Personal Loan Eligibility – The Way To Credit

Arranging funds in the absence of any security has become an easy task due to the availability of unsecured loans. These loans are offered without any security or collateral and are also known as signature loans. The amount given under this loan can be used for any of the personal uses hence, are termed as personal loans.

Personal loans are availed by people who need the funds urgently and without providing any financial documents. These loans are offered by the Banks and the Non-Banking Institutions to the candidates whom they consider are capable of repaying the loan amount. This capability is calculated using the Personal Loan Eligibility Calculator. The calculator computes the amount of loan the applicant is eligible to take. And also reveals whether the applicant can get the amount he is willing to borrow.

Let’s see how the calculator works :

For Example – An applicant earning ₹ 20,000 per month wants a loan of ₹ 2,00,000 for the period of 4 years at the rate of 13% p.a. At this salary and rate of interest, he is eligible to take up the loan of up to ₹ 3,72,098. So, yes he can avail a loan of ₹ 2,00,000.

Factors Affecting Personal Loan Eligibility-

There are various parameters based on which the eligibility of the candidate is judged. The major factors affecting the eligibility are as follows :

Monthly Income – The most important criterion that helps in setting the disbursal amount is the income of the candidate. The person earning a handsome salary or high revenues is likely to get higher loan amount. 

Age – When it comes to applying for a loan, the age of the applicant also matters. The age limit varies from lender to lender but in general, ranges from 21-60 years. 

Monthly Expenses – As the lenders assume that the borrower will be repaying the loan from the monthly income excluding expenses, so the applicant’s savings become a concern while calculating the eligibility.

Any Other Loan – The lenders count the applicant’s obligation to repay any other loan while deciding the disbursal amount. If the applicant has the capacity to repay both the loan simultaneously the new loan is sanctioned.

Credit History –The healthy credit history of the applicant builds up the CIBIL score which makes it convenient for the applicant to avail a loan.

Job Stability – The applicant should have a stable job and have the experience of working with the same company for at least an year. The self-employed applicant too must have a regular source of income.

Bank Personal Loan Eligibility-

The major concern of the applicant is “how much personal loan can I get on my salary or what is the eligibility criteria in a particular bank?”. Below the eligibility criteria of top banks is discussed:

SBI Personal Loan Eligibility-

• Salaried, Self-Employed and Pensioners
• Age : Not more than 67 for pensioners
• Minimum Net Monthly Income : ₹ 7,500

Axis Bank Personal Loan Eligibility-

• Salaried and Self–Employed
• Age : 21-60 years (at time of maturity)
• Minimum Net Monthly Income : ₹ 15,000

ICICI Bank Personal Loan Eligibility-

• Salaried and Self–Employed
• Age : 23-58 years (for salaried ) & 25-65 years (for self-employed)
• Minimum Net Income : ₹ 17,500 per month or annual turnover of ₹ 15,00,000

The income plays a pivotal role in deciding the candidate’s personal loan eligibility. It is easy for people earning a good income to avail a loan from any lending institution. However, there are some institutions that provide personal loan for low salary earners.