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    Personal Loan Eligibility

    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
    *Note: The eligibility criteria will vary from lender to lender.

    Personal Loan Eligibility Calculator

    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:

    Check Personal Loan Eligibility
    • Visit www.bankbazaar.com.
    • Click on ‘Personal Loan’ and then click on ‘Custom Quote’.
    • On the redirected page, you will need to select your gender.
    • Next, you will have to enter your age and date of birth, post which you can click on ‘Continue’.
    • On the following page, you will have to select the city that you reside in and select the year that you moved to the city that you currently reside in. You will also have to enter when you shifted to your current residence.
    • Next, select your residence type. On the next page, enter the company that you work for. If you are a business owner, you will need to click on ‘Own a Business’, after which you will need to click on ‘Continue’.
    • Select the year and the month that you joined your workplace and your total years of work experience.
    • On the next page, you will need to enter your monthly salary, after which you will have to indicate which bank you have a salary account with.
    • Next, select the purpose of your loan.
    • On the following page, enter the total EMIs that you currently pay. Click on ‘Skip’ if you do not pay any EMIs.
    • You may choose to enter your name, mobile number, and email ID on the following webpage. Keep in mind that any details that you provide on this page are completely secure. Post this, click on ‘View Free Offers’.
    • On the redirected page, you will be able to view all the lenders that offer you loans and the particulars of these loans.

    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.

    Check Personal Loan Eligibility for Top Lenders in 2019

    Listed below are the eligibility criteria of a few of the top lenders in the country:

    BankAge LimitWork ExperienceMinimum Income (Per Month)
    State Bank of IndiaUp to 76 years of ageAs per the lender’s terms and conditionsRs.5,000
    HDFC Bank21 years to 60 years2 yearsRs.15,000 to Rs.20,000
    ICICI Bank23 years to 65 years2 years to 5 yearsRs.17,500 to Rs.1 lakh
    Axis Bank21 years to 60 yearsAs per the lender’s terms and conditionsRs.15,000
    Kotak Mahindra Ban21 years to 58 years1 yearRs.20,000
    Tata Capital22 years to 58 years1 yearRs.15,000
    IndusInd Bank21 years to 65 years2 years to 5 yearsRs.25,000 to Rs.4.8 lakh
    Ujjivan Small Finance Bank22 years to 58 yearsAs per lender’s terms and conditionsShould be over the minimum wage limit prescribed by the state
    India Infoline Finance Limited25 years to 60 years2 yearsRs.35,000
    IDBI BankUp to 75 years of ageAs per the lender’s terms and conditionsRs.15,000 to Rs.41,667
    HDB Financial Services21 years to 65 years1 year to 3 yearsRs.15,000 to Rs.1 lakh
    Indian Overseas BankUp to 60 years of ageAs per the lender’s terms and conditionsRs.5,000
    Capital First23 years to 68 years3 yearsAs per the lender’s terms and conditions

    Factors that Affect Personal Loan Eligibility

    The eligibility criteria apart, there are a few factors that have an impact on your personal loan application. They are as follows:

    • Geographic location: The area in which you reside plays a crucial role in determining whether or not you will qualify for a personal loan. Those who stay in metropolitan cities have a better chance of getting a personal loan than those who stay in rural or semi-urban areas.
    • Income: Your personal loan eligibility will also depend on your income. The higher your income, the higher the loan amount you will be eligible for as banks perceive you as someone with excellent repayment ability.
    • Housing situation: Your housing situation also plays an important part in determining your personal loan eligibility. If you reside in your own house, you will have a better chance of having your application approved. The reason for this is that living in a rental house lowers your disposable income, thereby lowering your repayable capacity.
    • Existing credit: In case you have availed another personal loan, your chances of getting a new loan will be lower than if you have no other credit to repay.
    • Company: The company for which you work will also determine if you get a personal loan. Working for a popular company which has a good reputation make you come across as someone with a stable job, thereby making you a safe bet for the lender.
    • Credit history: Your credit score and credit history will have the biggest impact on your personal loan eligibility. The interest rate, tenure, and loan amount you can borrow will depend on this factor. To improve your chances of getting a personal loan, it is advisable to have a credit score of over 750.

    Documentation Required

    • Duly-filled and signed application form
    • 2 passport-size photographs
    • Cheque - Processing fee
    • Proof of:
      • Identity - Voter ID/ Passport Copy/ Driving License / PAN Card (any one)
      • Address - Passport Copy/ Utility Bill (Electricity, Water)/ Rental Agreement/ Ration Card (any one)
      • Income (depending on type of employment) - Latest Salary Slips (3 months) / Bank Statements (3 - 6 months) / Passbook (3 - 6 months)/ Current Salary Certificate (any one)
      • Tax paid - Latest Form 16/ Income Tax Return
      • KYC Documents – Address proof, proof of date of birth, identity proof

    FAQs

    Can I avail a personal loan if I require funds for business needs?

    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.

    Can I apply for a personal loan even if I have a low credit score?

    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.

    How does my credit score affect my eligibility?

    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.

    Do I need to pay a fee to check my eligibility?

    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.

    I am currently pursuing my post-graduation. Can I apply for a personal loan?

    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.

    Can I apply to multiple banks for a personal loan at the same time?

    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.

    Is there any way to increase my eligibility when 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.

    Will I get a personal loan if I don’t have a savings account with the lender?

    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.

    Will I be eligible to get a personal loan if I don’t have a guarantor?

    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.

    How long do lenders take to disburse the loan amount?

    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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