Personal Loan Eligibility

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Banks and Non-Banking Financial Companies (NBFCs) assess whether you qualify for a personal loan based on various factors such as your credit score, age, income, occupation, and your employer's profile. The eligibility criteria for personal loans set by major lenders include these aspects. Here are some tips on how to enhance your eligibility to improve your chances of getting your loan approved.

Best Personal Loan Offers

axis bank icon

Axis Bank

Max. Loan Amt.

Up to ₹40L

Rate of Interest

10.49% - 22%

Tenure up to

1-5 Years

Processing Fee

Upto 2%

Check Eligibility
Low Processing Fee
icici bank icon

ICICI Bank

Max. Loan Amt.

Up to ₹50L

Rate of Interest

10.65% - 16%

Tenure up to

1 - 6 Years

Processing Fee

Up to 3%

Check Eligibility
100% Digital Process* Quick Disbursal
idfc first bank icon

IDFC First Bank

Max. Loan Amt.

Up to ₹1Cr

Rate of Interest

10.75% - 36%

Tenure up to

Upto 5 Years

Processing Fee

Upto 3%

Check Eligibility
Max Loan Amount 100% Digital Process*
hdfc bank icon

HDFC Bank

Max. Loan Amt.

Up to ₹40L

Rate of Interest

10.50%

Tenure up to

Upto 6 Years

Processing Fee

Up to Rs 4,999

Check Eligibility
Max Loan Amount 100% Digital Process*
Kotak Mahindra Bank icon

Kotak Mahindra Bank

Max. Loan Amt.

Up to ₹10L

Rate of Interest

10.99% - 36%

Tenure up to

Upto 6 Years

Processing Fee

Up to 3%

Check Eligibility
Lowest Income requirement 100% Digital Process*
indus bank loan icon

IndusInd Bank

Max. Loan Amt.

Up to ₹50L

Rate of Interest

10.49% - 26%

Tenure up to

1-5 Years

Processing Fee

Upto 3%

Check Eligibility
Lowest Income requirement Quick Disbursal
Federal Bank icon

Federal Bank

Max. Loan Amt.

Up to ₹25L

Rate of Interest

11.49% - 17.99%

Tenure up to

Upto 5 Years

Processing Fee

Up to 3%

Check Eligibility
Lowest Income requirement 100% Digital Process*
aditya birla Bank

Aditya Birla Bank

Max. Loan Amt.

Up to ₹50L

Rate of Interest

30% - 28%

Tenure up to

7 Years

Processing Fee

Upto 3%

Check Eligibility
Max Loan Amount 100% Digital Process*
Tata Capital icon

Tata Capital

Max. Loan Amt.

Up to ₹75L

Rate of Interest

10.99% - 35%

Tenure up to

Upto 6 Years

Processing Fee

₹51

Check Eligibility
Low Processing fee 100% Digital Process*
Bajaj Finserv icon

Bajaj Finserv

Max. Loan Amt.

Up to ₹40L

Rate of Interest

11% - 25%

Tenure up to

Upto 8 Years

Processing Fee

Up to 4%

Check Eligibility
Max Tenure 100% Digital Process*
Piramal Finance icon

Piramal Finance

Max. Loan Amt.

Up to ₹50L

Rate of Interest

12.99%

Tenure up to

Upto 5 Years

Processing Fee

Up to 4%

Check Eligibility
Quick Disbursal 100% Digital Process*
money view Bank

Money View Bank

Max. Loan Amt.

₹5L to ₹10L

Rate of Interest

1.33%

Tenure up to

Upto 5 Years

Processing Fee

2% - 8%

Check Eligibility
Max Loan Amount 100% Digital Process*
cashe bank icon

CASHe Bank

Max. Loan Amt.

Up to ₹4L

Rate of Interest

2.25%

Tenure up to

90-540 Days

Processing Fee

Upto 3%

Check Eligibility
Max Loan Amount
kreditbee icon

KreditBee

Max. Loan Amt.

Up to ₹4L

Rate of Interest

12.25% - 30%

Tenure up to

Upto 2 Years

Processing Fee

Up to Rs 1,250

Check Eligibility
Quick Disbursal 100% Digital Process*
DMI Finance icon

DMI Finance

Max. Loan Amt.

Up to ₹2L

Rate of Interest

12% - 40%

Tenure up to

Upto 5 Years

Processing Fee

Up to 4%

Check Eligibility
Quick Disbursal 100% Digital Process*

Personal Loan Interest Rates Offered By Partner Banks & NBFCs

Banks/NBFCs Interest Rates(p.a.)
Axis Bank 10.49% onwards Apply Now
IndusInd Bank 10.49% onwards Apply Now
IDFC First Bank 10.49% onwards Apply Now
HDFC Bank 10.50% onwards Apply Now
ICICI Bank 10.50% onwards Apply Now
Kotak Mahindra Bank 10.99% onwards Apply Now
Tata Capital 10.99% onwards Apply Now
Bajaj Finserv 11.00% onwards Apply Now
Federal Bank 11.49% onwards Apply Now
DMI Finance 12.00% - 40.00% Apply Now
L&T Finance 12.00% onwards Apply Now
Kreditbee 12.25% - 30.00% Apply Now
MoneyTap 12.96% onwards Apply Now
Piramal Finance 12.99% onwards Apply Now
Aditya Birla 13.00% onwards Apply Now
MoneyView 15.96% onwards Apply Now
Cashe 27.00% onwards Apply Now
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Personal Loan Eligibility Criteria for Salaried & Self-employed Applicants

Particulars For Salaried For Self-employed
Age Limit 18 – 60 years 21 – 65 years
Minimum Income (may vary across lenders) Rs. 15,000 per month Rs. 15 lakh p.a.
Minimum Work Exp./ Business Continuity Usually 1 year with some lenders requiring longer work experience. Usually 3 years of business continuity with some lenders requiring longer period of business continuity
Credit Score Preferably 750 and above

Personal Loan Eligibility Criteria of Top Banks & NBFCs

Lenders Eligible Loan Amount Minimum Eligible Income Eligible Age
Axis Bank Rs 50,000 – Rs 40 Lakh Rs. 15,000 per month 21-60 years
Bajaj Finserv Up to Rs 55 Lakh Rs. 25,001 per month 21-80 years
SMFG India Credit Company Limited (formerly known as Fullerton India Credit Company Limited) Up to Rs 30 Lakh Rs. 20,000 per month -
HDFC Bank Up to Rs 40 Lakh Rs. 25,000 per month 21-60 years
ICICI Bank Up to Rs 50 Lakh Rs. 30,000 per month 23-65 years
IDFC First Bank Up to Rs 1 Crore On a case by case basis 23-60 years
IndusInd Bank Rs 30,000 – Rs 50 Lakh Rs. 25,000 per month 21-65 years
Kotak Mahindra Bank Up to Rs 40 Lakh Rs. 25,000 per month 21-60 years
MoneyView Rs 5,000 – Rs 5 Lakh Rs. 13,500 per month 21-57 years
PaySense Rs 5,000 to Rs 5 Lakh Rs. 18,000 per month 21-60 years
Punjab National Bank Up to Rs 20 Lakh - Above 18 years
Standard Chartered Bank Rs 1 Lakh – Rs 50 Lakh Rs. 22,000 per month 22-58 years
State Bank of India Up to Rs. 20 Lakh Rs. 15,000 per month 21-76 years
Tata Capital Up to Rs. 75 Lakh Rs. 15,000 per month 16-65 years
YES Bank Rs 1 Lakh – Rs 40 Lakh On a case by case basis -

Note: Data as of April 2024

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Personal Loan at Attractive Interest Rates

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Tips to Improve Personal Loan Eligibility

When figuring out if you qualify for a personal loan, there are several factors to take into account. However, there are only a handful of methods to increase your likelihood of loan approval. Here are some suggestions to boost your eligibility for a personal loan:

Maintain a good credit score: Keeping a credit score of 750 or higher increases your chances of getting approved for a personal loan with lower interest rates. A higher credit score also opens up access to instant personal loan offers from lenders, especially if you have existing relationships with them through deposit accounts, loans, or credit cards. Consistently paying your credit card bills and loan EMIs on time, and avoiding applying for multiple loans or credit cards in a short period can gradually improve your credit score.

Consider adding a co-applicant: Including a close family member, like a spouse, parents, or children, in your personal loan application can enhance your eligibility. While not all banks and NBFCs permit co-borrowers for personal loans, having one can improve your chances. Lenders typically consider the credit scores and repayment capacity of both applicants in such cases.

Maintain job stability: Lenders also evaluate your employment history and stability when assessing personal loan eligibility. Frequent job changes may raise concerns for lenders, as it indicates career instability and increases the perceived credit risk. Therefore, it's advisable to avoid changing jobs frequently, especially if you plan to apply for a personal loan soon.

Limit loan applications: When you apply for a personal loan, lenders check your credit report, resulting in hard inquiries that temporarily lower your credit score. Making multiple loan applications within a short period can label you as a 'credit hungry' borrower, leading to potential rejections. Instead of directly applying to various lenders, consider using online financial marketplaces like Mybankingtips.com to compare and choose the best personal loan offer. Credit report requests through such platforms are considered soft inquiries and do not impact your credit score.

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Factors Affecting Personal Loan Eligibility

  • Credit score: People with credit scores of 750 and above are seen as financially responsible, making them less likely to miss payments. Because of this, banks and NBFCs prefer to approve personal loans for individuals with higher credit scores. Additionally, many lenders offer lower interest rates to those with good credit scores. However, some lenders may still provide personal loans to individuals with lower credit scores, though at higher interest rates. It's essential for applicants to check their credit scores regularly and take simple measures to maintain a score as high as possible, ideally close to 900.
  • Employment Type and Employer Reputation: Lenders typically provide personal loans to salaried applicants at lower interest rates compared to self-employed individuals, given the higher income certainty associated with salaried employment. Among salaried applicants, government employees are generally the most favored, followed by those working in reputed corporates and multinational corporations (MNCs). For self-employed applicants, professionals such as Chartered Accountants, doctors, architects, etc., are more likely to secure loans at lower interest rates.
  • Age: Many banks and Non-Banking Financial Companies (NBFCs) extend personal loan options to individuals within the age range of 18 to 65 years. Some public sector banks also provide personal loans tailored for pensioners, considering their pension income as a basis for eligibility.
  • Minimum Income: A higher income signifies a greater ability to repay a loan promptly, indicating lower risk for lenders. For salaried professionals, most lenders set a minimum salary requirement of Rs. 15,000 or higher. However, individuals earning a minimum salary of Rs. 25,000 are often preferred by lenders. Self-employed individuals typically need a gross annual income of Rs. 2 lakh or more to qualify for a personal loan. It's important to note that some lenders haven't publicly disclosed the minimum salary or monthly income requirements for personal loan applicants, whether they are self-employed professionals or non-professionals.
  • Work/Business Experience: Some lenders say that if you work for a year or more, you can apply for a personal loan. Others might ask for a longer work history. Certain lenders may also want you to have spent a specific time working for your current employer to qualify for the loan. If you're self-employed or a professional, you usually need to have been running your current business for at least 3 years to be eligible for an unsecured personal loan.
  • Repayment Capacity: Banks and Non-Banking Financial Companies (NBFCs) generally approve personal loans for applicants whose EMI/NMI ratio is around 50% to 55%, though this can differ between lenders. This means that the combined EMI payments for existing loans and credit cards, along with the expected EMI for the new loan, should not surpass 50% of their total income.

Before you decide on a personal loan, check out the Mybankingtips Personal Loan EMI calculator. It helps you figure out the best monthly repayment amount based on what you can afford. Just make sure that the total EMI for all your loans, including the new one you're considering, doesn't go over half of your monthly income.

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FAQs

1. Can I apply for a personal loan online with a low salary?

Yes, even if your salary is not very high, you can apply for a personal loan. Some lenders don't have a specific minimum salary requirement for eligibility. Just keep in mind that the approved loan amount might be on the lower side, and the interest rate could be a bit higher.

2. What is the minimum salary to be eligible for an SBI personal loan?

As of now, you need a minimum salary of Rs. 15,000 to qualify for an SBI personal loan. It's important to note that meeting this salary requirement doesn't ensure automatic approval of your loan application.

3. How much personal loan can I get based on my salary?

Lenders usually figure out how much personal loan you can get using either the Multiplier Method or the EMI/NMI Ratio, or sometimes a mix of both. In the Multiplier Method, they calculate the loan amount by taking a certain number of times (usually betwenen 10 to 24) your net monthly income. The EMI/NMI Ratio shows the part of your monthly income set aside for your existing EMIs and the new loan's EMI. Lenders generally like approving personal loans for people whose EMI/NMI ratio is around 50-55%.Calculating personal loan eligibility with these methods can be a bit complicated and take time. That's why many lenders offer online calculators. These tools give you a quick idea of how much personal loan you can get based on simple details like your monthly income, loan duration, personal loan interest rate, and any existing EMIs you have.

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