Personal Loan Eligibility Criteria for Salaried & Self-Employed

eligibility for a Personal Loan

Want to get a Personal Loan but worried about rejection? Both salaried and self-employed individuals qualify for Personal Loans. Depending on your eligibility, you can get anywhere between Rs. 50,000 to Rs. 25 lakhs of Personal Loan. It is best to apply for pre-approved offers so that you can quickly get a Personal Loan. However, the loan approval process may also get delayed when your profile is not eligible. Rather than experiencing delays in the loan approval process, it is best to confirm your eligibility before applying.

Individuals who want to learn more about the eligibility for a Personal Loan will find this post helpful. In this article, we will discuss the financial requirements for salaried and self-employed individuals. Further, we discuss the top ways to increase your eligibility for Personal Loans.   

What Are the Eligibility Criteria for a Personal Loan?

Your eligibility to get a Personal Loan depends on various factors, such as type of profession, employer, credit score, etc. Here are the standard eligibility criteria required by almost every bank that provides Personal Loans:

  • Indian resident: Personal Loans can only be given to Indian citizens. 
  • Age: Anyone between the ages of 21 and 65 can apply for a Personal Loan. The age criteria for self-employed individuals are 25 to 65 years, and for salaried individuals, it is 21 to 58 years. 
  • Residence: Your Personal Loan application also requires address proof. To be eligible for a Personal Loan, you should give a residence proof of at least one-year-old. Simply put, you can only get a Personal Loan if you have lived in your current residence for the last one year.
  • Employability: Your eligibility to get a Personal Loan also depends on your ability to repay the loan. The minimum expected business stability period is five years, and for salaried individuals, it is important to be in the same organisation for the last two years. 
  • Credit record: Another crucial factor determining your eligibility is your CIBIL score. Anyone with a CIBIL score of 750 and above is eligible for a Personal Loan. 
  • Liability relationship: An individual is eligible to get a Personal Loan if they have a liability relationship with the bank where they are applying for a Personal Loan. A minimum of one year of relationship with the bank makes you eligible for a Personal Loan. 
  • Income or turnover: Personal Loans are provided to both salaried and self-employed individuals. The income or business turnover requirements depend on various factors, which are further discussed in the next section. 

What Are the Salary Requirements for a Personal Loan?

Salaried individuals can apply for a Personal Loan if their monthly income is Rs. 30,000. However, the minimum salary requirement may change in various locations. You might be eligible to get a Personal Loan even if you are not making Rs. 30,000 per month. Keep on reading to understand how:

  • Location: The cost of living is higher in metro cities. Therefore, the minimum salary requirements are higher. However, if you are living in Tier-II cities or applying for a Personal Loan from a rural area, a loan officer might approve your profile even if your monthly income is Rs. 25,000 or lesser. 
  • Residence: Salaried individuals living in a property they own can get a Personal Loan even at a lesser salary. Your monthly disposable income reduces when you live in a rented apartment. The remaining amount is calculated to confirm whether you can repay the loan. 
  • Credit History: Individuals with a higher credit score or strong asset relationship (past loan) can get a Personal Loan at a lower salary. On the other hand, if there are any existing loans, then the minimum salary requirements get higher. 
  • Employment record: Every lender expects a salaried individual to have job stability so they can repay the loan. The type of organisation also significantly affects your eligibility for a Personal Loan. Individuals working for state or central government or large-scale MNCs can get a Personal Loan even at a lower income. 

What Are the Business Turnover Requirements for a Personal Loan? 

Business owners, contractors, traders, freelancers, doctors, lawyers, or even homemakers working as tuition teachers can apply for a Personal Loan. Here are the business turnover requirements for Personal Loan application:

  • Turnover: Non-professional self-employed individuals like contractors and traders should have a business turnover of Rs. 40 lakhs in audited financials. The range gets less for professional self-employed individuals and becomes 15 lakhs annually. 
  • Profit: If you have a proprietorship firm, the audited financials must have a profit of Rs. 2 lakhs. This is the minimum profit range for professional self-employed individuals; non-professionals can get a Personal Loan with a minimum profit of Rs. 1 lakh. 

How to Improve Your Loan Eligibility?  

Confirm your eligibility to get faster loan approvals and competitive interest rates. Following are the methods to increase your chances of getting a loan:

  1. Credit score: Use a credit card, make timely payments, and have a CIBIL score of 750 or higher.
  2. Restrict loan applications: It is important to compare different offers but don’t apply for every attractive scheme you heard about. Your loan application inquiries reflect in your credit report. Multiple inquiries reflected in your profile affect your eligibility. 
  3. Co-borrower: If your income is lower or your business turnover is not as required, add a co-applicant to provide repayment assurance. Adding a co-applicant makes you eligible for a Personal Loan despite having a smaller income. 

What Are the Documents Required to Prove Your Financial Stability?

Salaried individuals can prove their eligibility by showing the latest three months’ salary slips and bank statements where the salary is credited. 

Self-employed individuals can only apply for a Personal Loan by submitting proof of the last two years of ITR filling. 


Your eligibility for a Personal Loan depends on your profession, credit report, employment record, and relationship with the bank. The standard eligibility criteria are discussed in this post. If you need more assistance, it is best to connect with the customer care department of your bank online or offline.

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