Personal Loan Eligibility & Document Checklist: Get Your Loan Approved

Best Personal Loans


In India, many people face difficulty in getting a personal loan from banks. The lender can reject your loan application if:

  • You are not eligible for a personal loan or
  • You are not able to provide proper documents to show your eligibility.

Personal Loan Eligibility Calculator

Banks want to ensure that whether you will be able to repay the loan with interest.

Through Credit Appraisal process banks determine your “Loan Repayment Capacity and decide your personal loan eligibility.

Your repayment capacity also affects:

  • The Maximum Amount of Loan You Can Get
  • Tenure of Loan (No. of Installments), and
  • Interest Rate

Bank will assess the following factors before approving any personal loan:

  • Age of Applicants
  • Monthly Income of Applicant/Co-Applicant
  • Monthly Expense
  • Existing Loans
  • Credit Score or CIBIL Score
  • Financial Default History
  • Qualifications
  • Future Liabilities
  • Business/Professional Experience
  • Employer/Type of Business
  • Family Details
  • Asset Owned/Net Worth
  • Tax History

Check Personal Loan Eligibility for Salaried Person

Age21 – 60 yrs.
Income (Minimum)₹12,000 – ₹ 20000 Per Month
Credit Score700+
Work Experience2 Years

Check Personal Loan Eligibility for Self Employed (Businessman)

Age21 – 68 yrs.
Income (Minimum)₹ 2 Lakh Yearly Net Profit
Credit Score700+
Work Experience2 Years

Personal Loan Documents Check List 

1. Photo ID Proof: Aadhar Card, Passport, Driving License, Service Identity Card, PAN Card, etc.

2. Age Proof: Aadhar Card, School/College ID, Birth Certificate, PAN Card, Voter ID Card, etc.

3. Address Proof: Rental Agreement, Aadhar Card, Passport, PAN Card, Ration Card, Voter ID Card, Passbook and Driving License.

4. Income Proof:

  • Salaried – Salary Slip, Bank Statement (last 6 months), Income Tax Return (2 years).
  • Self-Employed – Bank Statement (6 months), Income Tax Return (3 years), Audited Balance Sheet and P & L A/c (3 Years).

5. Business Proof (only for self-employed/business): GST Registration, Udyog Aadhar, PAN, Company Registration Certificate, partnership deed, Trade license, certificate of practice or registration certificate issued by RBI, SEBI


Maximum Eligible Loan Amount 

Banks calculate the maximum eligible loan amount with these two methods –

1. Fixed Obligation Income Ratio (FOIR)

Under this method, the maximum eligible loan amount is calculated based on the maximum monthly EMI you can afford. The maximum monthly EMI is equal to your net monthly income after deducting all the expenses and other EMIs.

Banks generally accept 50% of your monthly income towards EMI and fixed obligations. So you can have a maximum EMI up to 50% of your monthly income.

If you have other EMIs or fixed obligations then your maximum EMI for the personal loan will be reduced accordingly.

Example – Akhilesh has a monthly income of Rs. 30000 and he doesn’t have any other fixed obligations. He wants to take a personal loan at 11% interest rate and for the longest tenure of 5 years.

In this case, the maximum EMI can be Rs. 15000 (50% of 30000) and accordingly he can get the maximum loan of  Rs. 6,90,000 for the period of 5 Years. 

In the same example, if Akhilesh has an existing EMI of Rs. 6000 then the maximum EMI for the new personal loan can only be Rs. 9000 (i.e. 50% of 30000 – Rs.6000). Accordingly, he can get a maximum loan of Rs. 4,14,000 for 5 years.

2. Multiplier Method

This method is very simple, the bank decides the loan amount by applying a multiplier on your net monthly salary or income. Generally, the banks apply a multiplier of 8 to 20 times depending upon the credit profile of the borrower.

Example – Your monthly salary is Rs. 50,000 and the bank provides personal loan on 18 times multiplier rule. Accordingly, so your maximum loan amount can be Rs. 9 lakh (50000*18).

To calculate your EMI, check this – Personal Loan EMI Calculator

How Much Personal Loan Can I Get

Here you can get an estimate about the maximum amount of loan you can get based on your monthly income/salary and the tenure of loan:


  • Interest Rate: 16%
  • FOIR (Fixed Obligation Income Ratio): 50%
  • Maximum EMI: 50% of Your Monthly Income/Salary

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