A personal loan is an unsecured advance offered by both banks and non-banking financial corporations to any eligible individual. It is very important to be aware of your personal loan eligibility details as this will simplify and quicken your application process. Each bank has separate minimum criteria for income, age, employment type, credit score, job status, etc. You will need to meet these criteria in order to apply for a personal loan from a particular lender.
Personal loan eligibility criteria varies across lenders based on the borrower’s profile and relationship with the bank. The general requirements and limits are outlined below:
|Minimum age limit||21 years – 28 years|
|Maximum age limit||58 years – 68 years|
|Employment Status||Employed/In-business for at least 2 – 5 years|
|Minimum Income||Rs.5,000 and above|
|Work Experience||1 to 3 years|
|Interest Rate||10% p.a. - 24% p.a.|
|Maximum Loan Amount||Up to Rs.50 lakhs|
|Credit Score||CIBIL score of 750 or more|
|Repayment Tenure||Up to 60 months|
You can check if you are eligible to apply for a personal loan by using the personal loan eligibility calculator tool, which you will find on the official websites of lenders. You can also choose to check your eligibility through a third-party financial services website like BankBazaar.com. Here are the steps that you will need to follow to check your eligibility through BankBazaar.com:
Using the Eligibility Calculator tool will help you check which personal loans you are eligible to apply for, hence simplifying the application process. From the loans that are available to you, you can select any loan that matches your requirements and apply for the same. Look for Latest Personal Loan Interest Rates in India before applying.
Listed below are the eligibility criteria of a few of the top lenders in the country:
|Bank||Age Limit||Work Experience||Minimum Income (Per Month)|
|State Bank of India||Up to 76 years of age||As per the lender’s terms and conditions||Rs.5,000|
|HDFC Bank||21 years to 60 years||2 years||Rs.15,000 to Rs.20,000|
|ICICI Bank||23 years to 65 years||2 years to 5 years||Rs.17,500 to Rs.1 lakh|
|Axis Bank||21 years to 60 years||As per the lender’s terms and conditions||Rs.15,000|
|Kotak Mahindra Ban||21 years to 58 years||1 year||Rs.20,000|
|Tata Capital||22 years to 58 years||1 year||Rs.15,000|
|IndusInd Bank||21 years to 65 years||2 years to 5 years||Rs.25,000 to Rs.4.8 lakh|
|Ujjivan Small Finance Bank||22 years to 58 years||As per lender’s terms and conditions||Should be over the minimum wage limit prescribed by the state|
|India Infoline Finance Limited||25 years to 60 years||2 years||Rs.35,000|
|IDBI Bank||Up to 75 years of age||As per the lender’s terms and conditions||Rs.15,000 to Rs.41,667|
|HDB Financial Services||21 years to 65 years||1 year to 3 years||Rs.15,000 to Rs.1 lakh|
|Indian Overseas Bank||Up to 60 years of age||As per the lender’s terms and conditions||Rs.5,000|
|Capital First||23 years to 68 years||3 years||As per the lender’s terms and conditions|
The eligibility criteria apart, there are a few factors that have an impact on your personal loan application. They are as follows:
Yes, you can avail personal loans for your business needs. However, certain lenders may only offer personal loans to salaried employees. Thus, make sure to check the eligibility criteria specified by the lender before applying for the loan.
If your credit score is low, your loan application may be rejected by the lender. Even if your loan application is approved, it is likely that you will have to pay a high interest rate for the loan. Hence, it is advisable to check your credit score before applying for a loan. If you find that your credit score is very low, you can try to improve it to increase your chances of getting loans.
Your credit score indicates your repayment ability and your creditworthiness. By checking your credit score, the lender will be able to evaluate how likely you are to repay your loan EMIs as per schedule. Banks usually tend not to give loans to individuals who have low credit scores since it increases the risk of EMI defaults.
You can calculate your eligibility by using the eligibility calculator tool, which is available on the websites of most lenders or through trusted third-party financial services websites, for free, regardless of whether you proceed with the loan application or not.
No, most banks and financial institutions only offer personal loans to salaried employees, those who are self-employed, and to business owners. Lenders might not consider you as an eligible applicant unless you have a source of income and meet the age requirements.
It is not advisable to apply to multiple lenders for a personal loan all at once. If you submit multiple applications, lenders will assume that you are credit-hungry. Further, lenders will also assume that you are less likely to actually take a loan from them, which may cause them to deny your application or give you a loan at a high interest rate. It is, thus, recommended that you check your eligibility and compare the particulars of the loans offered by different lenders through a third-party financial services website like BankBazaar, before applying for a personal loan.
You can try to improve your credit score, which will make you a more eligible candidate. Further, you can also try opting for a lower loan amount, thus reducing the financial burden on yourself. If you have recently applied for a loan, it is advisable to not immediately apply for a personal loan.
Most lenders require applicants to have a salary/savings account with them. A few lenders, however, may not have this restriction. It is best to check the lender’s eligibility criteria to know whether you can apply for a personal loan even if you don’t have a savings/salary account with the lender.
Most banks and financial institutions do not require personal loan applicants to have a guarantor, given that a personal loan is a type of unsecured loan.
The disbursal time for personal loans varies greatly from lender to lender. Also, if you are a pre-approved customer, the loan disbursal is likely to happen at a faster pace. Generally, you can expect the disbursal time to range between 3 seconds and 48 hours, if not more.
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