Understanding Personal Loan Eligibility

Before applying for a personal loan, it's important to understand the eligibility criteria set by lenders. Personal loans are unsecured, meaning they don’t require collateral, so lenders assess various factors to determine an applicant’s creditworthiness.

Typically, personal loan eligibility depends on your age, monthly income, employment status, and credit score. Most banks and NBFCs require applicants to be between 21 to 60 years old, have a stable job, and earn a minimum monthly income (varies by lender). A credit score of 700 or above boosts your chances of quick approval and better interest rates.

Self-employed individuals may also be eligible, provided they have a consistent income and valid documentation. Meeting these criteria not only helps you secure the loan but also ensures a smoother application process.

Before applying, use an online Personal eligibility calculator to check where you stand and improve your chances of approval.