Check Personal Loan Eligibility

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5,00,000
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3,00,000
Loan Eligibility

Maximum Loan Eligibility = 27,93,000/-

Your Loan Eligibility By Bank

Bank Name Eligibility
Standard Chartered Bank Standard Chartered Bank 27,93,000/-
Tata Capital Tata Capital 25,06,000/-

Personal Loan Eligibility Criteria for Salaried and Self-Employed Applicants

Eligible Criteria Salaried Self-Employed Professionals
Age(Min-Max) 21-60 25-60
Income ₹3,50,000 ₹4,80,000
City Mumbai, Delhi NCR, Bangalore, Chennai, Kolkata, Hyderabad and Ahmedabad All over India
Co-applicant Not mandatory Mandatory
Employment Fulltime with at least 2 years of experience Atleast 5 years of earning turnover
Documents Required Bank Account Statement/ Latest Electricity Bill/ Latest Telephone Bill/ Latest Credit Card Bill/ Employers letter certifying current mailing address/Passport(Valid)- provided the passport address is present address mentioned in application form / Existing Registered House Lease/ Government I-card with photo Bank Account Statement/ Latest Electricity Bill/ Latest Telephone Bill/ Latest Credit Card Bill/ Employers letter certifying current mailing address/Passport(Valid)
CIBIL Required (750-900) Required

Personal Loan Eligibility Criteria

Personal Loan is mostly taken by borrower during emergencies or to meet certain needs and wants. It is up to the borrower to decide the type of loan that is required. However, it is essential to understand if all criteria id met for applying a loan. Personal loan money can be used for any purpose instead of the case of home loan, automobile loan, which are used for specific purpose. Irrespective of your occupation or profession, there is always a need to check your personal loan eligibility before approaching banks and it is all available through online just few clicks away.

Methods of Calculating Personal Loan Eligibility

Different financial institutions implement different methods to determine an applicant’s loan eligibility and the maximum they are eligible for.

Generally personal loan eligibility is calculated in two ways, one is Multiplier Method and the other is FOIR (Fixed Obligation Income Ratio). The other method of FOIR depends on the monthly instalment expected to be paid as compared to the net income of the individual.

  1. Multiplier Method

Multiplier is the simplest method using a formula:

Loan Eligibility = (Your Net Salary) x (a number from 9 to 18).

This depends on the company you are employed with, is, its stability, growth and turnover.

  1. FOIR - Fixed Obligations to Income Ratio

Fixed Obligations denote the fixed monthly payments that you need to make towards your existing debts like existing loans be it personal loan, home loan or a business loan or your EMIs towards your credit card(s).

The formula for calculating FOIR is:

FOIR = (Sum of Existing Obligations/Net Take Home Monthly Salary) * 100

The ratio of your net take home monthly salary and your fixed obligations is FOIR. The maximum FOIR which the lending institutions consider is up to 75%, and that too when the take home monthly salary is very high. The FOIR is calculated in a way that, if your current loan application is approved, your FOIR should not go beyond 75% in case if the monthly income is very high. In the case of normal earning range, the FOIR should not go beyond 50-60% of the take home salary.

FOIR is calculated so that the applicant should have enough money left every month after repayments so that they can for their monthly necessities like rent, food and other daily needs.

Generally, if the existing FOIR is less than 35-40% of your salary, you are eligible (discretionary, as you need to satisfy other eligibility criteria as well). But if more than 50% of your salary is already consumed in monthly repayments towards your existing debts, your chances of getting approved for a personal loan is very less. Only applicants in high salary range have chances to get approved with such a high FOIR and that too only for longer tenures.

FOIR is more popular personal loan eligibility calculation method, which a majority of financial institutions follow in order to determine an applicant’s eligibility. Personal Loans which require more than 6 months for repayments are the ones that are considered through FOIR method.

For instance, if your income ₹ 70,000 per month, and you have a personal loan running for which you are paying an EMI of ₹ 5,500 and another car loan of ₹ 8500 per month. Now, considering the fact that 50% of your income can be paid towards your loans.

Now we have,

50% of 70000 = ₹ 35,000

Car Loan EMI = ₹ 8500  

Personal Loan EMI= ₹ 5500

So, your disposable income for this fresh loan is:

35000 – 8500 – 5500 = ₹ 21000

FOIR = (8500+5500)/70000 = 14000/70000 = 0.2 or 20%

This implies that the lender will not approve the loan amount, if the monthly EMIs cross ₹ 21000 even at the longest tenure. If the EMI for the requested loan amount is less than ₹ 21000, the applicant will have a fairly high chance of getting approved for the loan. This method helps decide how much an applicant can afford to pay as EMIs while paying their other EMIs.

Factors Deciding Personal Loan Eligibility

Personal Loans are unsecured loans, which means the lenders do not ask for any kind of asset, whether movable or immovable, as a collateral. The decision of disbursing a personal loan to the applicant is hence dependent on other factors, which determine whether the applicant would be able to repay the loan in a timely manner or not. Since there are no collateral involved, hence the lender is at higher risk, just in case someone runs off with the loan, or declares the inability to repay at any point during the tenor of the loan.

Hence lender has to be double sure about the repayment capability of the applicant before they approve and disburse the requested personal loan. Lenders look for many criteria before sanctioning a personal loan to any applicant. Few never missed factors are here.

Age Criteria: The younger you are, more is the probability of you getting a personal loan as you have many earning years ahead to repay your loan. General guideline followed by most banks for personal loan for salaried employees is they must be between 21 to 60 years aged. However for self-employed it is between 25 to 65 years.

Employment Stability: This is a very crucial aspect for personal loan consideration. Unless you are salaried and employed for more than 2 years in the current profession or if self-employed minimum 5 years of total tenure of earnings, you will not be considered as eligible. However, this is discretionary and depends on your current company and your annual compensation, if you happen to be employed with a top notch company where you seem to have a stable and promising career ahead.

Credit Rating: Apart from your company’s performance, individual credit rating holds a lot of value. Having good credit rating increases the probability of getting loan with more flexible option on tenure, amount, EMI and interest rates. In case of any default payment records, huge outstanding loan, fraudulent track records, the banks has every right to cancel the personal loan application or charge higher interest rate, to lower their risk.

Financial Situation: It’s not always about the present, the past financial records will also have a great call on deciding whether you are eligible for a personal loan or not. Having good financial records is the key, will eradicate rating issues and will increase the total amount eligibility. Just in case if you had been irregular with your payments with default(s) or been marked as NPA, any lender will refrain from approving the loan as these will indicate that you are not credit worthy.

Employer: The employer with whom the applicant is working with is the best way to gauge the credibility of the applicant. Being a part of reputed and high turnover companies is an asset when it comes to applying for personal loan, as their employee’s growth is promising.

Why was My Personal Loan Application Declined?

Specific Eligibility Criteria of Top Personal Loan Providers

The top 5 banks that offer loan in India are HDFC, ICICI, Axis, Citibank and Capital First. Loan eligibility criteria for each of these vary accordingly various factors. Here is a brief description of the same.

HDFC Personal Loan Eligibility:

HDFC is the bank which offers you personal loan at affordable rates so that you can live you dreams and spend more on your lifestyle and necessities than EMIs. With HDFC you can get your personal loan disbursed within 2 to 3 days. HDFC is the bank which is known for maintaining transparency in any kind of loan processing. If you are an existing customer of HDFC then you can avail special offers and benefits too.

You can customize HDFC personal loan to meet your requirement. You can use HDFC personal loan for many purpose like for your vacation tour, your home renovation or it can be for wedding also and for many more things. With HDFC you can avail personal loans up to INR 25,00,000.

The processing is very fast with HDFC the result of which is your loan amount will be disbursed to you within 48 hours that is exactly 2 days from when you apply for your personal loan.

HDFC Bank offers its personal loans at an interest rates of 15.75% to 20% and the loan processing charge is 2.50% of the loan amount or it can be a minimum of INR 1000 to a maximum of INR 25,000 depending on your loan amount. HDFC Bank does not allows prepayment until 12 EMIs have been repaid.  Be careful about the timely repayments for HDFC’s personal loan as the bank charges 24% per annum on the outstanding amount of loan for late payments.

It has fast approval processes with minimal and easy documentation. Below is the list of HDFC personal loan eligibility criteria.

Documents Required:

  • Identity proof (passport, driving license or voter ID card)
  • Address proof (ration card, electricity bill, telephone bill, passport or rental agreement)
  • Latest 3 month’s bank statement or at least 6 months passbook of bank
  • Recent salary slips

Eligibility Criteria:

  • Aged between 21-60 years
  • Minimum 2 years of total work-experience with at least 1 year tenure with current employer
  • Minimum ₹ 24,000 per month and net income should be ₹ 30,000 if located at Delhi, Bangalore, Cochin, Chennai, Mumbai, Ahmedabad and Kolkata.

ICICI Personal Loan Eligibility:

ICICI is the largest private sector bank in India. ICICI offers you wide range of banking products and it best at providing financial services like home loan, personal loan, business loan etc. You can avail a personal loan from ICICI for different purposes such as for holidays, education, for your home renovation, for wedding expenditures and even for buying gadgets and all.

ICICI offers instant processing for your personal loan with simple and easy documentation process. It requires less documents as compared to other Banks and NBFCs .

ICICI offers you attractive interest rates for your personal loan which vary from 10.99% to 17.99% and disbursal within 72 hours. The processing fees you will charged for your personal loan with ICICI is 1.25% of your loan amount. ICICI offers you flexible payment options from 12 to 60 months. loan amount can vary from INR 50,000 to INR 2,000,000. The other advantage with ICICI Personal Loan is that no security or guarantor is required.

Below is the list of ICICI personal loan eligibility criteria.

Documents Required:

  • 2 passport size photographs
  • Identity proof: (passport, voters ID, driving license or pan card).
  • Address proof: (lease agreement, less than 3 months old utility bill or passport).
  • last 3 months’ Bank statements.
  • Latest 3 months’ salary slips.

Eligibility:

  • Aged between 26-60 years.
  • Minimum 2 years of total work.
  • Minimum ₹ 24,000 per month and net income should be ₹ 30,000 if located at Pune, Bangalore, Chennai, Hyderabad and Kolkata.

Axis Personal Loan Eligibility:

Personal Loan requirement varies from person to person and Axis Bank understands this and hence created a personal loan product to meet your specific need. The personal loan interest rates and the charges involved are very competitive, making Axis Bank Personal Loan affordable, especially for salaried employees.  Axis Bank Personal Loan, over the period of time has gained popularity and trust of millions of its customers. And to make it even better, Axis Bank allows prepayment of personal loan without any prepayment charges. And just in case, should you face any problem or have any doubts or queries, their excellent customer support is always available to help you.

Axis Bank offers Personal Loan to salaried employees, with loan amount ranging from ₹ 50,000 to ₹ 1,500,000 for tenors of 1 to 5 years (12-60 months) at very competitive interest rates. Axis Bank Personal Loan requires very simple and minimal documentation and the application process is quick and hassle free. Axis Personal Loan feature quick approval, so that the loan application gets approved and disbursed in a very short period of time. Axis Bank offers fast service at less interest rate. It has very transparent and flexible in its eligibility criteria.

Below is the list of Axis Bank personal loan eligibility criteria.

Documents Required:

  • 2 passport size photographs.
  • Identity proof: (passport, voters ID, driving license or pan card).
  • Address proof: (lease agreement, less than 3 months old utility bill or passport).
  • Last 3 months’ Bank statements.
  • Latest 3 months’ salary slips.

Eligibility:

  • Aged between 21-60 years.
  • Maximum limit 15 lakhs.
  • Minimum ₹ 24,000 per month net income.

Citibank Personal Loan Eligibility:

Citibank Personal Loan services are considered as one of the approachable and the most inexpensive ones existing in the service market. Citibank Personal Loan can be made use to meet financial requirements like medical expenses, education expenses, travel expenses, home renovation expenses, wedding costs or even for a vacation. Citibank offers personal loan at low interest rates for any online applications. All relevant documentation requirements are nominal, and no-collateral is required. Top-up option is made available with all Citibank Personal Loans according to your eligibility.

Below is the list of Citibank personal loan eligibility criteria.

Documents Required:

  • No guarantor required.
  • Identity proof: (passport, voters ID, driving license or pan card).
  • Address proof: (lease agreement, less than 3 months old utility bill or passport).
  • last 3 months’ Bank statements.
  • Latest 3 months’ salary slips.

Eligibility:

  • Aged between 26-60 years
  • Minimum ₹ 30,000 per month net income

Capital First Personal Loan Eligibility:

Capital First is one of the best people’s financial companies to offer personal loan for various needs. This financial company has the record of consistent growth and profitability.

Through Capital First you can avail loan amount up to ₹ 10,00,000, it offers flexible repayment options up to 60 months, easy repay in EMIs is available. This company offers lowest interest rates as compared to many big banks and lenders. CIBIL score of just 700 is required while others need at least 750. They offer speedy loan approval, credit shield and hassle- free personal loan processing.

Below is the list of Capital First personal loan eligibility criteria.

Documents Required:

  • Relationship proof
  • Identity proof: Passport, Voters ID, Driving License or Pan Card.
  • Address Proof: Lease Agreement, Less Than 3 Months Old Utility Bill Or Passport.
  • Last 3 months’ bank statements.
  • Latest 3 months’ salary slips.

Eligibility:

  • Aged between 21-60 years.
  • Minimum ₹ 24,000 per month net income.

Bajaj Finserv Personal Loan Eligibility Criteria

Bajaj Finserv Personal Loan can help you meet all your temporary cash crunch, be it for holiday trip abroad, or to buy your favorite gadget, or anything else. Bajaj Finserv offers one of the best personal loans with lowest interest rates starting from 11.99%, and high loan amounts starting from ₹ 50,000.

It is the fair call for personal loan as the interest offered is depending upon the credit score & income of individual. The processing of the loan is quite quick & the amount will be disburse at soonest. Smart option of online application is also available.

Below is the list of Bajaj Finserv personal loan eligibility criteria.

Documents Required:

  • Filled application form for personal loan
  • 2 Passport Size Photo
  • Copy of Income Tax PAN
  • Identity Proof: Valid identity proof (passport/ voter’s ID/ driving license/ PAN card/ Aadhar card)
  • Address Proof: Valid address proof (latest utility bill/ ration card/passport)
  • Documents of income: last 3 month’s pay slip & bank statement & last 2 years form 16 in case of salaried applicants. 6 months bank statement & business proof in case of self-employed professionals.

Eligibility:

  • The age of applicant should be of at least 25 years. The maximum limit of the age is 60 years.
  • The monthly income of the applicant should be ₹ 40,000 & above.
  • The applicant should have at least 2 years of work experience.
  • The CIBIL Score should exceed 750.

IndusInd Bank Personal Loan Eligibility Criteria

IndusInd Bank is one of the best banks for personal loan. IndusInd Bank has good scrutiny and offers personal loan for genuine applicants. IndusInd Bank has been rated for pretty good service and offer great options to its customers. This bank offers fast service with less interest rate.  It has very transparent and flexible in its eligibility criteria. It is possible to get personal with just 2 days from this bank if you have all necessary documentation and if you meet all criteria. It has fast approval processes with minimal and easy documentation.

IndusInd Bank offers competitive interest rate along with maximum loan amount approval: Indusind Bank also provides an attractive interest rate on each Personal loan. The bank has simple, easy and hassle-free documentation, with an effortless and trouble-free documentation, personal loan staffs of this bank are very customer friendly. The applicant can avail door-door service and make the most use of the convenience. Balance Transfer option at a lower rate is offered to each applicant in case of any existing amount of loan.

Below is the list of IndusInd Bank personal loan eligibility criteria.

Documents Required:

  • Identity Proof: Valid identity proof (passport/ voter’s ID/ driving license/ PAN card/ Aadhar card)
  • Address Proof: Valid address proof (latest utility bill/ ration card/passport)
  • Document of income: Salary slip of last 3 months, 6 months bank statement, form 16 of current year & the offer letter of current employer in case of salaried person. In case of self-employed income tax return & profit & loss & balance sheet of last 2 years, last 6 months bank statement & business proof.
  • Business Proof for Self-employed Professionals: Additional proof for self-employed required are (sole proprietorship declaration/ partnership form).

Eligibility:

  • Minimum age of applicant should be 21 years in case of salaried & 25 years in case of self-employed professionals. Maximum age limit is 60 years in case of salaried & 65 years in case of self employed professionals.
  • Minimum monthly income of the applicant should be at least ₹ 30,000 in case of salaried & ₹ 40,000 in case of self-employed.
  • Minimum two years of work experience is required in case of salaried. In case of self-employed minimum 4 years of work experience is required.

Kotak Mahindra Bank Personal Loan Eligibility Criteria

Kotak Mahindra Bank is the Indian bank and financial service firm that was established in early 1900s. It was known as Kotak Mahindra Finance Limited, which is a NBFC. During February 2003, this Kotak Mahindra Finance Ltd, group's flagship company was provided with license to start banking business by Reserve Bank of India (RBI). Kotak Mahindra Finance Ltd. Convert itself into an Indian bank for the first time. Between 2011 to 2013 years, this bank grew as big as 500 branches, with over 1,000 ATMs. Kotak Mahindra Bank offers personal loan with less documentation and attractive interest rates.

To be eligibile for Kotak Mahindra Bank Personal Loan the applicant just has to be 21 years old and less than 55 years. It doesn’t matter whether you are a salaried or self-employed individual, regular income is sufficient. If you earn the minimum limit of income- simply apply for a personal loan and make your dreams a reality right away.

The loan processing can take as low as 72 hours of time for approval & disbursement of the amount. The bank has flexible loan payment for salaried as well as self-employed persons. Services offered to the customers are more than up to the mark.

Below is the list of Kotak Mahindra Bank personal loan eligibility criteria.

Documents Required:

  • Copy of filled application form for personal loan
  • 1 passport size photo
  • Copy of income tax PAN card
  • Identity Proof: Valid identity proof (passport/ voter’s ID/ driving license/ PAN card/ Aadhar card)
  • Address Proof: Valid address proof (latest utility bill/ ration card/passport)
  • Document of income: Salary slip of last 3 months, 6 months bank statement, form 16 of current year & the offer letter of current employer in case of salaried person. In case of self-employed income tax return & profit & loss & balance sheet of last 2 years, last 6 months bank statement & business proof.
  • Business Proof for Self-employed Professionals: Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof.

Eligibility:

  • The applicant should be a resident of India.
  • Minimum age of the applicant should be at least 21 years. Maximum age limit is 58 years.
  • The applicant should have minimum monthly income of ₹ 30,000.
  • The applicant should be a graduate at least.
  • Applicant should have at least 2 years of work experience.
  • The applicant should be the resident of the city at least for one year.

Standard Chartered Bank Personal Loan Eligibility Criteria

If you are in search of a bank that offers best high-end services to each of its customer, the search ends here with Standard Chartered Bank which has been in existence ever since 1800s. With more than 1700 branches in 70 countries, this bank has employed 87,000 people. Standard Chartered Bank is considered as an universal bank and it operates for corporates and individuals. This bank has primary listing in London Stock Exchange. Whether small or big, each of its corporate and individual customers is given utmost care and attention at all times. This is one of the best banks to avail for personal loan.

Standard Chartered Bank offers wide variety of  personal loans for both Salaried and Self Employed individuals at competitive interest rates without the need of any security/collaterals. Standard Chartered Personal Loan have simple documentation and quick processing. The personal loan repayment options vary from ECS, Account Debits and PDCs.

Below is the list of Standard Chartered Bank personal loan eligibility criteria.

Documents Required:

  • Filled up loan application form
  • 1 Passport Size Photo
  • Copy of Income Tax PAN
  • Identity Proof: Valid identity proof (passport/ voter’s ID/ driving license/ PAN card/ Aadhar card)
  • Address Proof: Valid address proof (latest utility bill/ ration card/passport)
  • Documents of Income : Last 3 month’s pay slip & bank statement & last 2 years form 16

Eligibility:

  • Minimum age of the applicant should be at least 21 years. Maximum age limit is 58 years
  • In case of salaried employees applicant should have at least 3 years of work experience with minimum 3 months with current employer. In case of self-employed the business should at least be 3 years old.
  • The CIBIL Score should exceed 750.
  • Minimum ₹ 24,000 per month and net income should be ₹ 30,000 per month if located at Pune, Bangalore, Chennai, Hyderabad and Kolkata.

TATA Capital Personal Loan Eligibility Criteria

Tata Capital is a very trusted name and also a leader amongst the NBFCs in India. Tata Capital offers custom solutions for personal loans, keeping in view the customer needs, at attractive interest rates. Tata Capital has a dedicated credit management team, and caters to all segments of salaried employees as well as self-employed individuals.

Tata Capital Personal Loan are designed to meet everyone’s credit needs, which vary from individual to individual. One can avail Tata Capital Personal Loan for the flexibility it offers to suit the needs and financial conditions of people belonging to all walks of life and employment.

Below is the list of Tata Capital personal loan eligibility criteria.

Documents Required:

  • Copy of filled application form for personal loan
  • 1 passport size photo
  • Copy of income tax PAN card
  • Identity Proof: Valid identity proof (passport/ voter’s ID/ driving license/ PAN card/ Aadhar card)
  • Address Proof: Valid address proof (latest utility bill/ ration card/passport)
  • Document of income: Salary slip of last 3 months, 6 months bank statement, form 16 of current year & the offer letter of current employer in case of salaried person. In case of self-employed income tax return & profit & loss & balance sheet of last 2 years, last 6 months bank statement & business proof.
  • Business Proof for Self-employed Professionals: Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof.

Eligibility:

  • Minimum age of the applicant should be at least 21 years. Maximum age limit is 58 years.
  • The applicant should have minimum monthly income of ₹ 30,000.
  • The applicant should be a graduate at least.
  • Applicant should have at least 2 years of work experience.

It is also essential to keep in mind; every bank branch manager has discretionary power to decide the eligibility despite of any eligibility criteria.

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