Personal loans are unsecured loans that can be obtained to meet any sudden or unplanned expenses such as marriage expenses, educational expenses, holiday expenses, and medical expenses. 

The minimum salary required for a personal loan for salaried individuals is INR 25,000 per month (for residents of Mumbai and Delhi) and Rs. 20,000 per month for all other locations. However, this may vary across lenders. 

What Are The Factors Affecting Personal Loan Eligibility

Some of the factors affecting personal loan eligibility criteria are: 

Credit score:

The chances of applicants with credit scores of 750 and above defaulting are less. This is because a person with this credit score range is considered to be financially disciplined. So, banks and NBFCs prefer to lend personal loans to such applicants. Also, many lenders set lower interest rates for personal loan applicants having higher credit scores. Nevertheless, some lenders also give personal loans to applicants having lower credit scores but the interest rates may be very high. 


Most banks and NBFCs give personal loans to applicants in the age range of 18 years to 65 years. 

Minimum income:

When you have a higher income, it indicates a higher capacity to repay your loan on time. So, lenders have a low risk in lending to you. The salary requirement set by most lenders is atleast Rs. 15,000 or above for salaried individuals. But individuals with a minimum salary of Rs. 25,000 are more preferred by the banks. In case of self-employed individuals, lenders usually need a gross annual income of Rs. 2 Lakhs or more. 

Work/business experience:

Many banks specify that salaried individuals need to have at least 2 years of work experience with at least 6 months in the current organization. 

Repayment Capacity:

Banks and NBFCs usually sanction personal loans to applicants whose EMI ratio is not more than 50% to 55%.