FIRST Millennia
FIRST Classic
FIRST Select
FIRST Wealth


  • Happy Teachers' Day! Thank you for teaching us the value of Savings

  • Home Loans, now at 6.90% p.a.

    Unlimited benefits with a start-to-finish digital process with IDFC First Bank Home Loans

    Home Loan
  • Activate your Credit Card within minutes and enjoy unlimited benefits

  • One FASTag, three payments:Toll, fuel and parking

    The only FASTag with triple benefits

Know the things that affect your personal loan eligibility


A personal loan can help you with a lot - right from realising your life goals to helping you in emergencies. Whether it is a wedding, planning for your child’s education, buying a new phone or paying medical bills, this loan can help.

Getting a personal loan is easy. However, banks and lenders check your eligibility before approving the loan. An issue with your eligibility could hamper your chances of getting the loan.

Read on to know five significant factors that may affect your personal loan eligibility.

1. Your income

A personal loan, unlike a home or auto loan, rarely requires collateral. The bank or the lending entity ensures if your income is sufficient to pay the monthly instalments of the loan. Also, the income requirement for the loan depends on your location. Example: Your income requirement will be higher if you are living in a metro city. The cost of living in the metro cities is relatively higher, and hence the income needs to be more for your loan to be approved.

2. Your age

In most cases, lenders prefer applicants who fall between the age-bracket of twenties to fifties. The age limit increases in case you are self-employed, and even extends up to 65 years if you own a business. Also, the banks might consider the profession and scale of your business before approving the personal loan.

3. Your employment status

Along with your income, your employment status is also important. Being employed with an MNC or any reputed private or public-sector company can portray you as a reliable borrower. If you’re a self-employed individual and have a stable business income, lenders will be likely to approve your application.

4. Your credit score

The credit score indicates your credibility and trustworthiness. The credit bureau considers your previous credit history, including the loans you have taken, the credit cards you have applied for, your credit utilisation and how diligent you have been with your EMIs and credit card bills when assigning you the score. Also, known as CIBIL score, the higher the score, the better are your chances of approval. Generally, a score above 700 is considered good. If your score is low, even if the personal loan gets approved, the rate of interest may be high.

5. Your existing liabilities

Lenders consider your current liabilities as well before approving your loan. They check if you already have a loan. If yes, the lender will scrutinise your income to assess, to gauge if you would be able to repay the personal loan you have applied for.

Once the bank deems you eligible, your loan is approved, and the amount is credited directly to your bank account.



The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.