Personal Loan · Guide
Personal loan eligibility criteria
Banks look at four things: your age, your monthly income, your employment stability, and your credit history. Meet the thresholds on all four and approval is usually smooth. Miss one and rates go up or the application is declined.
By FinancePaisa Editorial Team · Research & editorialUpdated · 2 min read
On this page (5 sections)
Standard eligibility parameters
| Parameter | Salaried | Self-employed |
|---|---|---|
| Age | 21 to 60 years | 25 to 65 years |
| Minimum income | ₹20,000 – ₹25,000 / month | ₹3 lakh net profit / year |
| Work experience | 2+ years, 6+ months at current job | 3+ years in business |
| Credit score | 720+ preferred, 700 acceptable | 720+ preferred |
Age
- Salaried
- 21 to 60 years
- Self-employed
- 25 to 65 years
Minimum income
- Salaried
- ₹20,000 – ₹25,000 / month
- Self-employed
- ₹3 lakh net profit / year
Work experience
- Salaried
- 2+ years, 6+ months at current job
- Self-employed
- 3+ years in business
Credit score
- Salaried
- 720+ preferred, 700 acceptable
- Self-employed
- 720+ preferred
Fixed obligation to income ratio (FOIR)
Most banks cap your total EMIs (existing + new) at 40-50% of your net monthly income. If your take-home is ₹80,000 and your existing EMIs are ₹20,000, a bank at 50% FOIR can approve a new EMI of up to ₹20,000.
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How to improve your chances
- Clear high-cost credit-card outstandings before applying
- Do not apply to multiple lenders in the same week
- Ensure your CIBIL report has no inaccurate late-payment marks
- Show a stable job – recent job changes reduce approval odds
- Consider a co-applicant if your income is borderline
Frequently asked questions
Sources & references
- RBI — Master Direction on Regulatory Framework for Retail Lending — Reserve Bank of India
- CIBIL — How your score affects loan approval — TransUnion CIBIL
- Income Tax India — e-filing portal (for ITR proof) — Income Tax Department, GoI
Rates, fees, eligibility, and product terms cited on this page reflect the sources above at the time of publication and may have changed since. Always verify directly with the lender or regulator.