Give details to confirm eligibility.

To be eligible for a personal loan, an applicant must be an Indian citizen with a steady income and meet the Bank's personal and professional criteria. The basic eligibility criteria for banks and NBFCs issuing personal loans are similar and are primarily based on monthly income, the company category of the employer, and the CIBIL score.

Checking your CIBIL score before applying for a personal loan has the following benefits:

• A self-check of the CIBIL score is considered a soft check and is not recorded in the customer's credit history.
• Each CIBIL check by a lender is a credit inquiry. Every additional investigation will result in a reduction of 10 to 15 points.
• Checking your CIBIL score before applying for further credit will help you identify any errors or wrong entries.
• You can approach a lender whose eligibility criteria you fulfil according to your existing score and history.

Checking your personal loan eligibility before applying is a smart step to ensure you meet the bank's required criteria. Key points to consider to check eligibility of Personal loan include:

• Income: The minimum acceptable income for processing a personal loan is ₹30k+. If your income is below the required amount, consider applying to a lender with a Salary account or an NBFC that accepts a lower income, as per their eligibility criteria. The salary must be electronically transferred on a fixed date.
• Company Category: The employer of the applicant must be listed in either the HDFC Bank Company Category list or the ICICI Bank-approved list of companies for an ICICI Bank personal loan eligibility check. If the employer is not included in any approved list, the applicant has the option to apply to YES Bank or an NBFC.
• CIBIL Score: Applicants without a CIBIL score can apply for a personal loan with HDFC Bank or ICICI Bank, which are industry leaders that accept applications without a CIBIL score. Other banks, such as YES Bank, have a cut-off score and do not accept applications with scores below this threshold.
• Existing loans and credit card dues: Note your current EMI payments and outstanding credit card bills that are due. Your existing debts will influence the eligibility calculation for the loan amount you have applied for. Use the personal loan eligibility calculator online to check your eligibility and find out the loan amount you qualify for.

Most lenders have similar essential eligibility criteria, but the specific requirements may vary according to each bank's individual policy. Major differences include:

• Salary Accounts: Banks have different eligibility criteria for applicants with a salary account or a corporate salary account. Banks can monitor the account holder's transactions and note the successful clearance of debts and the balances maintained. Account holders are offered the benefits of prioritised processing, discounted interest rates and pre-approved offers for a personal loan.
• CIBIL Score: Most lenders look for a clear, on-time track record of previous credit, but financial problems can occur, and there may be delays in repayment. Some banks work on a cutoff CIBIL score. For example, to check ICICI Bank personal loan eligibility, the applicant's CIBIL score must be 750 or higher. Whereas, for an AXIS Bank personal loan eligibility check, the bank will consider the complete history.
• Employment Details: When issuing a personal loan, the employer is a critical consideration. LTD companies, PSUs, and government organisations are the preferred employers for issuing personal loans. Employees of the partnership and proprietorship firms are not eligible to apply to Banks.

The loan amount issued to an applicant is determined based on the bank's eligibility calculation. Essential criteria include:

• Net income: Your net income is the basis for calculating the loan amount you are eligible for. The amount you can pay as an EMI is governed by the salary credits in your account.
• Other EMIs paid, and credit card obligations: The EMI being paid currently for other credit and the credit card obligations are added to the monthly obligations.
• Average bank balance maintained: The monthly Balance in your salary account must be sufficient to pay for the monthly EMI.
• A rented or self-owned residence: if you are living in rented premises, your monthly rent is considered part of the expenses. Living in a family or self-owned residence will save you the rent, which is an added source of income.

An applicant's CIBIL score required differs from Bank to Bank; the present requirement is as follows:

Some lenders qualify a personal loan request based on a credit score cutoff, as illustrated above. The applicant's CIBIL score is checked upon receipt of the application. If the score is below the benchmark, the request is denied.

HDFC Bank and Axis Bank consider the details of the score and the reason for the downgrade. If there is a plausible explanation for the decline in the score, the Bank will process the case.

Suppose an individual has a 0 CIBIL score (no credit history) or -1 (insufficient credit length). In that case, they can apply for a personal loan with ICICI Bank or HDFC Bank, provided all other eligibility criteria are met.

The Personal loan request of an applicant without a CIBIL score is assessed critically. If the applicant is above 40 years of age, the Bank does not feel it is logically acceptable that the applicant has not used credit before. The bank's fraud control will verify the details to minimise the chances of a change to the PAN card or personal information.

Banks have compiled a list of companies that have been vetted and verified as stable employers, with a low turnover rate and a history of paying salaries on time. An applicant working with a profitable company receives timely remuneration that enables the successful payment of the EMI. Such applicants are less likely to default on their credit dues.

HDFC Bank's company category list is an exhaustive list of top organisations classified as A, B, C, and D, similar to other banks such as Axis Bank, ICICI Bank, Yes Bank, and Kotak Bank.

The YES Bank personal loan eligibility check allows applications from non-listed companies, while ICICI Bank and AXIS Bank conditionally offer personal loans to applicants working in non-listed companies. NBFCs such as Incred and Fullerton India accept applications from applicants working for non-listed companies.

A personal loan is granted for individual expenses, such as emergencies and lifestyle needs. A net monthly amount should be transferred to the bank account on a regular monthly basis. A higher income typically results in a lower interest rate, a larger loan amount, and better loan terms. As per the personal loan policy:

• Banks consider a minimum monthly income of ₹30,000 to process a personal loan.
• Applicants with an income of ₹50k and above are eligible for personal loans at a lower interest rate.
• Applicants with an income of ₹75k and above are offered the benefits of the HDFC Bank Golden Edge personal loan.

According to the HDFC Bank personal loan eligibility check, the following criteria must be met to qualify for a personal loan of ₹10 lakhs.

• The applicant's salary must be ₹60,000 or more.
• The CIBIL score must exceed the required benchmark.
• The bank must approve the applicant's employer.
• The applicant must be eligible for the EMI.

To be eligible for a personal loan, applicants must be at least 23 years of age. A work experience of 12 months or more, along with a job stability requirement, makes an average applicant 25 years or above eligible to apply for a personal loan.

• Your company must feature in the MCA ( Ministry of Corporate Affairs) list, with a vintage of 5 years and above.
• Your employer is a primary consideration for personal loan eligibility, as your employment status affects the loan amount and the terms you can secure for a personal loan.
• If your employer is not in the approved list of companies for the sourcing of personal loans, your application will not be accepted.
• Banks also maintain a "do-not-source" or negative company list of companies.
• The loan amount and the interest applicable for your personal loan will depend on the status of your employer as per the bank's policy.

If you are looking to maximise your personal loan eligibility, it is a good idea to improve it before submitting your application.

• Ensure that there are sufficient funds in your account to cover the EMI payment on the due date.
• Clear credit card bills on the due date, and keep your credit usage below 50% of your credit limit.
• Work on your credit score by regularly using credit and making timely repayments of dues to bring it to an optimal level.
• Maintain a vintage credit to keep a steady CIBIL score, with a mortgage and do not close old credit cards.
• Your Bank statement reflects your financial standing, so make sure you maintain a good credit balance and that there are no returns or bounces.
• If you are not eligible for the loan amount, a personal loan top-up or a Balance transfer can help increase your eligibility for the required personal loan amount.

Self-employed persons can apply for a personal loan to Banks if the following eligibility criteria are fulfilled:

The business must have been in operation for at least three years.

• With a turnover of over one crore, showing an increasing trend.
• A Self-owned residence or office premise is required.
• A CIBIL score of 730 points and above.

Documents required include:

• The Income tax return for the past two years.
• GST details for one year.
• KYC documents and ownership papers.