Whenever you apply for a personal loan, banks/NBFCs decide whether to grant you a loan or not on the basis of factors including your credit score, age, income, occupation and employer/company profile. In this article, what are the personal loan eligibility criteria prescribed by top banks/ NBFCs and how you can increase your chances of getting a personal loan easily.
Eligibility Criteria for Personal Loan for Salaried and Non-Salaried Applicants
| description | for the employed | for non-employed |
| Age Range | 18 – 60 years | 21 – 65 years |
| Minimum Income (Varies with each Bank/NBFC) |
₹15,000 per month | ₹15 lakh per annum |
| Minimum work experience / business continuity | 1 year (6 months in existing company/institution) | 2 consecutive years in business |
| credit score | 750 and above |
Personal Loan Eligibility Terms of Top Banks and NBFCs
| Bank / Loan Institution | loan amount | minimum eligible income | eligible age |
| Axis Bank | Up to ₹ 15 Lakh | ₹ 15,000 per month | 21 to 60 years |
| Bajaj Finserv | Up to ₹ 25 Lakh | ₹ 25,000 per month | 21 to 67 years |
| full turn india | Up to ₹ 25 Lakh | ₹ 20,000 per month | 21 to 60 years |
| HDFC Bank | Up to ₹ 40 Lakh | ₹ 25,000 per month | 21 to 60 years |
| ICICI Bank | Up to ₹ 25 Lakh | ₹ 17,500 per month | 23 to 58 years |
| IDFC First Bank | Up to ₹ 40 Lakh | ₹ 20,000 per month | 23 to 65 years |
| indusind bank | Up to ₹ 15 Lakh | ₹ 25,000 per month | 21 to 60 years |
| Kotak Mahindra Bank | Up to ₹ 25 Lakh | ₹ 25,000 per month | 21 to 58 years |
| money view | Up to ₹ 5 Lakh | ₹ 13,500 per month | 21 to 57 years |
| pay-sense | Up to ₹ 5 Lakh | ₹ 15,000 per month | 21 to 60 years |
| Punjab National Bank | Up to ₹ 25 Lakh | ₹ 15,000 per month | over 18 years |
| standard Chartered Bank | Up to ₹ 50 Lakh | Above ₹ 22,000 per month | 22 to 58 years |
| State Bank Of India | Up to ₹ 20 Lakh | ₹ 15,000 per month | over 18 years |
| Tata Capital | Up to ₹ 25 Lakh | ₹ 15,000 per month | 21 to 58 years |
| Yes Bank | Up to ₹ 40 Lakh | depend on the case | 22 to 60 years |
Factors affecting personal loan eligibility
- Credit Score: Banks/NBFCs check the credit score of their loan applicants while deciding the interest rates for the loan to be offered. Personal loans at low interest rates for people who have a high credit scoreis provided. Therefore, maintain a credit score of 750 and above. Paying your credit card bills and EMIs on time, not applying for multiple loans or credit cards in a short span of time and keeping the credit utilization ratio at a minimum will help you maintain a high credit score. Mistakes in your credit report can also lower your credit score. Therefore, applicants should check their credit reports from time to time so that such mistakes can be identified and necessary measures can be taken in time so that your credit score is not reduced. To check your credit score for free, you can get a free credit report once a year from each of the credit bureaus or Paisabazaar.comYou can check your credit score from multiple bureaus for free and get monthly updates as well. Those who have low or no credit score can improve their credit score by availing free Paisabazaar Step-Up Credit Card.
- Employment Type and Employer/Company Reputation: Banks/ NBFCs offer personal loans to salaried applicants at lower interest rates as compared to non-employed applicants as their income is fixed every month. Even among salaried applicants, preference is given to government employees, followed by employees working in reputed corporate and multinational companies. In case of non-employed applicants, professionals like CAs, doctors, architects are more likely to get personal loans at lower interest rates. In case of multiple banks/lending institutions, salaried applicants must have at least 1 year of work experience to be eligible for a personal loan. On the other hand, if the applicant is non-employed, then he should have been running the current business for at least 2 years.
- Age: Most of the banks/NBFCs offer personal loans to applicants in the age group of 18 years to 65 years. Many public sector banks/ NBFCs provide personal loans to pensioners based on their pension income.
- Minimum Income: If you have a high income, it shows that you can repay your loan on time. This also reduces the risk for the bank/lending institution. To apply for personal loan in most of the banks, the salary of the salaried people should be minimum 15000 per month. However, those whose minimum monthly income does not exceed Rs.25,000. Banks give them priority. Whereas, the gross annual income of non-employed / self-employed applicants should be minimum Rs. 2 lakhs. Should be
- Work/Professional Experience: To avail personal loan from multiple banks/lending institutions, salaried applicants must have at least 2 years of experience working with the current company/employer for at least 6 months. On the other hand, if the applicant is non-employed, then he should have been running the current business for at least 2 years.
- Repayment Capacity: Banks/NBFCs generally accept personal loan applications from applicants whose EMI/NMI ratio does not exceed 50% or 55%. It may vary across banks/ loan institutions. The percentage of your monthly income you use to pay the current EMI and the loan EMI you are availing, higher is your EMI/NMI ratio.
