Loan eligibility: what lenders usually consider
There is no single eligibility rule for loans in India. Each bank and NBFC applies its own credit policy and assessment. This guide explains the factors lenders commonly look at, so you know what to expect.
Personal loans
- Regular, verifiable income from salary or profession
- How long you have been in your current job or practice
- Existing EMIs compared with your income
- Your repayment history on past and current credit
- Age and residency as per the lender's policy
Business loans
- How long the business has been operating
- Turnover, profitability and cash flow
- Banking history and existing business borrowings
- Credit history of the business and its promoters
- Registrations, returns and financial statements, as applicable
Factors explained
- Age and residency
- Lenders set their own age limits and residency requirements.
- Income and employment stability
- Regular income from salary, profession or business, and how long you have earned it.
- Business vintage and performance
- For business loans: how long the business has operated, turnover and profitability.
- Existing liabilities
- Current EMIs and obligations, which affect how much you can comfortably repay.
- Credit history
- Where assessed by the lender, your repayment track record on past and current credit.
- Product-specific documents
- KYC, income proof and, for secured loans, property documents as requested by the lender.
About credit checks
Submitting an enquiry on this website does not involve a credit bureau check. If you later apply to a lender, the lender may check your credit report as part of its assessment, which can be recorded as an enquiry on your credit report. We will tell you before any application is submitted.
Meeting general criteria does not guarantee approval. The lender alone decides eligibility and terms.
Start an enquiry