Personal Loan Eligibility Calculator

Personal Loans

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. When it comes to availing the same, it would not be wrong to say that there are various renowned lenders available in the market that offer you this credit facility. But, every lender before offering you the said loan amount calculates your actual loan eligibility, i.e. how much loan amount you are eligible to get from a lender.

Well, as both salaried as well as self-employed individuals are eligible to apply for a personal loan, hence their loan amount eligibility also differs, depending upon the various factors. However, to cut the long story in short, you can say that a personal loan eligibility is an eligibility of the maximum loan amount that a person can get from the bank if he/she is applying for a personal loan.

Personal Loan Eligibility Criteria

If you are interested in availing the personal loan from your favourite lender, there are certain eligibility norms you need to keep in mind. Different lenders have different eligibility norms while offering you this credit facility. So, the moment you decide to avail a loan, it’s better that you check the eligibility also. However, to keep you away from that hassle, here we have a general criteria for a personal loan outlined below:

CriteriaDetails
Minimum Age21 Years
Maximum Age58 Years
Minimum Income₹ 4,000 – ₹ 20,000
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 ₹ 50 lakhs
Credit Score350-900

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. As the repayment capacity of the borrower in that case 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 automaticlaly 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.

Documents Required for Personal Loan

The general documentation required to apply for a personal loan is as follows:

For Salaried Individuals

  • Identity Proof – PAN Card (mandatory)/ Voter ID Card/ Driving License, Aadhaar Card, etc.
  • Duly signed loan application form
  • 2 Passport size photos
  • Address proof – Driving License/Passport/ Voter ID Card/Aadhaar Card, etc.
  • Latest salary slips and Form 16
  • IT returns for the last 2 years
  • Processing fee cheque
  • Last 3 months bank statements

For Self-employed Individuals and Professionals

  • Identity Proof – PAN Card (mandatory)/ Voter ID Card/ Driving License, Aadhaar Card, etc.
  • Duly signed loan application form
  • Passport size photos
  • Address Proof (Telephone Bill/Electricity Bill/Lease Deed, etc.)
  • IT returns for the last 2 years
  • Last 6 months bank statements
  • Proof of continuity of business
  • Business ownership proof
  • Processing fee cheque

Who can take Personal Loan?

In general, any individual who is having a good income source, good credit history and is between the age of 21 years and 65 years can take a personal loan. Banks or other financial institutions prefer applicants who have a good credit history and have a good relationship with the employer.

For eg., If a salaried person wants to take a personal loan, his/her loan eligibility will be calculated on the basis of his/her monthly in-hand income, age and work experience. On the other hand, if a self-employed personal wants to take a personal, annual income, age and the type of work along with the work experience will be counted. Some lenders offer a personal loan to salaried individuals with salary less than ₹ 15,000. The age limit set for the personal loan is in general between 21 years to 65 years.

Personal Loan Eligibility in Top Banks

Almost all private and public sector banks provide a personal loan at attractive rates and flexible tenure. A borrower can choose the best-suited bank or NBFCs as per their own choice and requirement provided they are eligible for it. Here are the top banks in India that provide higher loan amount at attractive interest rates and flexible tenures.

SBI Personal Loan Eligibility

SBI offers a personal loan to salaried as well as self-employed individuals under three schemes namely Xpress Credit Personal Loan, SBI Saral Personal Loan and Loan to Pensioners. The bank offers loan for a minimum of ₹ 24,000/- under the Term Loan and of a minimum of ₹10 lakhs under Overdraft facility.

Who is eligible for SBI Personal Loan?

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 ₹ 7,500/-
  • Maximum age at the maturity of the loan is 76 years.

HDFC Personal Loan Eligibility

Be it any financial need, HDFC personal loan is calculated on the basis of the age, income and professional experience of the loan applicant. If a borrower comes under the eligibility criteria set by the bank, getting a personal loan gets smoother.

Who is eligible for HDFC Personal Loan?

The eligibility criteria for 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 ₹ 12,000/-.

ICICI Bank Personal Loan Eligibility

ICICI personal loan is a multi-purpose loan available for salaried as well self-employed professionals. The bank offers personal loan with the flexible repayment facility up to 5 years. A salaried individual can get the loan amount up to ₹ 20 lakhs whereas the loan amount limit is up to₹30 lakhs for a self-employed professional.

Who is eligible for ICICI Bank Personal Loan?

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
  • Minimum Net Monthly Income of ₹ 25,000/- for Delhi & Mumbai and ₹ 20,000/- for Bangalore, Pune, Chennai, Hyderabad and 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

Axis Bank personal loan can be taken by salaried residents as well as NRIs. The banks give the flexibility to take the loan amount up to ₹ 15 lakhs with minimal documentation and loan tenure up to 5 years. The personal loan eligibility calculator Axis Bank considers the age, income and profession of the applicant.

Who is eligible for Axis Bank Personal Loan?

For a personal loan, an individual must meet up the below-given eligibility criteria:

  • 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 instant personal loan in India, Kotak Mahindra Bank personal loan is one of the best options. The bank has the facility to provide the maximum loan amount to ₹ 15 lakhs with repayment option up to 5 years.

Who is eligible for Kotak Mahindra Bank Personal Loan?

The eligibility criteria to take a personal loan from Kotak Bank is:

  • 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

How to calculate Personal Loan Eligibility?

There is a certain loan amount limit decided on the basis of the factors set by the banks/NBFCs. On the basis of those factors, an individual can get a personal loan smoothly. 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 -14.5%

Monthly EMI- ₹ 2,353

Now let’s make a reverse calculation on his monthly saving of ₹ 30,000, considering ₹ 2,353 to pay a loan of ₹ 1 lakh. So, the calculation of personal loan will be:

₹ 1 lakh x 30,000/2353 = ₹ 12 lakhs

Personal loan eligibility amount – ₹ 12 lakhs

You May Also Read