Loan Eligibility Guide
A plain-language guide to the factors lenders consider when assessing a loan application - age, income, credit score, debt-to-income ratio and employment. Indicative only; every lender decides on its own criteria.
Key eligibility factors explained
Age
Lenders have minimum and maximum age bands (usually by the end of the loan tenure). Minimum ages typically start around 21 for unsecured and 18-21 for some secured products; maximum ages usually fall between 58 and 65 at loan maturity, and can be higher (up to 70-75) for products like home loans and loan against property. Younger borrowers are often asked for more stability proof.
Income
For salaried applicants, lenders evaluate take-home income, the number of months in the current job, and the net monthly surplus after existing obligations. For self-employed applicants and businesses, they look at IT returns, business income, turnover and profitability. Higher, verifiable income generally increases the amount you can borrow.
Credit score (CIBIL & other bureaus)
Your credit score summarises your repayment history. A score of 750+ (or 700+, depending on the lender) is generally viewed favourably, but lenders consider the full report - defaults, delays, existing exposure and credit enquiries - not just the number. Scores are not the only factor, and a good score does not by itself guarantee approval.
Debt-to-income ratio (DTI)
DTI compares your existing monthly obligations (EMIs, credit card dues) with your monthly income. A high DTI signals that a new EMI may strain your finances, so lenders cap it - for example, many keep total monthly obligations below 50-60% of net income for salaried applicants after adding the proposed EMI. Keeping your DTI comfortable improves your chances.
Employment / business stability
Salaried applicants are often expected to have a minimum tenure with their employer (commonly 6 months to 1 year). Self-employed applicants and businesses are generally expected to show a business vintage (often 1-3 years or more) with verifiable financials. Stable income history makes a stronger application.
Indicative eligibility by loan type
The table below shows typical, indicative guidance only. Actual criteria vary by lender, product variant and individual profile. Figures are not guarantees of eligibility.
| Loan Type | Typical Age | Income / Other Basis | Credit Score |
|---|---|---|---|
| Instant Personal Loan | Varies | Varies by lender | Varies |
| Business Loan for SMEs | Varies | Varies by lender | Varies |
|
Home Loan
Loan tenure may extend till age 70-75 in some cases
|
21 - 65 years at maturity | Stable income; co-applicant helps | 650+ generally preferred |
|
Loan Against Property
Property ownership and valuation are central
|
25 - 65/70 years at maturity | Income to service EMI | 650+ generally preferred |
| Doctor Loan | Varies | Varies by lender | Varies |
|
Car Loan
New cars often LTV up to 80-90%
|
21 - 65 years | Stable income; down payment helps | 600+ generally considered |
| MSME Business Loan | Varies | Varies by lender | Varies |
|
Working Capital Loan
Assessed on sales, receivables and business cycle
|
21 - 65 years | Business cash flow | 600+ generally considered |
Detailed guides per product
Each loan product has its own eligibility page with product-specific criteria:
- Instant Personal Loan eligibility
- Business Loan for SMEs eligibility
- Home Loan eligibility
- Loan Against Property eligibility
- Doctor Loan eligibility
- Car Loan eligibility
- MSME Business Loan eligibility
- Working Capital Loan eligibility
Before you apply
- Check your credit report from credit bureaus for errors and correct them before applying.
- Keep your documents ready - KYC, income proof, bank statements.
- Avoid making several loan applications at once; multiple hard credit inquiries in a short period can affect your score.
- Use our EMI calculator to estimate affordability before committing.
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