Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: 4.8
Article rating: 5.0
Article rating: 3.0
Article rating: No rating
Article rating: 5.0
Article rating: No rating
Article rating: No rating
Article rating: 4.5
Article rating: No rating
Article rating: No rating
Article rating: 4.2
Article rating: 5.0
Article rating: 4.0
Article rating: No rating
Article rating: No rating


Are you eligible for a personal loan?

Author: Team Finapolis/Tuesday, February 27, 2018/Categories: Loans

Are you eligible for a personal loan?

Vikas (21) had been working with an IT company in Hyderabad and earning Rs 15,000 a month when he approached a private bank for a personal loan to fund his sister’s wedding. Rahul (25) had just shifted base to a new city and had approached a public sector bank for a personal loan to buy furniture for his new home. Digvijay (20) thought he would take a loan from the bank where his father maintained an account for him to do something special for his girlfriend this Valentine’s Day. The fates of these three individuals were intertwined as their personal loan plea would be rejected by the banks and for the same reason i.e eligibility.

It is important to know your personal loan eligibility before approaching the bank. A personal loan is an unsecured loan offered by most banking and non-banking financial institutions. Knowing the eligibility criteria for the personal loan helps speed up the application process. Different banks have different eligibility criteria such as income, age, credit score, employment status. Apart from this, they also require proper documentation before sanctioning the loan. Here are some quick picks on how to check personal loan eligibility:

  • The minimum age limit for applying for a loan is 21 years and 60 years is the upper limit. This is the standard age bracket, but it can slightly vary from bank to bank.
  • The age bracket also depends on the individual’s occupation. Salaried individuals have to be between 21 and 58 years. For self-employed individuals and businessmen the age eligibility is 25 and 65 years
  • Both salaried and self-employed individuals are eligible to apply for a personal loan
  • Doctors, CAs, employees of private limited companies and public sector undertakings, including state, central and local bodies are eligible for the loan
  • The individual must have a job for at least 2 years or have completed a minimum of 1 year with the current employer
  • One must earn a minimum of Rs15,000 net income per month. The minimum income is sometimes as low as Rs 4,000 as well, depending upon where you stay
  • If you a resident of a metro city such as Mumbai, Delhi, Hyderabad, Bengaluru, Chennai, Pune or Kolkata, your minimum income is expected to be at least Rs 20,000 per month
  • Your CIBIL score is a huge factor when applying for a personal loan. You CIBIL score will be assessed to evaluate your eligibility. Any score between 350 and 900 points is considered good enough to be given a loan. But it is preferred to have a score of above 750 to get the best interest rates.

Your minimum and maximum lending amount is fixed by the bank depending on your income levels and capacity to pay back the loan and any existing EMIs. The loan amount disbursed depends from one bank to another. The maximum loan amount can go up to Rs 50 lakhs. The loan tenure is usually for 12- 48 months. The tenure can be extended to 72 months.

There are certain documents that are required to be submitted to procure a personal loan. Some of the other documents that you should keep ready before applying are:

  • Photograph
  • Identity proof
  • Address proof
  • Bank statement of previous 3 months or passbook of previous 6 months
  • Salary slip or the current dated salary certificate

It is better to judge your personal loan eligibility criteria before approaching the bank with an application. If Vikas, Rahul and Digvijay referred to in the beginning had done the same then there would not have been any impediment to fulfilling their dreams.

Print Rate this article:
No rating

Number of views (251)/Comments (0)

rajyashree guha

Team Finapolis

Other posts by Team Finapolis
Contact author

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free