What Are the Eligibility Criteria for a Personal Loan? A Complete Guide

Has an urgent hospital bill or a sudden fix-up at home left you worried about unanticipated expenses? Fret not! A personal loan can help you, that too, without needing security. However, before applying, there’s an important factor to take into consideration, which is the personal loan eligibility criteria. Based on certain aspects, lenders decide whether to approve your application or not, and if yes, what interest rate to offer.

What Is Personal Loan Eligibility?

You must have often heard the term “eligibility”. Personal loan eligibility refers to the terms and conditions set by financial institutions to assess whether a borrower qualifies. It is often based on your age, income, employment status, credit track record, and repayment capacity.

Understanding the checklist ahead of time helps avoid rejections and ensures better terms, if you are new to borrowing or looking to check personal loan eligibility online.

Common Personal Loan Criteria

Here are some of the most common personal loan criteria, although specific details may vary across lenders and platforms.

• Borrowers between 21 and 60 are preferred. Some also accept applicants aged 18, particularly if they’re earning.
• Both salaried and self-employed individuals can apply. Personal loan eligibility for salaried person applicants often depends on employer profile and job stability. Business owners need a consistent income and a few years of business operation.
• A score above 750 is usually preferred. If you have a better score, you would attract better offers and a lower personal loan interest rate.
• You must be an Indian citizen living in the country, with valid identity and address proof.

Documents Required for Personal Loan

There’s a standard list of documents required for personal loan processing. PAN card and Aadhaar card are compulsory, along with bank statements from the last 3–6 months. Salary slips or income tax returns, and employer ID or business registration proof are also needed to be submitted. Finally, and not the least, address proof such as an electricity or gas bill or rental agreement is mandatory.

Calculating Your Personal Loan Eligibility

It is always advisable to use an online tool to run an eligibility loan check for you to have a clear idea where you stand.

Before applying, estimate personal loan eligibility to know how much you can borrow based on your income and liabilities. Platforms like Kissht allow you to check personal loan eligibility online in minutes. Their system uses real-time data and minimal paperwork to match you with offers that suit your profile.

Factors That Boost Approval Chances

• It’s not impossible to improve your chances of qualifying, if you follow a few practical steps.
• You will have to maintain stable income from a reliable source.
• Do not apply through multiple platforms at once.
• Keep your FOIR (Fixed Obligations to Income Ratio) below 40–50%.
• Time plays a valuable role. Make sure to repay loans and credit card bills on time
• It is vital to review your credit report regularly.

Why You Might Face a Loan Rejection

Knowing what might work against you is equally important. Some common issues include: irregular or low income; poor repayment history or defaults; high existing debt; incomplete or mismatched information; and frequent loan applications in a short period.

Kissht Making Borrowing Simpler

Kissht is a digital platform that simplifies the borrowing experience for users from different income groups. Their fully digital journey ensures quicker processing. You can download the personal loan app, complete the form, and get matched with offers based on your eligibility.

They even let you simulate repayments using a personal loan EMI calculator before you apply, so you can make informed choices and avoid overextending.

FAQs

How can I do an eligibility loan check without affecting my credit score?

Use trusted platforms that offer soft checks, such as Kissht, which allow you to check personal loan eligibility online safely.

How can I calculate my personal loan EMI before applying?

To estimate your monthly repayments and decide what loan amount works for your budget, you can use a personal loan EMI calculator.

What documents are needed when applying for a personal loan?

Identity proof, income proof, bank statements, and address verification.