Personal loan eligibility depends upon various factors which differ from bank to bank. The main factor of course, is your ability to repay the loan. Banks that offer personal loans have stringent eligibility criteria and typically maintain profiles in terms of residence and your workplace. For example banks assess your repayment capacity with the kind of organisation you work in and even rate organisations. Having a healthy CIBIL score also helps in improving your eligibility towards getting a personal loan.

For your benefit, we have put down some important points to help you take care of your eligiblilty for a personal loan. Since a personal loan is given out with out any kind of security, or gaurantor, banks can get quite tough on eligibility. Keep the following points in mind to ensure your application goes through.

Personal Loan Eligibility Factors


Age plays a role in personal loan eligibility and repayment capacity of an individual. Banks generally give out personal loans to salaried individuals typically between the ages of 21 to 60 years. For self employed individuals this range is from 25 to 65 years.

Stable Employment

A stable employment record goes a long way to improve your eligibility for a personal loan. Salaried individuals with a minimum of 2 years of professional service with 1 year in current profession and a self employed person with a minimum of 5 years of total earning tenure with at least 2 years in current profession are eligible for a personal loan. These factors vary from bank to bank.

Financial Statements

Current and previous financial statements of an individual are important considerations for a bank while evaluating if you are eligible for a personal loan. Banks have different specifications on minimum levels of income for applying for personal loans. The financial statements help in determining the repayment capacity of the individual and hence lenders take maximum cognizance of this aspect while giving an unsecured personal loan. The loan amount that you are eligible for is also decided based on the above criteria.

Credit Ratings

Your credit history is an important aspect that lenders look into while approving your personal loan application. Missed and delayed payments are things that can lower your eligibility for a personal loan. A good credit rating on the other hand enhances the total amount that one is eligible for.


Personal loans, being unsecured, have different eligibility requirements compared to the other loan types. Your employer will also have ac company rating that the bank keeps record of. Employers are grouped into categories on basis of their own records. Public sector employees and those working with reputed and established private companies are more eligible for availing personal loans as compared to others as there is stability in their income and some security which is taken on by the employer.

Outstanding EMIs

Any pending EMIs at the time of applying for a personal loan are likely to reduce your eligibility in terms of maximum amount or even loan disbursal. Since the amount is calculated on basis the EMI, the applicant can possibly repay the contributions towards other outstanding loans to reduce the total personal loan amount drastically.

Additional Links on Personal Loan

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