Personal Loan Eligibility 2021

Hemant Malhotra Core Banking Informative
12 Min Read
Eligibility
Eligibility
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Main factors that establish eligibility for personal loan are:

Contents
Personal Loan Eligibility for Banks in IndiaPersonal Loan Eligibility CriteriaHow To Inspect Personal Loan Eligibility?Multiplier MethodIllustrationFOIR (Fixed Obligation Income Ratio)IllustrationWhat is Personal Loan Eligibility Calculator?
ProfessionSalaried person working in government, private or MNC firms as well as self employed professionals like Doctors, CA, CS, Architects
Eligible Age21 years to 60 years
Minimum Income for Loan Eligibility₹ 25,000 per month for salaried; ₹ 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 for Banks in India

BankEligible Loan Amount For Max TenureAge Of The BorrowerMinimum Work Experience
SBI Personal Loan Eligibility₹ 15 Lakh for 72 Months21 to 58 Years24 Months
HDFC Bank Personal Loan Eligibility₹ 75 Lakh for 60 Months21 to 60 Years12 Months
ICICI Bank Personal Loan Eligibility₹ 30 Lakh for 60 Months23 to 58 Years24 Months
Bajaj Finserv Personal Loan Eligibility₹ 25 Lakh for 60 Months25 to 58 Years36 Months
IDFC First Bank Personal Loan Eligibility₹ 40 Lakh for 60 Months23 to 60 Years12 Months
Axis Bank₹ 25 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 48 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
Bank of Baroda₹ 5 Lakh for 60 Months21 to 60 Years36 Months
Andhra Bank₹ 5 Lakh for 60 Months21 to 55 YearsN/A
Muthoot₹ 15 Lakh for 60 Months26 to 58 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₹ 10 Lakh for 60 Months21 to 60 Years36 Months
Karur Vysya Bank₹ 10 Lakh for 36 Months25 to 60 Years24 Months
Standard Chartered Bank₹ 50 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
IDBI Bank₹ 10 Lakh for 60 Months22 to 60 Years36 Months
Allahabad Bank₹ 7.50 Lakh for 60 Months25 to 58 Years24 Months
Axis Finance₹ 25 Lakh for 60 Months21 to 58 Years24 Months

Personal Loan Eligibility Criteria

The basic requirements for personal loan eligibility for a lot of the banks as well as NBFCs are:

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Minimum and Maximum Age21 Yrs. – 65 Yrs.Note: Nonetheless, several bank require a minimum age of 23 years
Loan AmountUpto 75 Lakh. Most of banks limit maximum eligibility to 25 Lakh Note: Some banks additionally limit the optimum eligibility at 10 – 27 times of internet monthly income.
Net Monthly IncomeFor salaried individuals, timely as well as regular salary debt is necessary to obtain eligible for a loan.Min. 15,000 (For SemiUrban & Rural) and also 20,000 (For City) Note: Some banks define a higher minimal earnings demand for people staying on rent.
Employment TypeSalaried customers have more options for personal loan banks Interest prices are commonly in the series of 8.95% to 36.00% per annum Personal loans to self-employed professionals and businessmen are classified as Business Loan
Current EMI’sExisting loan EMIs can lower the eligibility of obtaining a new loanPay your existing debts first and then look for a new loan.
Minimum Work Experience3 years of total work experience. Some banks additionally give financings with 1 year of total experience Tenure from the present company must not be much less than 6 – 12 month.
CIBIL Score for Personal Loan650 & more credit history
Note: Many banks avoid offering loan if you have a low credit report

How To Inspect Personal Loan Eligibility?

Personal Loan eligibility can be calculated in two methods:

  • Multiplier Method
  • FOIR (Fixed Obligation to Income Ratio)

Multiplier Method

Under this method, bank apply a multiplier to your web take away income to calculate your financing quantity eligibility. The multiplier applied is a function of your take home salary and firm account. Higher the income as well as more considered the company, greater is the multiplier as well as your loan eligibility. Normally, Bank use a multiplier of 9 to 27, as well as these multipliers are defined for different levels of salary and also internal categorization of business by the bank. Greater the group to which a business belongs, higher will be the finance quantity eligibility as well as lower the personal loan interest rate.

Illustration

Mr. A has a regular monthly take home salary of 40,000 without various other EMI to pay. He collaborates with a company which is a category A firm based on the banks. In this instance, the bank applies a higher multiplier of 20 to calculate his loan amount eligibility. At a multiplier of 20, the funding amount Mr. A will certainly be eligible for is 8lakh (40000*20). This suggests Mr. A can obtain a miximum amunt of 8 lakh from the bank.

FOIR (Fixed Obligation Income Ratio)

Under this technique, your loan amount eligibility iis determined based upon the maximum EMI or monthly installations you can service relative to take home pay off repesting the various other fixed expenditures such as rental fee and EMIs. Bank or NBFCs generally accept 50-75% of your earnings as EMI, existing fixed commitments and credit card exceptional. If the responsibilities go beyond bank’s norms, after that the bank will certainly either lower your loan quantity or will certainly boost the tenure of your loan.
The bank determines your eligibility such that taken care of obligations (consisting of the EMI for the new loan) do not go beyond 50% of your income. This portion can vary from lending institution to loan provider. For high revenue borrowers, this can vary 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 maimum EMI is restricted to Rs.25,000 (50% of Mr. A’s Salary), which is at the lowest rate of interest of 10.40% and longest tenure of 6 years, translates in to a loan amount of Rs.13.35 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 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 Rs 5.34lakh at the longest tenure of 6 years and lowest rate of interest 10.40%

Banks will certainly determine your eligibility under the multiplier and FOIR method as well as will certainly accept a loan amount which is lower of the loan eligibility calculated under the two techniques.

You can utilize the personal loan eligibility calculator to analyze your existing eligibility in comparison to what you are trying to find.

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What is Personal Loan Eligibility Calculator?

Personal loan eligibility calculator is a totally free, easy to use device that gives clarity on the financing amount you are eligible for at various rates of interest and also the period best matched for you. Availing a personal loan is complicated, especially when you are unsure regarding your eligibility. When you desire a high amount but do not have a really strong credit rating, after that obtaining the wanted quantity may confirm to be hard. That is where using an personal loan eligibility calculator is available in. Personal loan eligibility is determined based upon your monthly income, current EMIs, and also the kind of company you are presently benefiting, and the number of years of functioning experience you have. All these are necessary consider identifying your eligibility for the finance quantity you prefer. It calculates the maximum loan amount you are qualified based on the optimum EMI you can afford.A full analysis is done on all those aspects to figure out the very best offers or financing offers for you. You can utilize an individual financing eligibility calculator to obtain a clear picture of the possible loan deals you can get, as well as the most effective component regarding it is that it’s not counted as a loan application.

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By Hemant Malhotra
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An experienced, qualified and result oriented professional with several years experience as a Chartered Accountant. Hemant assignment in various industries have helped him to develop expertise in sales, customer relation management, and Enterprenurship. Hemant has got degree in B. Com ( Hons. ) from Delhi University and is a Chartered Accountant by profession.Specialties: Accountancy, Taxation, Corporate Law, Business Audit, Entrepreneurship.
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