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Personal Loan Eligibility 2019

Last Updated 09th Dec 2019

Personal Loan Eligibility Calculator

5th December 2019 – RBI keeps Repo Rate unchanged at 5.15%

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
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Personal loan Eligibility for Banks in India

BankEligible Loan Amount for Max TenureAge of the borrowerMinimum Work Experience
SBI Personal Loan₹ 15 Lakh for 72 Months21 to 58 Years24 Months
HDFC Bank Personal Loan₹ 75 Lakh for 60 Months21 to 60 Years12 Months
ICICI Bank Personal Loan₹ 30 Lakh for 60 Months23 to 58 Years24 Months
Bajaj Finserv₹ 25 Lakh for 60 Months25 to 58 Years36 Months
Citibank₹ 30 Lakh for 60 Months23 to 60 Years36 Months
IDFC First Bank₹ 40 Lakh for 60 Months23 to 58 Years12 Months
Axis Bank₹ 15 Lakh for 60 Months21 to 60 Years12 Months
Tata Capital₹ 25 Lakh for 72 Months21 to 58 Years24 Months
Fullerton India₹ 25 Lakh for 48 Months21 to 58 Years12 Months
IndusInd Bank₹ 25 Lakh for 60 Months21 to 60 Years24 Months
Kotak Bank₹ 15 Lakh for 60 Months22 to 55 Years24 Months
RBL Bank₹ 20 Lakh for 60 Months25 to 60 Years36 Months
IIFL₹ 25 Lakh for 60 Months25 to 60 Years36 Months
HDB Financial₹ 20 Lakh for 60 Months22 to 60 Years6 Months
IDBI Bank₹ 10 Lakh for 60 Months22 to 60 Years36 Months
Allahabad Bank₹ 7.50 Lakh for 60 Months21 to 58 Years24 Months
Muthoot₹ 15 Lakh for 60 Months26 to 58 YearsN/A
Bank of Baroda₹ 2 Lakh for 36 Months21 to 60 Years36 Months
Andhra Bank₹ 5 Lakh for 60 Months21 to 55 YearsN/A
Indian Bank₹ 5 Lakh for 36 Months21 to 58 YearsN/A
Federal Bank₹ 10 Lakh for 48 Months21 to 55 Years36 Months
Bank of Maharashtra₹ 1.50 Lakh for 36 Months21 to 60 Years36 Months
Karur Vysya Bank₹ 10 Lakh for 36 Months25 to 60 Years24 Months
Standard Chartered Bank₹ 30 Lakh for 60 Months23 to 58 Years36 Months
Union Bank of India₹ 5 Lakh for 60 Months21 to 58 YearsN/A
Canara Bank₹ 3 Lakh for 48 Months21 to 60 Years36 Months
Yes Bank₹ 20 Lakh for 60 Months21 to 60 Years24 Months
Indian Overseas Bank₹ 15 Lakh for 60 Months21 to 58 Years36 Months
Corporation Bank₹ 2.50 Lakh for 36 Months21 to 58 YearsN/A
PNB₹ 15 Lakh for 60 Months21 to 58 YearsN/A
Syndicate Bank₹ 2 Lakh for 60 Months21 to 58 YearsN/A

Personal Loan Eligibility Criteria

The basic criteria for personal loan eligibility for most of the banks and NBFCs are:

Minimum and Maximum Age
  • 21 Yrs. - 65 Yrs.
Note: However, many banks require a minimum age of 23 years
Loan Amount
  • Upto Rs. 75 lakhs. Most banks restrict maximum eligibility to Rs. 25 lakhs
Note: Some banks also limit the maximum eligibility at 10 – 27 times of net monthly income
Net Monthly Income

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

  • Min. Rs. 15,000 (For Semi & Rural ) and 20,000 (For Metro)
Note: Some banks specify a 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 10.50% to 36.00% 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 a new loan
  • Pay your existing debts first and then apply for a 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 a low credit score

You can use the personal loan eligibility calculator to assess your present eligibility in comparison to what you are looking for.

How to check Personal Loan 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 27, 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 a higher 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 based on the 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 the 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, the bank will lend an amount where maximum EMI is restricted to Rs.25,000 (50% of Mr. A’s salary), which is at the lowest rate of interest of 10.50% and longest tenure of 6 years, translates in to a loan amount of ₹ 13.31 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 ₹ 5.33 Lakh at the longest tenure of 6 years and lowest rate of interest 10.50%

Banks will calculate your eligibility under the 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)10.50% 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: 10.50% to 22%
  • Processing Fee payable : Upto Rs. 2,000
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From ₹ 2,149 for a months Rs. 1 Lakh loan at 10.50% (lowest rate, longest time period) to ₹ 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: 10.50% to 22%
  • Total cost payable over loan tenure: ₹ 14,313 for 12 months loan to ₹ 30,963 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 factors such as:

  • Age: Minimum 21 years and maximum 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 a loan should be 21 years. Maximum age can go up to 60 years (salaried employees) and 65 years (self employed professionals) 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 a 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 a 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 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, the better are the chances to get high loan amount.

You can use the personal loan eligibility calculator to check your current eligibility for home loan offers from various banks and NBFCs.

Does company profile affect my eligibility for a personal loan?

Yes, company profile affects your loan eligibility. Good company profile and high salary increase your eligibility to get a personal loan at a 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 a personal loan by doing the 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 the future to get a high loan amount
  • Transfer your existing loans to a lower rate to reduce your existing EMI and to get new loan of higher amount
  • Using a personal loan eligibility calculator can help you assess your present status as compared to what you would like to achieve.
How much personal loan can I get on my salary?

Banks ask for a minimum income of Rs. 25,000 for a personal loan. However, some banks give loans for a salary less than Rs. 25,000. Your loan eligibility is calculated based on the ratio of your fixed obligations to your monthly income. If your income is less than 30,000, then the maximum obligations cannot exceed 50% of your monthly income. However, for a higher income, the obligations to income ratio can go upto 65%. If you have a higher income, then there are better chances to get a higher loan amount.

How much loan can I get if my salary is 40000?

The personal loan amount depends on FOIR and multiplier. The lower of these two factors are considered as the eligible loan amount. Suppose the bank gives a loan at a FOIR of 50%, and the maximum multiplier is 20, and you do not have any EMI going on. The maximum amount you can pay as EMI for personal loan is Rs. 40,000*50% = Rs. 20,000. If you take a personal loan for a maximum of 5 years, then your loan amount will be Rs. 20,000*12*5 = Rs. 12,00,000. However, the multiplier is 20, then the loan amount will be Rs. 40,000*20 = 8,00,000. Therefore, the amount you will get on Rs. 40,000 salary is Rs. 8,00,000.

How much loan can I get if my salary is 60000?

The personal loan amount depends on FOIR and multiplier. The lower of these two factors are considered as the eligible loan amount. Suppose if your FOIR is 60% and the multiplier is 20, and you do not have any EMI going on. Then, the maximum amount you can pay as EMI is Rs. 60,000*60% = Rs. 36,000. If you take a personal loan for a maximum of 5 years, then your loan amount will be Rs. 36,000*12*5 = Rs. 21,60,000. However, the multiplier is 20, then the loan amount will be Rs. 60,000*20 = 12,00,000. Therefore, the amount you will get on Rs. 60,000 salary is Rs. 12,00,000.

Apart from income, eligibility depends on various other factors. Thus, it is suggested to use the personal loan eligibility calculator for better assessment.

Personal Loan News - Dec 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. Read More