Personal Loan Eligibility Calculator

What is a personal loan eligibility calculator?

A personal loan eligibility calculator is a tool that helps you check personal loan eligibility and assess the maximum loan amount you can qualify for based on parameters such as your net income, age, and current liabilities and outstanding payments. This personal loan eligibility checker saves you time with a quick assessment, and you have more information to make the right decision for yourself.
All you need to do is fill in the details in the online calculator, and you will have an idea of the amount of loan you are eligible for, to proceed accordingly. Check your bank’s loan eligibility criteria before applying and compare your options for a personal loan, making informed financial decisions and easing the loan application process for yourself.

How is personal loan eligibility calculated?

Your bank personal loan eligibility is calculated after a detailed assessment of your net monthly income and existing liabilities, including EMIs, age, location, credit score, and other criteria important for eligibility. This assessment helps build transparency between you and your lender and avoids any miscommunications in the lending and borrowing process.

What are the criteria for personal loan eligibility?

• Age: You need to be at least 21 years old when you apply for the loan, and the maximum age at maturity of the personal loan tenure, should be 60 years.
• Minimum educational qualification: Having a graduation degree under your name is preferable. However, this is not a prerequisite to qualify for the personal loan approval process.
• Minimum monthly income: The minimum net monthly income in cities like Delhi and Mumbai is usually ₹25,000, but other cities might have an eligibility requirement of ₹15,000. It varies from one lender to another as well.
• Nature of employment: All salaried employees can apply for a personal loan if they fit the income bracket.
• Work experience: A minimum work experience of 1 year is expected to ensure your employability status and repayment capacity to the lender.

What factors affect personal loan eligibility?

• Age: The minimum age is 21, so you cannot apply before that, even if you fit other criteria. Similarly, you are not eligible for a five-year loan at 60 years old.
• Credit score: A credit score of 720 or above is preferred if you want to qualify for the expected loan amount. Anything lower than that might reduce your chances of getting a personal loan.
• Employment status: You need to be an employed/salaried individual to be eligible.
• Minimum monthly income: If you have a monthly income below ₹15,000, depending on your location, it may be difficult to obtain a personal loan.
• Work experience: You are not eligible for a personal loan unless you have 1 year of work experience in the same organisation.
• Debt-to-income ratio: Your debt-to-income ratio should ideally be under 40% of your net monthly income, which increases your chances of approval and a larger loan sanction amount.

What documents do you need to complete the personal loan application process?

One can apply for Personal Loan, digitally, with no documentation, via Axis Bank. However, one may require the below in case of an offline application.

• A filled-out and signed loan application form with a passport-size photo.
• KYC documents (Aadhaar card, passport, driver's licence, or voter ID)
• Age proof (Aadhaar card, passport, driver's licence, birth certificate, school leaving certificate, or PAN card)
• Signature proof (passport, PAN card, or banker’s verification)
• One-year employment proof
• Salary slip from the past 3 months.
• Bank statement from the past 6 months.

All the above-mentioned documents should be self-attested.