Personal Loan Eligibility
You may be eligible for Personal Loan from one or more banks in India if you meet the following eligibility conditions:
- Age: Minimum 21 years and maximum 65 years.
- Loan Amount: Minimum 1 Lakh and maximum up to 50 Lakhs. However, for most banks 25 Lakhs is the upper limit on a Personal Loan. You may also come across banks that only offer a maximum Personal Loan amount that is 10-22 times that of your net monthly income.
- Income: In order to apply for a personal loan of two lakh, you must have a monthly salary of 25,000 on average. This is mostly applicable for salaried people. Self-employed people need to submit their bank statements reflecting an annual income of around 5 lakhs in order to be eligible for a personal loan.
- CIBIL Score: For most banks a high CIBIL Score is a must for lending a Personal Loan; usually, the ideal being a score of 700 or more.
Personal Loan Eligibility for Salaried
- Minimum age - 21 years at loan application
- Maximum age - 60 years at loan maturity
- Minimum Monthly income - 20,000
- Minimum work experience - 2 years continuous job
- ITR - Last 2 years ITR
- Credit score - 700 & above
Methods of Calculating Personal Loan Eligibility
There are two ways of calculating the Personal Loan eligibility:
Multiplier Method: Under this method, the banks apply a multiplier to your net take home salary in order to calculate your Personal Loan amount eligibility. Higher the salary and reputed the company, higher is the multiplier and the loan eligibility.
FOIR (Fixed Obligations to Income Ratio): Under this process, the Personal Loan amount eligibility is computed on the basis of maximum EMIs or monthly instalments you can pay with regard to the net income after accounting for all other fixed expenses like rent and EMIs. The FOIR percentage can vary from lender to lender and for high-income borrowers, this can be upto 65%.
How to Apply for a ₹ 2 Lakh Personal Loan?
You can apply for a personal loan either by visiting your nearest bank branch or via online methods. If you decide to apply for a personal loan offline, you will have to apply through the DSAs. On the other hand, the online method is simpler and requires much less time. Calculate your monthly instalments through a 2 lakh loan EMI calculator before you apply for a loan.
In order to apply for a 2 lakh loan online, the major steps that you need to follow are as follows:
- Step 1: First, go through all the different interest rates and other text benefits offered by the leading banks and financial institutions at the contemporary time.
- Step 2: After choosing the scheme you want to go for, visit the official page of your preferred bank and find the ‘apply online’ option.
- Step 4: Fill in your employment details, personal details, income documents, KYC, and other necessary documents.
- Step 5: After submitting all the required documents, submit the form online and wait for the bank officials to transfer 2 lakh into your bank account