Online loans can help you to come over those critical conditions where money becomes the prime necessity. As online loans are fast in processing and disbursal, it can become a great help in fighting financial emergencies. But getting approval on a personal loan depends on the eligibility of the applicant. One has to qualify for a personal loan to get approval on the loan application.

Personal loans are collateral free loans which make the lender making the eligibility criteria bit firm as compared to secured loans. The risk of non-payment of  EMI is always high here so lenders make a strict eligibility check so that the risk of NPA can be minimised. Let’s learn how to get qualified for a personal loan.

Personal Loan Eligibility Criteria


Age is the first criteria to meet for a loan applicant. The loan applicant must not be less than 21 years old at the time of applying for the loan and must not be more than 60 years old at the maturity of the loan. The chances of getting approval increases when you are young. Being young, you will have fewer responsibilities towards your family and can extend your loan tenure till the maximum length.


The income is the next checklist of the lender before sanctioning the loan. The income of a person denotes the repayment capacity and creditworthiness of a person. The applicant must have a regular source of income. If you are a salaried persona, your minimum income must be Rs.25,000 per month. The minimum income may vary from lender to lender. Along with the same, the amount of minimum income also varies depending on profession i.e. salaried individual, self-employed business person or a professional.

Credit Score

Prior to approving any kind of loan including online loans, lenders do check the credit score of the applicant. The credit score ranges from 300 to 900. The credit score of 750 or above is considered eligible for a personal loan online. Higher credit score indicates your disciplined behaviour towards your previous credits. If you default in any of the credits in past, this will be recorded by the credit bureaus and will be reflected in your credit report. Such actions of the past may make the lender believe that you may default in your next loan too. So the lender may reject your loan application.

Employment History

The employment history is checked in the case of both salaried and self-employed loan applicants. If you are a salaried applicant, you must have a minimum of 2 years of work experience in total and you must be working under the present employer for last one year. In the case of self-employed, the applicant must have 5 years of business history to become eligible for a personal loan. Frequent change in job or business denotes instability in nature which is a negative remark for personal loan eligibility.

Repayment Capacity

The repayment capacity of a loan applicant is measured by a calculation which is called FOIR. The FOIR stands for Fixed Obligation to Income Ratio which is an indicator of smooth loan repayment. In this calculation, the lender finds out your net monthly income and the total outgo of all your existing loans including the applied one. If the total of all EMI’s is more than 50% of the in hand income, the lender assumes that you may default the loan. In such scenarios, it becomes difficult to get approval for an online loan. Before taking a loan applicant should check EMI with EMI calculator. Doing this you can plan your repayment amount.

How Can I Get An Instant Loan Online?

This is a common question of a great number of loan aspirants as most of them apply for a personal loan when they are in an urgent need of fund. Well, to get an instant loan, you should always be prepared for the same. Being personal loan eligible all the time needs some amount of homework. To get easily qualified for a personal loan, one should keep the credit score high and FOIR low. Along with the same, a spotless professional life has to be maintained all the time.

The last Lines

Online loans are very handy as you can avail them anytime and anywhere. But being eligible for the same is required if you want your lender to approve the loan application. If you meet all the eligibility criteria and your documents are flawless, it takes just a few hours to get approval and disbursement of the loan.