Personal Loan Eligibility Calculator

Personal Loan Rates EMI 2017 10195 views

A personal loan is an unsecured loan with the facility of getting high loan amount at attractive interest rates and flexible tenure. If a borrower is stuck in some unavoidable financial need, a personal loan is the best option for him/her to avail. Now that GST has entered the Indian taxation market, the charges like processing fees, service charges, prepayment charges, etc. applicable on personal loan have marginally increased.

Personal Loan Eligibility Criteria

To get a personal loan, there is certain eligibility criterion you need to match. However, this eligibility is subject to change from one lender to another. However, the general criteria for a personal loan is outlined below:

CriteriaDetails
Minimum Age21 Years
Maximum Age58 Years
Minimum Income₹ 5,000
Employment TypeSalaried/Self-employed Professionals Non-Professionals
Work ExperienceAt least 2 Years of work experience with a minimum of 1 Year in present organization
Maximum Loan AmountUp to ₹ 30 lakhs
Credit Score350-900

Personal Loan Eligibility in Top 5 Banks

Almost all private and public sector banks provide personal loans as it is most demanding loans in India. As a result, it might be a little difficult to make a choice that suits your purpose. So, here are the top banks in India that provide personal loans at low-interest rates and instant approval.

SBI Personal Loan Eligibility

The personal loan eligibility for SBI is as follows:

  • Salaried employees (Central and State Government, Quasi-Government, Central PSUs, Profit making State PSUs, Educational Institutions of National Repute, Selected Corporates)
  • Minimum Net Monthly Income of ₹5,000/-
  • Maximum age at the maturity of the loan is 76 years.

HDFC Personal Loan Eligibility

The eligibility criteria for a personal loan from HDFC is as follows:

  • Minimum age of 21 years
  • Maximum age of 60 years
  • Minimum 2 years of work experience with at least 1 year in the present organization
  • Minimum Net Monthly Income of ₹ 15,000 and 20,000.

ICICI Bank Personal Loan Eligibility

The eligibility criteria for taking a personal loan from ICICI Bank is different for salaried and self-employed individuals.

For Salaried Individual

  • Age between 23 years to 58 years
  • Salaried individuals with minimum monthly income ₹17,500 (₹ 25,000 for applicants residing in Mumbai & Delhi; ₹ 20,000 for applicants residing in Chennai, Hyderabad, Bangalore, Pune & Kolkata)
  • 2 years of work experience
  • 1 year stay at present residence

For Self-employed Individuals and Professionals

  • Age between 28 years and 65 years (minimum age of 25 years for Doctors)
  • Minimum turnover of ₹ 40 lakhs for non-professionals and ₹ 15 lakhs for professionals
  • Minimum profit of ₹ 2 lakh after tax for proprietorship and self-employed individuals
  • Minimum profit of ₹ 1 lakh for non-professionals
  • At least 5 years of experience in current business (3 years for Doctors)
  • 1 year stay at present residence

Axis Bank Personal Loan Eligibility

The personal loan eligibility at Axis Bank is as follows:

  • Salaried employees (Doctors, Employees of Public and private limited companies, Public and private limited companies, Government sector employees including Public Sector Undertakings and central and local bodies)
  • Minimum age of 21 years
  • Maximum age of 60 years
  • Minimum Net Monthly Income of ₹ 15,000/-

Kotak Mahindra Bank Personal Loan

To avail the personal loan from Kotak Mahindra Bank, you must match the criteria as mentioned below:

  • Net Monthly Income of ₹25,000/-
  • The individual must be a graduate
  • Living in the present city from at least 1 year
  • Minimum 2 years of work experience

Personal Loan Eligibility Calculator

Even though there is a general criterion to apply for the loan, the loan amount limit is decided on the basis of the factors set by the banks/NBFCs. To get a clear idea about a general loan amount that a person can get, let us take an example.

Let us assume that a man is working in a reputed organization and earns a net monthly income of ₹60,000/-. Now, after meeting all his financial liabilities, he can easily save 40%-50% (₹24,000- ₹30,000/-) of his monthly salary. The borrower would think how much personal loan can I get on my salary?

Now, here the bank will assume that he is saving 50% of his monthly income i.e. ₹ 30,000. So, this saving can be used to repay the loan amount in the form of monthly EMIs. So, the personal loan eligibility can be calculated as follows:

Required Loan Amount-₹1 lakh

Loan Tenure- 5 years

Rate of Interest -10.99%

Monthly EMI- ₹2,174

Now let’s make a reverse calculation on his monthly saving of ₹30,000, considering ₹2,174 to pay a loan of ₹1 lakh. So, the calculation of personal loan will be:

₹ 1 lakh x 30,000/2174 = ₹13.80 lakhs (approx.)

Personal loan eligibility amount – ₹13.80 lakhs (approx.)

Factors Affecting Personal Loan Eligibility

Here are some of the main factors that affect the personal loan eligibility of the borrower:

Monthly Income: A regular and good source of income is one of the most important factors that a borrower can get from the banks or NBFCs. Hence, a good in-hand monthly income is most likely helps you in getting a higher loan amount, hence increases your eligibility

Age: Just like any other loan, a personal loan borrower must fulfill the age criteria which is variable depending upon the banks. Majorly, the age criteria for a loan borrower is between the age of 21-58 years. However, some lenders have the upper limit of 65 years as well.

Monthly Expenses: To get a personal loan, monthly expenses like investments and other responsibilities of the borrower are considered by the banks. If the monthly expenses are higher, getting high loan amount can be hard, which ultimately decreases your loan amount eligibility.

Any Other Loan: Banks often find it easier to lend money to the borrower’s who have no other running loan. Since the repayment capacity of the borrower is higher as he/she does not have any other financial liability to look after.

Credit History: The credit history of the applicant is most important for lenders in availing the loan to the borrowers. The better you credit history is, the good CIBIL you have, which automatically help in availing you the maximum loan amount.  So, always try to maintain a good CIBIL score, i.e. 750 or above out of 900 to increase your loan eligibility.

Job Stability: A good job stability is another important factor when it comes to a personal loan. A person who has good working experience with a minimum of 2-3 years can get a hassle-free loan.

Relationship with the Bank: Maintaining a healthy relationship with the banks/NBFCs is very important to get this credit facility smoothly. Since there are chances that the borrower can get the higher loan amount at low-interest rates.

Category of Your Employer: If the borrower is working in an MNC or the employer comes under fortune 100 companies, the loan eligibility increases as the loan repayment capacity also increases.

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