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 – 28 years|
|Maximum Age limit||58 – 68 years|
|Type of Employment||Salaried, Business owner, Self-employed professional, Retired, Student & Home maker|
|Employment Status||Employed/In-business for at least 2 – 5 years|
|Minimum Net Monthly Income||Rs.5,000 and above|
|Work Experience||1 to 3 years & Above|
|Credit Score||CIBIL score of 750 or more|
|Maximum EMI||Up to 65% of Income|
|Bank||Age Limit||Work Experience||Minimum Income (Per Month)|
|SBI||Up to 76 years||As per the lender’s terms and conditions||Rs.5,000|
|HDFC||21 to 60 years||At least 2 years (Minimum 1 year with the current employer)||Rs. 15,000 (Rs.20000 for applicants residing in Mumbai, Delhi, Bengaluru,|
Chennai, Hyderabad, Pune, Kolkata, Ahmedabad, Cochin)
|ICICI||23 to 65 years||2 Years (For Salaried)|
5 years (For Self-employed)
|Rs.17,500 (Rs.25,000 for people residing in Mumbai & Delhi; |
Rs.20,000 for people residing in Chennai, Hyderabad, Bangalore, Pune & Kolkata)
|Axis||21 to 60 years||As per the lender’s terms and conditions||Rs.15,000|
|Kotak Mahindra||21 to 58 years||1 year||Rs.20,000|
|Tata Capital||22 to 58 years||1 year (Minimum 6 months with current employer)||Rs.15,000|
|IndusInd||21 to 65 years||2 years (for Salaried) |
5 years (for self-employed)
|Rs.25,000 (for Salaried) |
Rs.4.8 Lakh (for Self-employed)
|Ujjivan Small Finance||22 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 to 60 years||2 years (Minimum of 6 months with current employer)||Rs.35,000|
|IDBI||Up to 75 years||As per the lender’s terms and conditions||Rs.15,000 to Rs.41,667|
|HDBFS||21 to 65 years||1 year (Salaried) |
3 years (for Self-employed)
|Rs.15,000 (for Salaried)|
Rs.1 lakh Anually (For Self-employed)
|Indian Overseas Bank||Up to 60 years||As per the lender’s terms and conditions||Rs.5,000|
|Capital First||23 to 68 years||3 years||As per the lender’s terms and conditions|
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.
If you want to apply for a personal loan (PL) or unsecured loan, there are a few things you need to know about your eligibility for such a loan. This page answers some of the most commonly asked questions regarding loan eligibility. Read on to find out why this is an important part of applying for this loan.
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.
Checking your eligibility is a crucial step before applying for a loan. This will help you find out which loans you qualify for. If you apply for a loan you don’t qualify for, the lender will usually reject your loan application. A rejected loan application can adversely impact your credit rating.
The easiest way to check your personal loan eligibility is by accessing an online portal which allows you to do so. Alternatively, you can also get in touch with the bank or lender to find out the same.
Most platforms that help you check your eligibility offer the service free of cost. You can check whether you’re eligible or not without paying anything even if you choose not to take a loan later.
The following are the factors that affect your eligibility:
Your income indicates your ability to repay the loan you take. The more income you earn, the more satisfied a bank will feel about your ability to repay.
Living in a rented house means you spend a portion of your income towards paying rent. Living in your own house indicates that you are saving up that portion of the money. This means you have a little more financial bandwidth to repay a personal loan if you live in your own house.
Lenders determine loan eligibility and other loan terms and conditions based on where you live. If you live in a metropolitan city, you may get better loan terms. The same may not be true for rural areas.
The company or organisation you work for indicates your work stability and earning capacity. For example, if you work for a renowned organisation, it may indicate that your job is secure. This means you bear a lower risk of not repaying the loan.
When you apply for a loan, lenders will look at how many loans you’ve already taken. They then compare it with how much you earn every month. This, your debt-to-income ratio, will tell them how much of your current income goes towards repaying loans. If this ratio is high, it means you may not have enough of your income left to repay another loan. This may lead to loan rejection.
Having a good credit history or credit rating makes you eligible for a better loan. You may also get better loans terms and flexible repayment options.
Your credit score is a reflection of your credit history. It takes into account all your past credit card bill payments and loan repayments. The score shows your promptness in repaying your loans and bills. It also indicates how much of your credit limit you have been using. In short, it reflects how responsible you are in financial matters. Lenders prefer offering loans to individuals who have good credit.
Yes, you can still get a loan if your credit score is bad. However, this depends on how the lender decides to process your application. Usually, banks don’t prefer giving loans to people with a poor credit rating. But if you’re able to convince the bank, you just may be able to get a loan. Even then, you may be given less convenient terms such as a high rate of interest. The best solution would be to try and improve your credit score before applying for a loan.
No, you won’t be eligible to apply for a personal loan while you’re studying. Lenders offer loans only to individuals who earn an income.
Do I need a guarantor, or should I offer collateral to get a loan?
No, if you’re applying for a personal loan (unsecured loan), you don’t need a guarantor, nor do you need to offer collateral. The loan is offered based on your income. It serves as the security against the loan.
Yes, you can apply for more than one loan at a time. But this is highly not advisable. Applying for multiple loans may make lenders feel you want unnecessary credit. Also, it may become extremely difficult for you to keep track of multiple repayment schedules.
Most lenders may offer you a loan only if you already have an existing relationship with them. There are a few exceptions to this though. However, having an existing relationship with a lender can help you get a loan with various benefits. For example, you may get lower interest rates, flexible repayment options, and other such loan terms.
Yes, you can. When you apply for this type of a loan, the application is processed in your name. Your personal creditworthiness is considered to determine loan eligibility. Your business never comes into the picture. You are personally liable for repaying the loan as well.
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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