Every lender sets its own eligibility rules, but most look at the same core factors. Meeting them doesn't guarantee approval, and missing one doesn't always mean a "no" — the lender weighs your whole profile.
Typical eligibility criteria
| Criterion | What lenders usually look for |
|---|---|
| Age | 21 years or above at the time of applying; the upper age limit differs by lender |
| Residence | Indian resident |
| Income | A regular income — salary or self-employed income — above the lender's minimum, which can vary by city |
| Employment | Some time in your current job (salaried) or business vintage (self-employed) |
| Credit score | A score that meets the lender's cut-off; many prefer the mid-700s or higher |
| Existing EMIs | Your current EMIs plus the new one should be a manageable share of your income |
| Banking | An active bank account with regular credits and no recent bounces |
| KYC | PAN and address proof |
The factors that matter most
Credit score and history
Your record of repaying loans and cards is the lender's main evidence that you will repay. Read what CIBIL score you need for a personal loan.
Income and existing obligations
Lenders work out how much of your monthly income is already going to EMIs — the fixed obligations to income ratio (FOIR). The lower it is, the more room there is for a new EMI. Paying off a small loan or card balance before you apply can help.
Stability
A steady job or an established business tells the lender your income is likely to continue through the loan's tenure.
How to improve your eligibility
- Check your credit report and fix any errors. See how to improve your CIBIL score.
- Reduce card balances and close small loans you can clear.
- Apply for an amount whose EMI fits comfortably — try the EMI calculator.
- Add a co-applicant with a strong profile, where the lender allows it.
- Keep your documents consistent — same name, date of birth and address on PAN, Aadhaar and bank records. See the documents checklist.
- Avoid applying to many lenders at once.
Salaried or self-employed?
The criteria are similar, but income is checked differently. Read personal loan for salaried vs self-employed.