Personal loan is an unsecured loan that does not require any kind of collateral or security while applying for it. There is a lot of risk involved from the lenders side as their money is at stake. Hence, they take many factors into consideration to decide if an individual is creditworthy/eligible or not.
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Personal Loan Eligibility Criteria
The following factors are taken into consideration by lenders before offering a personal loan to an individual. These factors may vary from bank to bank but remains the same more or less.
- Credit score: A credit score is a 3 digit number that acts as a validation of how you have handled the repayments of your credit cards and personal loans in the past. This score is maintained by the credit bureaus and ranges from 300 to 900. A credit score of 750 or above is preferred by the banks when it comes to offering a personal loan. If your credit score is less than 750, there might be chances that your personal loan application gets rejected, which will ultimately reduce your score by another few points. It is advisable to improve your credit score before applying.
- Employment: Banks offer a personal loan to both salaried professionals working in private, government or multinational companies, self-employed individuals and professionals like businessmen, CA, CS, doctors, architects, etc. Salaried professionals working in renowned organisations or government employees are preferred by lenders for a personal loan because of their job stability.
- Age: Most banks offer a personal loan to an individual in the age group of 18 years to 60 years.
- Minimum income: The minimum monthly income criteria set by most of the banks for salaried professionals is Rs. 15,000. Although, individuals with minimum monthly income of Rs. 25,000 are preferred more by the banks. And for self- employed individuals, a gross annual income of minimum Rs. 5 lakh is needed.
- Total experience: A salaried professional with a minimum work experience of 2 years with minimum 6 months in the current organisation is preferred by the lenders and a self- employed individual with minimum 2 years in current business is preferred.
Personal Loan Eligibility by Top Banks and NBFCs
|Banks||Loan Amount||Tenure||Age Limit|
|Aditya Birla Finance Limited||Rs. 25,000 to Rs.50 Lakh||Upto 60 Months||23 to 55 Years|
|Axis Bank||Rs. 50,000 to Rs. 15 Lakh||12-60 Months||21 to 60 Years|
|Bajaj Finserv||Up to Rs. 25 Lakh||12-60 Months||23 to 55 Years|
|Bank of Maharashtra||Rs. 1.50 Lakhs||Up to 36 Months||21 to 60 Years|
|CASHe||Rs. 10,000 to Rs. 2 Lakh||15-180 Days||Above 18 Years|
|Canara Bank||Up to Rs. 3 Lakh||12-60 Months||Above 18 Years|
|Citi Bank||Up to Rs.30 Lakh||12-60 Months||Above 18 Years|
|Corporation Bank||Up to Rs.3.50 Lakh||Up to 60 Months||Above 18 Years|
|Faircent||Rs. 10,000 to Rs. 10 Lakh||6 – 36 Months||Above 18 Years|
|Fullerton India||Up to Rs. 40 Lakh||Up to 48 Months||21 – 60 Years|
|HDB Financial Services||Up to Rs. 20 Lakh||12-60 Months||21 to 65 Years|
|HDFC Bank||Up to Rs. 40 Lakh||12-60 Months||21 to 60 Years|
|ICICI Bank||Up to Rs. 20 Lakhs||12-60 Months||23 to 58 Years|
|IDFC First Bank||Rs 1 Lakh to Rs 25 Lakh||12-60 Months||23 to 58 Years|
|IDBI Bank||Rs. 50,000 to Rs. 10 Lakh||12-60 Months||21 to 60 Years|
|IIFL||Up to Rs. 25 Lakh||12-60 Months||25 to 60 Years|
|InCred Finance||Rs. 75,000 to Rs. 15 Lakh||12-60 Months||Above 18 Years|
|Indiabulls||Rs. 1,000 to Rs. 15 Lakh||3 – 24 Months||Above 18 Years|
|Indian Overseas Bank||Up toRs. 5 Lakh||Up to 60 Months||Up to 60 Years|
|IndusInd Bank||Rs. 50,000 to Rs. 15 Lakh||12-60 Months||21 to 60 Years|
|Kotak Mahindra Bank||Rs. 50,000 to Rs. 15 Lakh||12-60 Months||21 to 58 Years|
|Karur Vysya Bank||Up to Rs. 10 Lakh||12-60 Months||Above 18 Years|
|Money View||Rs. 10,000 to Rs. 5 Lakh||3 – 36 Months||Above 18 Years|
|Oye Loans||Rs. 10,000 to Rs. 1 Lakh||12 Months||Above 18 Years|
|PaySense||Rs. 5,000 to Rs. 2 Lakh||3 – 24 Months||21 to 60 Years|
|Punjab National Bank||Rs. 50,000 to Rs. 10 Lakh||Up to 60 Months||Above 18 Years|
|RBL Bank||Rs.1 Lakh to Rs.20 Lakh||12-60 Months||25 to 60 Years|
|Standard Chartered Bank||Rs.1 Lakh to Rs.30 Lakh||12-60 Months||Above 18 Years|
|SBFC||Up to Rs 10 Lakh||Up to 60 Months||Above 18 Years|
|State Bank of India||Rs. 25,000 to Rs.15 Lakh||12-60 Months||Above 18 Years|
|Tata Capital||Rs. 75,000 to Rs. 25 Lakh||12 – 72 Months||22 to 58 Years|
|Union Bank of India||Up to 10 Lakh||12-60 Months||Above 18 Years|
|Vijaya Bank||Up to Rs. 10 Lakh||Up to 60 Months||21 to 58 Years|
|YES Bank||Rs 1 Lakh to Rs 40 Lakh||12-60 Months||22 to 58 Years|
Note: The figures given in the table are indicative and are subject to change at the banks’ or NBFCs’ discretion without prior information.
Why to Use Paisabazaar Personal Loan Eligibility Calculator?
Following are some of the key benefits of using personal loan eligibility calculator provided by Paisabazaar:
- Feasible Loan Amount Identification: With Paisabazaar’s calculator for loan eligibility, applicants can easily calculate the exact amount they are eligible to get as a personal loan from numerous banks. The eligibility to get the loan is based on various factors, including your employment status, net salary, loan tenure, and many more.
- Quick and Easy: Within a couple of minutes you can get your loan eligibility status. To get the results, you just need to furnish details regarding net monthly income, existing EMIs, rate of interest, and loan tenure.
- Reliable Results: The loan eligibility calculator is specially designed by the experts in order to calculate eligibility for a personal loan and it provides accurate information that helps an individual to opt a loan that is appropriate in terms of loan amount, tenure and interest rate.
- Easy Comparison: If you are perplexed between the loan offerings of two different lenders, you can easily compare between the two on the basis of key criteria, such as maximum loan amount, applicable interest rate, tenure, as well as processing fees and additional benefits, if any.
- Time Saving: With speedy results and the easy procedure of determining eligibility, Paisabazaar’s eligibility calculator simply eliminates the time taking process of contacting a particular bank in order to check loan eligibility.
Therefore, before applying for personal loan from any lender, it is always recommended to check related details from Paisabazaar’s personal loan eligibility calculator. This way, you will gain a good insight and have better understanding of your loan requirements and will be able to choose the appropriate one after making a comparison.
How to Use Paisabazaar Personal Loan Eligibility Calculator?
Paisabazaar’s personal loan eligibility calculator is easy to use and helps you avail the right personal loan for you without any hassle. Here is how you can use the Paisabazaar personal loan eligibility calculator:
- Go to personal loan eligibility form on top of the page
- Fill in your basic details like occupation, monthly income, loan amount, mobile number and current city
- Click on proceed and you will be redirected to another form
- Fill in the form that asks for information like your company name, salary received, gender, full name, total EMI you pay currently and click on view best offers
- You will be redirected to a page showing best offers on personal loan according to the details that you have entered.
What Are the Documents Required to Be Eligible for a Personal Loan?
The documents required to avail a personal loan are different for a salaried professional and a self- employed individual. Here is the list of documents required:
For salaried professionals:
- Proof of Residence: Leave and License Agreement / Utility Bill (not more than 3 months old) / Passport (any one)
- Proof of Identity: Passport / Driving License / Voters ID / PAN Card (any one)
- Latest 3 months Bank Statement
- Salary slips for last 3 months
- 2 passport size photographs
For self- employed individual:
- KYC Documents: Proof of Identity; Address proof; DOB proof
- Proof of Residence: Leave and License Agreement / Utility Bill (not more than 3 months old) / Passport (any one).
- Income proof (audited financials for the last two years)
- Latest 6 months Bank statement
- Office address proof
- Proof of residence or office ownership
- Proof of continuity of business
How to Boost Your Personal Loan Eligibility?
- You can follow the below steps to improve your chances of personal loan approval: Pay your existing loans: When you wish to avail a personal loan, make sure that you pay your existing loans or at least decrease the number so that your debt to income ratio remains below 50%. If your debt to income ratio is above 50%, the lenders might doubt your repayment ability and might not consider you eligible for another loan.
- Maintain your credit score: As mentioned above, an individual with a credit score of 750 or above is preferred by the lenders. If you maintain your credit score, you would be considered creditworthy by the lenders.
- Variable pay: Ensure to keep a record of perks you earn at work or variable pay that you get. This record might be considered by the lenders while calculating your eligibility.
- Go for longer tenure: When you choose a longer tenure to repay the personal loan, it increases your eligibility as implicates that you have the ability to repay the loan for a longer period of time in the future. You can calculate your monthly EMI using Paisabazaar’s personal loan EMI calculator.
- Pay the credit card bills timely: If you pay your credit card bills timely, it reflects that you are disciplined with your payments hence it boosts your eligibility.
- Rental income: If you own a commercial or a residential income that you have given for rent then that rental income can be an add-on and can enhance your loan value.