company, higher is the multiplier and the loan eligibility. Higher the category to which a company belongs, the more will be the loan amount eligibility and lesser the Personal Loan rate of interest.

FOIR (Fixed Obligations to Income Ratio): Under this process, the Personal Loan amount eligibility is computed on the basis of maximum EMIs or monthly instalments you can pay with regard to the net income after accounting for all other fixed expenses like rent and EMIs. Banks or NBFCs generally accept up to 50% of your net income as EMIs, the existing fixed obligations, and the credit card outstanding. If the obligations exceed the bank norms, then the bank will either reduce the loan amount or will increase the tenure of the Personal Loan.

The bank computes your eligibility in such a way that fixed obligations do not exceed 50% of your income. This percentage can vary from lender to lender and for high-income borrowers, this can be upto 65%.

The banks will compute a person's eligibility under multiplier and FOIR system and then they will approve a Personal Loan amount whichever is lower of the loan eligibility calculated under these two methods.

Documents Required for a Personal Loan

The documents to be submitted while applying for Personal Loans are as below:

  • Duly completed loan application form

  • Recent passport size photographs

  • Bank account statements or passbook for the last six months

  • Proof of residence (photocopy of recent telephone bills or electricity bill)

  • Proof of identify (photocopies of Voters ID Card/ Aadhaar Card/ Passport/ Driving License/ PAN Card)

  • IT returns details for the three years for self-employed professionals

  • Form 16 or IT returns for the last two financial years for salaried employees

Factors Affecting Personal Loan Eligibility

The eligibility criteria for availing Personal Loans vary from bank to bank. There are a few common guidelines which, the majority of the lenders follow when it comes to approving a Personal Loan. The basic variables that determine an individuals' eligibility for applying a Personal Loan are:

Age Criteria:

Age of an individual is one of the most important criteria that are considered while scrutinising for the approval of a Personal Loan. The main guideline followed by most banks and other financial institutions is that for availing a Personal Loan, a salaried individual must between the age group of 21 years to 60 years while for a self-employed person it has to be within 25 years to 65 years of age.

Credit Rating:

The credit history of an applicant is an important aspect that lenders look into while approving Personal Loans. Delays and defaults in paying monthly EMIs of other loans or credit card dues are considered which can lower the eligibility for Personal Loans from banks and other financial institutions. Therefore, a good credit rating enhances the total amount that one is eligible for.

Employment Stability

The employment stability of the person who takes loan also forms a crucial eligibility criterion. According to the banks and other financial institutions, a salaried person with a minimum of 2 years of service with 1 year in the current profession and a self-employed person with a minimum of 5 years of total earning tenure with at least 2 years in the current profession is eligible for taking a Personal Loan.


As a Personal Loan is an unsecured loan, thus the kind of employer the applicant is working with is given due credit while taking a decision on the eligibility criteria for Personal Loans. The employees in the public sector who are working with established private companies are better eligible for availing Personal Loans as compared to others as there is stability in their income.

Financial Situation:

The current and previous financial condition of a person is an important factor while approving a Personal Loan to an individual. Minimum levels of income and earnings have been specified by the various banks for applying for Personal Loans. The financial condition determines the loan repayment capacity of an individual who has taken a loan and hence the lenders give maximum importance to this aspect while giving an unsecured Personal Loan to any individual.

Outstanding Credit Liability:

If there are any existing pending loans which the applicant has at the time of applying for a Personal Loan, they are likely to reduce the eligibility in terms of maximum amount possible. As the amount is calculated as per EMI that the applicant can possibly repay, the contributions towards other outstanding loans decrease the total Personal Loan amount in whole.

How Can I Get a Personal Loan?

In case you want to apply for a Personal Loan, you can either apply online or you can visit any nearby bank branch of your choice. You can download the home loan application form from the bank's official website, fill the form completely and submit it to the bank representative.

There are various ways to reduce your Personal Loan EMIs such as:

  • Check your credit score: It is always good to check your credit score and credit report. In case you have a good credit score (700 and above) then that means that you have paid all your dues on time and are an ideal customer for the bank. This also gives you an upper hand in any negotiations to get a better deal on your Personal Loan. It also helps you to rectify any negative points on your report since a bad credit score is the main grounds for loan rejection.

  • Opt for a longer tenure: If you have a long Personal Loan tenure then your EMI reduces proportionately as your principal and interest amount is divided over a higher number of months. However, while the actual monthly payout will be smaller, you will be paying out EMIs for a longer duration and also paying interest for a longer period. Therefore, while your monthly burden might be reduced, you might end up paying more over the entire tenure of the loan.

  • Negotiate with the bank: In case you are having a cordial relationship with your bank and you stand good with them who will know all your details like salary, expenses and so on; then you can always negotiate with your bank in terms of the loan. The same can be applied for existing lenders or previous ones where you have paid all your dues on time showcasing that you are disciplined when it comes to financial matters then you can negotiate a better deal with the bank.

  • Making an early prepayment: One way to significantly reduce your EMI for the majority of your period of the loan is to make a pre-payment of your Personal Loan. If you are able to afford the option of prepaying a part of your loan, then it is better to do so in the early months or years of the period of the loan so that your principal amount is reduced saving your interest on later payments.

Personal Loan Eligibility Criteria of Different Banks in India

Name of Bank Loan Amount and Max Tenure Age of Borrower
HDFC Bank Personal Loan 40 Lakhs for 60 Months 21 to 60 Years
SBI Personal Loan 15 Lakhs for 60 Months 21 to 58 Years
ICICI Bank Personal Loan 30 Lakhs for 60 Months 23 to 58 Years
Citibank 30 Lakhs for 60 Months 23 to 60 Years
Axis Bank 15 Lakhs for 60 Months 21 to 60 Years
Bajaj Finserv 25 Lakhs for 60 Months 27 to 58 Years
IndusInd Bank 25 Lakhs for 60 Months 21 to 60 Years
Bank of Baroda 2 Lakhs for 36 Months 21 to 60 Years
Yes Bank 20 Lakhs for 60 Months 21 to 60 Years
PNB 15 Lakhs for 60 Months 21 to 58 Years
IDFC Bank 25 Lakhs for 60 Months 25 to 60 Years
Standard Chartered Bank 30 Lakhs for 60 Months 23 to 58 Years
Syndicate Bank 2 Lakhs for 60 Months 21 to 58 Years
Tata Capital 20 Lakhs for 60 Months 21 to 58 Years
Indian Overseas Bank 15 Lakhs for 60 Months 21 to 58 Years
Federal Bank 10 Lakhs for 48 Months 21 to 55 Years
Fullerton India 20 Lakhs for 48 Months 21 to 58 Years
Kotak Bank 15 Lakhs for 60 Months 21 to 58 Years
Andhra Bank 5 Lakhs for 60 Months 21 to 55 Years
RBL Bank 20 Lakhs for 60 Months 25 to 60 Years
Allahabad Bank 7.50 Lakhs for 60 Months 21 to 58 Years
IIFL 25 Lakhs for 60 Months 25 to 60 Years
IDBI Bank 10 Lakhs for 60 Months 22 to 60 Years
Vijaya Bank 6 Lakhs for 60 Months 21 to 55 Years
Canara Bank 3 Lakhs for 48 Months 21 to 60 Years
Capital First 25 Lakhs for 60 Months 23 to 60 Years
HDB Financial 20 Lakhs for 60 Months 21 to 60 Years

Personal Loan Application Process for Existing Customers

The customers who already exist can apply for a Personal Loan online or they can visit a nearby bank branch for the application. They can also download the Personal Loan application form from the bank's website, duly fill the form and submit it to the bank representative. Due to already existing scenario the chances of approval of the application will be higher and the dispersion of funds will be faster.

Personal Loan Application Process for New Customers

The procedure to apply for a Personal Loan in case of new customers is similar to existing customers. The only difference is that due to lack of previous relationship the loan approval process will take some more time, which is maximum of a week as all the verification process will take place from the start.

Why Apply for a Personal Loan on MyMoneyMantra?

MyMoneyMantra helps to pre-screen your application and suggests the lender which financial institute suits your eligibility and requirement and is willing to lend to you. It also increases the chances of approval rate and helps you to get the right loan and credit card.

To make it simple for the customers and to know exactly how much they need to pay every month, the customers can make use of the Personal Loan EMI calculator

This calculator helps the borrowers to calculate the EMIs per month as per their affordability. This also helps the borrowers to plan accordingly as per their budget. Using the Personal Loan EMI calculator gives you a simpler and a quick way to accurately compare the various loans and also determine what your monthly installment will be with the different lenders.


What is the Personal Loan eligibility for salaried employees?

Loan eligibility for salaried employees depends on various factors like:

Age: minimum is 21 years and maximum is 65 years (it might vary from bank to bank)

Salary: minimum 18,000 per month

Total working experience: minimum 3 years of professional experience

What should be the minimum and maximum age group to get a Personal Loan?

The minimum age limit for a person to apply for a Personal Loan should be 21 years. Maximum age can be up to 60 years (for salaried employees) and 65 years (for self-employed) at the time of loan maturity.

How does my income determine my eligibility?

The person's monthly income to get a Personal Loan should be at least 25,000. A few banks give loans to individuals with salary less than that of 25,000. Banks follow a different limit to calculate the ratio of your fixed obligations to your monthly income. For instance, if your monthly income is 30,000, then the bank calculates your eligibility such that fixed obligations do not exceed more than 50% of your income.

And in case, your income is more than 40,000 per month, then banks will allow higher fixed obligations to income ratio of around 65%, which means that your fixed expenses can be up to 65% of your income to be eligible for a Personal Loan from a bank. Higher the income, better are the chances to get high Personal Loan amount.

Does company profile affect my eligibility for availing a Personal Loan?

Yes, the company profile affects your Personal Loan eligibility. A good company profile along with a high salary increases your eligibility to get a Personal Loan at low interest rate. There are a few banks that offer loan to non-categorized company employees but at the higher interest rate.

Do my existing loan obligations affect the Personal Loan eligibility?

In case you are already paying a monthly EMI for any existing loan then your eligibility for the new loan that you have applied will be comparatively low.

How can I improve my eligibility for a Personal Loan?

You can improve the eligibility for a Personal Loan by following the below steps:

In order to increase your eligibility, pay off your running debts completely.

Pay your EMIs or other obligations timely so that you improve credit history and it also helps to negotiate with banks in future in order to get high loan amount.

Transfer your existing loans to a lower rate of interest in order to reduce your existing EMI and also to get a new loan of a higher amount.

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