Personal Loan Eligibility Calculator 2019

Last Updated 16th Jun 2019

Personal Loan Eligibility Check

6th June 2019 – RBI cuts repo rate by 25 bps to 5.75%

Main factors that determine eligibility for personal loan are

ProfessionSalaried persons working in government, private or MNC companies and self employed professionals like Doctors, CA, CS, Architects
Eligible Age 21 years to 60 years
Minimum Income for Loan EligibilityRs. 25,000 per month for salaried; Rs. 5 Lakh gross annual receipts for professionals
Work Experience Required3 years and above
Experience in Current CompanyVaries from 1 month to 1 year
Minimum CIBIL Score650
Maximum EMI as percent of Income65%
Personal Loan Eligibility Calculator

Personal Loan Eligibility Criteria, All Banks in India

BankEligible Loan Amount for Max TenureAge of the borrowerMinimum Work Experience
SBI Personal LoanRs. 15 Lakh for 48 Months21 to 58 Years24 Months
HDFC Bank Personal LoanRs. 50 Lakh for 60 Months21 to 60 Years24 Months
ICICI Bank Personal LoanRs. 30 Lakh for 60 Months23 to 58 Years24 Months
Bajaj FinservRs. 25 Lakh for 60 Months27 to 58 Years36 Months
CitibankRs. 30 Lakh for 60 Months23 to 60 Years36 Months
IDFC First BankRs. 25 Lakh for 60 Months23 to 58 Years12 Months
Axis BankRs. 15 Lakh for 60 Months21 to 60 Years12 Months
Tata CapitalRs. 20 Lakh for 60 Months21 to 58 Years24 Months
Fullerton IndiaRs. 20 Lakh for 48 Months21 to 58 Years36 Months
IndusInd BankRs. 25 Lakh for 60 Months21 to 60 Years24 Months
Kotak BankRs. 15 Lakh for 60 Months21 to 55 Years12 Months
RBL BankRs. 20 Lakh for 60 Months25 to 60 Years36 Months
IIFLRs. 25 Lakh for 60 Months25 to 60 Years36 Months
HDB FinancialRs. 20 Lakh for 60 Months21 to 60 Years24 Months
Indian Overseas BankRs. 15 Lakh for 60 Months21 to 58 Years36 Months
Corporation BankRs. 2.50 Lakh for 36 Months21 to 58 YearsN/A
PNBRs. 15 Lakh for 60 Months21 to 58 YearsN/A
Syndicate BankRs. 2 Lakh for 60 Months21 to 58 YearsN/A
IDBI BankRs. 10 Lakh for 60 Months22 to 60 Years36 Months
Allahabad BankRs. 7.50 Lakh for 60 Months21 to 58 Years24 Months
Bank of BarodaRs. 2 Lakh for 36 Months21 to 60 Years36 Months
Andhra BankRs. 5 Lakh for 60 Months21 to 55 YearsN/A
Indian BankRs. 5 Lakh for 36 Months21 to 58 YearsN/A
Federal BankRs. 10 Lakh for 48 Months21 to 55 Years36 Months
Bank of MaharashtraRs. 1.50 Lakh for 36 Months21 to 60 Years36 Months
Karur Vysya BankRs. 10 Lakh for 36 Months25 to 60 Years24 Months
Standard Chartered BankRs. 30 Lakh for 60 Months23 to 58 Years36 Months
Union Bank of IndiaRs. 5 Lakh for 60 Months21 to 58 YearsN/A
Canara BankRs. 3 Lakh for 48 Months21 to 60 Years36 Months
Yes BankRs. 20 Lakh for 60 Months21 to 60 Years24 Months

Personal Loan Eligibility

You may be eligible for personal loan from one or more banks in India if you meet the following eligibility conditions:

Minimum and Maximum Age
  • 21 Yrs. - 65 Yrs.
Note: However, many banks require minimum age of 23 years
Loan Amount
  • Upto Rs. 50 lakhs. Most banks restrict maximum eligibility to Rs. 25 lakhs
Note: Some banks also restrict the maximum eligibility at 10 – 22 times net monthly income
Net Monthly Income

For salaried individuals, timely and regular salary credit is important to get eligible for loan.

  • Min. Rs. 15,000 (For Semi & Rural ) and 20,000 (For Metro)
Note: Some banks specify higher minimum income requirement for people staying on rent
Employment Type
  • Salaried customers have more choices for personal loan banks
  • Interest rates are typically in the range of 10.99% to 33.00% per annum
  • Personal loans to self employed professionals and businessmen are classified as Business Loan
Current EMI's
  • Existing loans EMIs can reduce the eligibility of getting new loan
  • Pay your existing debts first and then apply for new loan
Minimum Work Experience
  • 3 years of total work experience. Some banks also give loans with 1 year of total experience
  • Tenure from the current company should not be less than 6 – 12 months
CIBIL Score for Personal Loan
  • 650 & more credit history
Note: Most banks avoid giving loans if you have low credit score
Methods of calculating Eligibility

Personal loan eligibility can be calculated in two ways:

  • Multiplier Method
  • FOIR (Fixed Obligation to Income Ratio)

Multiplier Method – Under this method, banks apply a multiplier to your net take home salary to calculate your loan amount eligibility. The multiplier applied is a function of your take home salary and company profile. Higher the salary and more reputed the company, higher is the multiplier and your loan eligibility. Generally, banks apply a multiplier of 9 to 22 and these multipliers are defined for different levels of salary and internal categorization of companies by the bank. Higher the category to which a company belongs, higher will be the loan amount eligibility and lower the personal loan rate of interest.

Illustration: Mr. A has a monthly take home salary of Rs 40,000 with no other EMIs to pay. He works with a company which is a Category A company as per the bank. In this case, the bank applies the highest multiplier of 20 to calculate his loan amount eligibility. At a multiplier of 20, the loan amount Mr. A will be eligible for is Rs 8 Lakh (Rs 40,000*20). This means Mr. A can get a maximum amount of Rs. 8 Lakh from the bank.

FOIR (Fixed Obligation Income Ratio) – Under this method, your loan amount eligibility is calculated on the basis of maximum EMI or monthly installments you can service with respect to net income after accounting for other fixed expenses such as rent and EMIs. Banks or NBFCs generally accept 50 – 75% of your net income as EMI, existing fixed obligations and credit card outstanding. If the obligations exceed bank’s norms, then bank will either reduce your loan amount or will increase the tenure of your loan.
The bank calculates your eligibility such that fixed obligations (including the EMI for the new loan) do not exceed 50% of your income. This percentage can vary from lender to lender. For high income borrowers, this can range upto 65%.

Illustration: Mr. A has a take home salary of Rs. 50,000 and he wants to take a personal loan. He has no other fixed obligations or EMIs to pay. The bank has a maximum FOIR requirement of 50% and hence, in this case will lend an amount where maximum EMI is restricted to Rs.25,000 (50% of Mr. A’s salary), which at the lowest rate of interest 10.99% and longest tenure of 5 years, translates in to a loan amount of Rs. 11.50 Lakh.
In the same example, if Mr. A has another home loan EMI to pay of Rs. 10,000, then he will be eligible to take a personal loan of amount where his monthly EMI does not exceed Rs. 15,000. In this case, Mr. A is eligible to take a maximum loan of Rs. 4.60 Lakh at the longest tenure of 5 years and lowest rate of interest 10.99%

Banks will calculate your eligibility under multiplier and FOIR method and will approve a loan amount which is lower of the loan eligibility calculated under the two methods.

Illustration on Personal Loan
Maximum Annual Percentage Rate (APR)10.99% to 22%
Representative example of the total cost of the loan, including all applicable fees
Here is an illustration of the total cost of the loan:
  • Total amount borrowed: Rs. 1 Lakh
  • Time period: 12 months to 60 months
  • Personal Loan Interest Rate: 10.99% to 22%
  • Processing Fee payable : Upto Rs. 2,000
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From Rs. 2,174 for a months Rs. 1 Lakh loan at 10.99% (lowest rate, longest time period) to Rs. 9,359 for a 12 months Rs. 1 Lakh loan at 22% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Annual Percentage Rate (APR) of charge including all applicable fees: 10.99% to 22%
  • Total cost payable over loan tenure: Rs. 14,313 for 12 months loan to Rs. 32,424 for 60 months loan

FAQ on Personal Loan Eligibility Calculator

What is the personal loan eligibility for salaried employees?

Loan eligibility for salaried employees depends on the factors such as:

  • Age: min. 21 years and max. 65 years (may vary bank to bank)
  • Salary: minimum 18,000 per month
  • Total working experience: minimum 3 years
What should be the minimum and maximum age to get personal loan?

The minimum age limit to apply for loan should be 21 years. Maximum age can go up to 60 years (salaried employees) and 65 years (self employed) at the time of loan maturity. However, age varies from bank to bank.

How does my income determine my eligibility?

Your monthly income to get personal loan should be at least Rs. 25,000. However, some banks give loans to individuals with salary less than Rs. 25,000. Banks also follow different limit to calculate the ratio of your fixed obligations to your monthly income. Suppose, your income is Rs. 30,000, then bank calculates your eligibility such that fixed obligations do not exceed 50% of your income. However, if your income is more than Rs. 40,000 per month, then banks will allow a higher fixed obligations to income ratio of 65%, which means that your fixed expenses (including rent and other EMIs) can be up to 65% of your income to be eligible for a loan from a bank. Higher the income, better are the chances to get high loan amount.

Does company profile affect my eligibility for personal loan?

Yes, company profile affects your loan eligibility. Good company profile and high salary increases your eligibility to get personal loan at low rate of interest. There are few banks which also offers loan to non-categorized companies employees but at high interest rates.

Do my existing loan obligations affect loan eligibility?

If you are already paying an EMI for any existing loan then your eligibility for the new loan applied will be comparatively low.

How can I improve my eligibility for personal loan?

You can improve your eligibility for personal loan by doing following things:

  • To increase your eligibility, pay off your running debts first
  • Pay your EMIs or other obligations on time to improve credit history and to negotiate with banks in future to get high loan amount
  • Transfer your existing loans to lower rate to reduce your existing EMI and to get new loan of higher amount
Personal Loan News - Jun 2019
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. MyLoanCare is an independent professional service provider and is not related to the government or government bodies or any regulator or any credit information bureau in any way. Information carried at this website is not and should not be construed as an offer or solicitation or invitation to borrow or lend. The Company does not undertake any liability with respect to the correctness of the content, information and calculations. Information is subject to change without notice. By submitting your query or using any tools or calculators, you authorize MyLoanCare to share your information with lender(s), consent for such lender(s) to access your credit information report and contact you regarding your query overriding your number being in National Do Not Call Registry. This is a free service and no charges are payable by the borrower to MyLoanCare. The Company may receive remuneration from lenders for services provided to them.