Personal Loan Eligibility Criteria and Documents (2026)

Written by FT Editorial Team · Reviewed by FundsTiger Credit Expert Team

Short answer: Most lenders want you to be an Indian resident aged roughly 21 to 60, with a steady income credited to your bank account, a credit score in the 700s or above, and existing EMIs that leave room for a new one. The documents are usually PAN, Aadhaar-based KYC, recent salary slips or income tax returns, and 3 to 6 months of bank statements. Exact limits differ by lender, so treat the figures below as typical, not fixed rules.

Last updated: 13 October 2026.

This page lists the usual criteria, shows how lenders work out how much you can borrow, and gives a document checklist for salaried and self-employed applicants.

Typical eligibility criteria

Criterion	Salaried	Self-employed
Age	About 21 to 60 years (some lenders to retirement age)	About 25 to 65 years
Income	Minimum net monthly salary set by each lender; banks usually ask more than NBFCs	Stable business income shown in ITRs and bank statements
Work history	Often 6 to 12 months in the current job, 1 to 2 years total	Usually 2 to 3 years in the same business
Credit score	Around 700 or above widens your options	Around 700 or above widens your options
Existing EMIs (FOIR)	Total EMIs typically capped at 40%–60% of net income	Assessed on income after business expenses
Residency	Resident Indian; most personal loans are not offered to NRIs	Resident Indian

Income cut-offs vary widely. Some NBFCs lend to people earning ₹15,000–₹25,000 a month, while many banks want more; see personal loan on a ₹25,000 salary and personal loan on a ₹50,000 salary for examples. For the reasoning behind each criterion, read how banks and NBFCs decide loan eligibility.

How much can you borrow? A worked example

Lenders use FOIR (fixed obligations to income ratio): the share of your net monthly income that can go to EMIs, including the new one.

1. Net monthly salary: ₹50,000.
2. Lender’s FOIR limit: 50%, so total EMIs can be up to ₹25,000.
3. Existing EMIs (a bike loan): ₹8,000.
4. Room for a new EMI: ₹25,000 − ₹8,000 = ₹17,000.
5. At 14% a year over 48 months, a ₹17,000 EMI supports a loan of about ₹6,20,000. Over 36 months, it supports about ₹4,97,000.

Paying off a small loan first, or choosing a longer tenure, raises the amount you can get. Run your own numbers with our FOIR eligibility calculator and the EMI calculator.

Eligibility by profile: quick examples

These illustrative profiles show how the same criteria play out differently. They are examples, not offers.

Profile	Strengths	Likely constraint
Software engineer, 28, ₹80,000 net salary, score 770, no EMIs	High income, clean record	Few; amount limited mainly by FOIR and lender caps
Retail supervisor, 35, ₹22,000 net salary, score 690, one ₹4,000 EMI	Stable job	Smaller amount; fewer lenders at this income
Shop owner, 42, ITR income ₹6 lakh a year, score 720	Long business vintage	Needs ITRs and bank statements; cash income may not count
New graduate, 23, ₹30,000 salary, no credit history	Young, fresh employment	No score yet; small first loan or secured card to build history

Before you apply, download your report and check every account and personal detail; our credit report guide covers all four bureaus. For tips on presenting a clean application, see how to get your personal loan application approved.

Older versions of this page listed a single minimum salary of ₹30,000 and an age range starting at 18. In practice, lenders now set their own thresholds, most start at about 21, and many NBFCs consider lower incomes, so check each lender’s current criteria rather than relying on one number.

Documents required: salaried applicants

• Identity and KYC: PAN card (mandatory) and Aadhaar for e-KYC. Lenders may also accept passport, voter ID or driving licence, or complete KYC by video.
• Address proof: Aadhaar, passport, utility bill or rent agreement if your current address differs.
• Income proof: salary slips for the last 2 to 3 months and, for larger loans, Form 16.
• Bank statements: the last 3 to 6 months for the account where your salary is credited.
• Employment proof: an official email ID or employee ID card; some lenders verify through EPFO records.

Documents required: self-employed applicants

• PAN and Aadhaar of the applicant; business PAN where applicable.
• Income tax returns for the last 2 years, with computation of income.
• Bank statements of the main business account for 6 to 12 months.
• Business proof such as GST registration, Udyam registration or a shop and establishment licence.
• Audited or CA-certified financial statements for higher amounts.

If you run a business and need funds for it, see our business loan documents checklist and loan options for the self-employed.

What has changed for borrowers

• Key Fact Statement for every loan: since October 2024, RBI requires lenders to give a KFS with the APR, all charges and the repayment schedule before you sign. Fees not mentioned in it cannot be charged.
• Digital loans: under RBI’s Digital Lending Directions, 2025, the loan must be paid into your own bank account, repayments go directly to the lender, and you get a cooling-off period of at least one day.
• Faster credit updates: since January 2025, lenders must report to credit bureaus at least fortnightly, so a recently closed loan or cleared overdue shows up sooner.

Why applications get rejected

• Existing EMIs already near the lender’s FOIR limit.
• Recent missed payments, settled or written-off accounts. Our CIBIL improvement guide explains what helps.
• Many loan applications in a short period.
• Mismatched details: name, date of birth or address differing between PAN, Aadhaar and bank records.
• Employer not on the lender’s approved list, or income paid in cash.
• Frequent job changes, or a probation period that has not yet ended.

A rejection does not appear on your report as such, but each application adds a hard enquiry. Wait, fix the reason, then reapply.

How to improve your eligibility

1. Check your credit report for errors before applying and raise a dispute if you find one.
2. Close small, high-cost loans to free up FOIR.
3. Add a co-applicant with income, where the lender allows it.
4. Apply for an amount and tenure that keep your EMI comfortably within your budget.
5. Apply with one or two lenders at a time rather than many at once.

If your score is the obstacle, our hub on loans for a low credit score lists realistic options.

Frequently asked questions

What is the minimum salary for a personal loan?

There is no single rule. Some NBFCs consider net salaries around ₹15,000–₹25,000 a month, while many banks set higher thresholds. Your FOIR and credit score matter as much as salary.

What CIBIL score do I need for a personal loan?

Many lenders prefer 700 or higher. Below that, approval is still possible with some lenders, usually for smaller amounts or higher rates.

Can I get a personal loan without salary slips?

Some lenders accept bank statements showing regular salary credits, or Form 16, instead of slips. Self-employed applicants use ITRs and bank statements.

Is Aadhaar mandatory for a personal loan?

PAN is required by lenders. Aadhaar is widely used for e-KYC because it is fast, but regulated lenders also offer other KYC routes, such as other officially valid documents or video KYC.

Can NRIs get a personal loan in India?

Most personal loans are for resident Indians. A few banks have specific products for NRIs, with separate conditions.

Sources

• RBI: Key Facts Statement for Loans and Advances (15 April 2024)
• RBI: Digital Lending Directions, 2025
• RBI: Frequency of reporting of credit information (8 August 2024)

Disclosure: FundsTiger (Gatimaan Finance Advisors Pvt. Ltd.) is a loan marketplace and lending service provider for RBI-regulated lenders. Aparampaar Finance Pvt. Ltd. (Omozing), one of those lenders, is a related party of FundsTiger. This article is general information, not financial advice. Read your loan agreement and KFS before you decide.