The three things every lender checks, the numbers behind each, and what to fix first if you fall short.
Every bank lists the same four rules and none of them tell you what "enough income" means. This page gives the real thresholds, the arithmetic behind your maximum amount, and what to fix first if you fall short.
Open any bank's eligibility page and you get the same four lines: be 21, be salaried, earn enough, keep a good score. That is true and almost useless, because it does not say what "enough" is, and it does not tell you which of the four actually decides your case.
Three things decide it, and they do different jobs.
Work through them in that order and you will know where you stand before any lender tells you.
| What lenders check | Comfortable | Workable | Difficult |
|---|---|---|---|
| CIBIL score | 750 and above | 700 – 750 | Below 650 |
| Net monthly income (metro) | ₹40,000 and above | ₹25,000 – ₹40,000 | Below ₹20,000 |
| Total EMIs as % of income | Under 40% | 40 – 50% | Above 55% |
| Age at loan maturity | 25 – 55 | 21 – 25, 55 – 60 | Under 21, over 60 |
| Job tenure (salaried) | 2 years and above | 6 – 24 months | Under 6 months |
| Business vintage (self-employed) | 3 years and above | 2 – 3 years | Under 2 years |
You do not need the left column everywhere
Lenders assess the file as a whole. A strong credit score often carries a modest income. The reverse is much less true — a high salary rarely rescues a poor repayment history, because on an unsecured loan that history is the only security the lender has.
A personal loan is unsecured. There is no house, no gold, no fixed deposit to fall back on. The lender's only protection is evidence that you repay what you borrow. That is why your score does more work on this product than on any secured one.
| CIBIL band | What happens | Effect on rate |
|---|---|---|
| 780 and above | Every lender available, fastest approvals | Lowest band on offer |
| 750 – 780 | Approved comfortably almost everywhere | Close to the advertised rate |
| 700 – 750 | Approved, fewer lenders competing | Roughly 1.5 – 2% higher |
| 650 – 700 | List narrows sharply, more documentation | Noticeably higher |
| Below 650 | Most banks decline; some NBFCs still lend | Highest, risk priced openly |
Payment history is roughly a third of the score. One 90-day delinquency hurts more than a large outstanding balance you are servicing on time.
Credit utilisation is the next biggest lever and the one people underrate. Cards running near their limit read as financial stress even when every payment is made on time. Bringing utilisation from 90% down to 30% can move a score within one or two reporting cycles.
Hard enquiries accumulate. Every direct application to a bank logs one. Applying to five lenders in a week can cost you points before a single officer has assessed your file — and a cluster of enquiries reads as someone who is being refused.
Check before you apply, not after
Checking eligibility through a marketplace is a soft enquiry and leaves your score exactly where it is. Applying directly to a bank is a hard enquiry and does not. If you are unsure where you stand, find out the way that costs you nothing — then apply once, to the lender you actually want.
Most lenders set a floor between ₹15,000 and ₹25,000 net monthly income, higher in metro cities. But the floor is rarely the problem; almost everyone applying clears it. The problem is which income figure you are looking at.
Lenders assess net take-home — what actually lands in your bank account each month. Not CTC. CTC includes the employer's provident fund contribution, a gratuity provision, and often a performance bonus that has not been paid and may never be. A ₹9 lakh CTC frequently means about ₹58,000 in hand, and ₹58,000 is the number your eligibility is built on.
This single confusion is behind a large share of disappointed applicants. They calculate against ₹75,000 a month and are assessed on ₹58,000.
The principle is identical, the evidence is different. Instead of salary slips there are income tax returns, usually the last two or three years. Instead of an employer tier there is business vintage — most lenders want the business running at least three years.
What counts is declared profit. Aggressive tax planning that minimises what you declare also minimises what you can borrow. That is a genuine trade-off, and it is worth thinking about a year before you need a loan rather than a week before.
Banking behaviour carries more weight here than for salaried applicants. Twelve months of current account statements showing steady credits, no cheque bounces and no sustained overdraft tell a lender more than the ITR alone. A profitable business with erratic banking is a harder case than a modest one with clean, regular flows.
This is the section worth reading twice, because it is what actually limits most applications.
Lenders apply a fixed obligation to income ratio, usually shortened to FOIR. Your total monthly EMIs, including the new one you are asking for, must stay under roughly 50 to 55% of net income. Some lenders stretch to 60% for high earners. Some hold at 40% for entry-level salaries.
| Step | Figure | Where it comes from |
|---|---|---|
| Net monthly income | ₹60,000 | What credits to your account |
| FOIR ceiling at 50% | ₹30,000 | Maximum for all EMIs together |
| Car loan EMI | ₹8,000 | Already running |
| Consumer durable EMI | ₹4,000 | Already running |
| Room for a new EMI | ₹18,000 | ₹30,000 − ₹12,000 |
| Loan that supports | about ₹8.1 lakh | ₹18,000 EMI at 12% over 5 years |
Notice what happened. The income alone might suggest ₹15 lakh. The existing ₹12,000 of EMIs cut the answer to ₹8.1 lakh. Two useful conclusions follow.
Banks maintain internal employer lists, graded in tiers. A listed multinational or a large Indian corporate sits at the top. A mid-size private company sits lower. A small unlisted firm may not appear at all — which does not mean rejection, but does mean a higher rate and more documentation.
This is why two applicants with the same salary and the same credit score genuinely receive different offers. It is not arbitrary and it is not something you can argue at the counter. The tier is the lender's proxy for how likely your income is to continue.
Job tenure is assessed separately. Under six months in a current role is a common reason for decline even with an otherwise strong profile, because probation has not cleared. If you are about to change jobs and about to need a loan, the order of those two events matters more than most people realise.
The usual window is 21 to 60 at loan maturity, sometimes 65 for self-employed applicants. The maturity part is what catches people.
A 56-year-old salaried applicant asking for a seven-year tenure will be offered four, because the loan must close before retirement. A shorter tenure means a higher EMI. A higher EMI eats more FOIR. More FOIR used means a smaller eligible amount. So age reduces how much you can borrow even in cases where it does not affect approval at all.
Eligibility is assessed on documents, not on what you state. The full checklist is on the documents page, but in outline:
Ordered by how quickly each one moves the answer.
| Action | How fast it works | What it changes |
|---|---|---|
| Clear a small EMI with a few months left | Immediate | Frees FOIR headroom directly — often a lakh or more of eligibility |
| Bring card utilisation under 30% | 1 – 2 billing cycles | Moves the score and frees headroom at the same time |
| Stop making direct applications | Immediate | Prevents further hard enquiries stacking up |
| Correct errors on your credit report | 30 – 45 days | A closed loan still showing as open suppresses eligibility until fixed |
| Complete six months in a new job | By calendar | Removes the probation objection entirely |
| Add a co-applicant | At application | Adds their income — but also their credit history, for better or worse |
Report errors are more common than people expect
A loan you closed two years ago still showing as active, or an account that is not yours at all, appears on credit reports more often than you would think. Both suppress your eligibility, both are correctable free of charge through the bureau, and neither gets fixed unless you look. Pull your report before you apply, not after you are refused.
"Checking my eligibility will hurt my score." A soft enquiry through a marketplace does not. Only a direct application to a lender registers a hard enquiry.
"A higher salary always means a bigger loan." Only until FOIR binds. Someone earning ₹1 lakh with ₹40,000 of existing EMIs may qualify for less than someone earning ₹60,000 with none.
"Being rejected once means being rejected everywhere." Credit policies differ substantially between banks and NBFCs. A decline is one lender's answer, not the market's — though several applications in a row do make the next one harder.
"No credit history is safer than bad credit history." It is not better; it is just different. A thin file gives the lender nothing to assess, which usually means a smaller amount at a higher rate rather than an easy approval.
What eligibility is not
Meeting every criterion on this page does not guarantee approval. Each lender applies its own credit policy on top of these thresholds and may decline without giving a reason. Treat these as the conditions that get your file read seriously, not as a promise. All figures here are indicative and subject to change.
Q1. What is the minimum salary for a personal loan in India?
Most lenders set the floor between ₹15,000 and ₹25,000 net monthly income, higher in metro cities. It is net take-home that counts, not CTC — a ₹9 lakh CTC often means around ₹58,000 in hand, and that is the figure the lender works from.
Q2. What CIBIL score do I need for a personal loan?
Above 750 reaches every lender and the best rates. Between 700 and 750 you will be approved comfortably at a slightly higher rate. Between 650 and 700 the options narrow. Below 650 most banks decline, though some NBFCs lend against strong income or with a co-applicant.
Q3. How much personal loan can I get on a ₹50,000 salary?
Typically ₹8 lakh to ₹12 lakh with no existing EMIs and a score above 750. Existing obligations reduce it sharply, because lenders cap total EMIs at roughly half your net income — a ₹10,000 existing EMI can cut the figure by several lakh.
Q4. Does checking my eligibility reduce my credit score?
No. Checking through a marketplace is a soft enquiry and leaves the score untouched. Applying directly to a bank registers a hard enquiry, and several of those in a short period will pull the score down.
Q5. Can I get a personal loan without a salary slip?
Sometimes. Some lenders accept bank statements showing regular salary credits together with Form 16. Self-employed applicants are assessed on ITRs and business banking rather than slips at all.
Q6. Does a co-applicant improve my eligibility?
Yes, when income or score is borderline. The co-applicant's income is added to the assessment and their credit history is considered alongside yours — which also means a co-applicant with a weak report can make the application worse rather than better.
Q7. I changed jobs last month. Should I wait before applying?
Usually yes. Under six months in a current role is a common reason for decline even with an otherwise strong profile, because probation has not cleared. If the loan can wait until you complete six months, it will cost you less.
Q8. I was rejected by one bank. How long should I wait?
Give it three to six months and use the time to fix what caused it. Applying again immediately adds another hard enquiry to a file that has just been refused, which makes the next decision harder rather than easier.
Q9. Do existing credit card dues affect my eligibility?
Yes, twice over. A revolving balance is treated as an obligation — commonly 5% of the outstanding per month — so it eats FOIR headroom. High utilisation also suppresses your score. Paying a card down helps on both counts at once.
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