Personal Loan Eligibility


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.

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 February 2026

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.

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.