Personal Loan Eligibility Criteria

Personal Loan Eligibility Criteria

Personal Loan Eligibility 

A personal loan is a short-term loan which is availed by the customers to meet the current financial needs. It’s offered with minimal documentation and it does not require collateral or security. The tenure of personal loan is shorter as compared to other loans, commonly between one to five years whereas, the interest rate is higher because of the risk associated with it while sanctioning the loan. The loan amount can be repaid in easy EMIs within the given tenure. It can be availed for vacations, debt restructuring, unexpected medical expenses, education, marriage and down payments.

Personal loan eligibility calculator

Personal loan eligibility calculator helps the customers know about the loan amount that can be availed depending on the existing EMI, monthly income and interest rate. Using the calculator loan tenure can also be calculated. The loan can be availed by both salaried and self-employed individuals.

The basic eligibility criteria for personal loans are:

AgeMinimum age of 21 years and maximum of 60 years
Employment typeSalaried/ Self-employed professionals/non professionals
IncomeRs.4,000 – Rs.20,000 net income per month
StabilityA minimum of 2 years in employment/in business and at least 1 years with current employer/business
Maximum loan amountUp to Rs.50 lakhs (Based on income, repayment capacity and existing EMIs)

How do banks calculate personal loan eligibility? 

Most banks have an inbuilt loan eligibility calculator on their official website. Following details are required to be entered to check the individual eligibility.

  • Name
  • City
  • D.O.B/ Age
  • Employment type
  • Income
  • Work experience

These particulars may vary from bank to bank, some banks also may ask for additional details such as contact details, employment details, the relationship you share with the bank and also  current EMI payments of existing loan liabilities.

Minimum loan amount of banks The minimum personal loan amount offered is different for different banks. Major public sector bank such as SBI has the minimum amount of Rs.25,000 for metro cities or urban areas. However, Rs.10,000 is the minimum amount for semi-urban and rural areas. Public sector banks such as ICICI bank and Axis bank has kept the minimum amount at Rs.50,000. 

Advantages of using Personal Loan Eligibility Calculator

  • Accuracy:Eligibility calculator provides accurate results within seconds, and lets individual know the loan amount they eligible for. This helps to make sure that they do not overestimate or underestimate their eligibility for the loan.
  • Helps in budget estimation:As the eligibility calculator takes into consideration both the income and the currently paying EMIs of the individual, it helps in preparing the budget approximation and assists to plan the budget accordingly.
  • Saves time:It saves individual from the difficulty of multiple calculations by performing calculations in seconds with the help of tool thereby providing desirable results and thus saves time.
  • Easy comparisons: Various banks provides inbuilt personal loan eligibility calculators on their sites, which helps in easy comparison of options and helps choose the most suitable one. And it helps in calculating the loan amount that they are eligible for by comparing various offers.

Personal loan eligibility of top Indian banks 

HDFC Bank Personal Loan Eligibility :

 SalariedSelf employed
Age21-60 years25–65 years
Monthly IncomeRs.12,000 – Rs.15,000Rs.60,000 p.a. taxable income for doctors and CAs. Rs.1,00,000 p.a. taxable income for engineers, MBA consultants, Architect
Loan AmountRs.25,000 – Rs.15,00,000Rs.15,00,000 maximum
Tenure12 months to 60 months12 months to 36 months
Interest Rate15.75 to 20%14.5 to 15%

SBI Personal Loan Eligibility :

 SalariedSelf employed
Age21-58 years21–65 years
Minimum IncomeRs.5,000Rs.7,000
Job experience2 years2 years

ICICI Bank Personal Loan Eligibility :

 SalariedSelf employed
Age23-58 years28–65 years
Net salaryMinimum monthly income Rs.17,500Rs.49 lakh for non-professionals, Rs.15 lakh for professionals
Job experience2 yearsAt least 5 years if in current business, minimum 3 years for doctors
Years in current residence1 year1 year

Axis Bank Personal Loan Eligibility :

 SalariedSelf employed
Age21- 58 years24–65 years
Monthly IncomeRs.15,000 per monthRs.2 lakh per annum
Loan AmountRs.15,00,000Rs.20,00,000

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