Personal Loan Eligibility Criteria And Documents Required | MoneyTap

Personal Loan Eligibility

How do banks calculate your personal loan eligibility? Learn about the basic calculations banks use to determine whether you are eligible for a personal loan or not.

How Your Personal Loan Eligibility is Determined

All banks, before they give you any kind of a loan, check whether you have the capacity to repay – after which they will figure out if you are eligible for their loan or not.

So, how do they decide on your loan eligibility? There are several criteria they consider, but most importantly they use some basic calculations to determine whether you have the financial capability to repay the loan. You can also check your personal loan eligibility by making use of personal loan eligibility calculators which are available for free online.

3 Basic Calculations Used by Banks to Determine Your Loan Eligibility

  • hand

    Instalment to Income Ratio (IIR)

    By calculating the IIR, the banks determine your repaying capacity. It is based on the understanding that the loan value does not to exceed your repaying capacity. The ratio is usually 33% to 40% of your monthly income. The banks use the IIR to decide on the loan amount and the repayment amount.

  • hand rupee

    Fixed Obligations to Income Ratio (FOIR)

    While deciding your loan eligibility, the banks use FOIR to determine if you have any other loans that you are repaying. FOIR is the most popular calculation used by the banks to decide whether you have the income capacity to repay the loan.

  • loan

    Loan to Cost or Loan to Value Ratio (LTC or LTV)

    This calculation is used by banks to determine your eligibility for home loans. Here, to decide the loan amount, the value of the property is considered. However, to determine your repayment capacity, your income is considered.

    While most of the banks and NBFCs offer personal loans, you can avoid unnecessary visits to the banks and rush around the documentation by using MoneyTap, the fastest and the simplest way to apply for a personal loan. To avoid getting your application rejected, you need to meet certain parameters of eligibility and documentation.

MoneyTap – Eligibility Criteria

  • age


    Above 23 years and below 55 years.

  • salary


    In-hand salary of ₹ 20,000/month.

  • employee

    Nature of Employment:


    With a minimum monthly salary of ₹ 20,000.

    Self- Employed:

    Professionals, such as doctors, lawyers, shop owners, business owners, etc. with a minimum income of ₹ 20,000. Non-Eligible: Manual labourers, Skilled labourers, Tea stall/Juice/Paan/Butcher shop owners, Caretakers, Loco Pilots, Drivers, Lab Attendants, Hawaldars, Sepoys, Constables, Office Assistants, Property Dealers, Travel Agents, Insurance Agents, Contractors, Astrologers, Yoga/Gym Instructors, Priests, Field Sales Executives and Pawn Brokers.

  • time

    Work Experience and Duration:


    Should be in the same job for 6 months and overall work experience of 2 years.


    Should be in the business for a minimum of 3 years with work experience of 3 years.

  • location


    You need to be a resident of any of the following cities:

    Ahmedabad, Ambala, Anand, Aurangabad, Bengaluru, Bharuch, Bhopal, Bhubaneshwar, Chandigarh, Chennai, Coimbatore, Dehradun, Delhi, Erode, Faridabad, Gandhinagar, Greater Noida, Ghaziabad, Guntur, Gurgaon, Guwahati, Haridwar, Hyderabad, Indore, Jaipur, Jodhpur, Kochi, Kolhapur, Kolkata, Lucknow, Mangalore, Mohali, Mumbai, Mysore, Navi Mumbai, Nagpur, Nashik, Noida, Panchkula, Pune, Raipur, Rajkot, Salem, Secunderabad, Surat, Thane, Tirupati, Trichy, Vadodara, Vijayawada, Visakhapatnam.

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Personal Loan Eligibility Documents Required for MoneyTap’s Personal Line of Credit (Personal Loan)

Following are the personal loan documents required:

  • aadhar

    Aadhar card

  • home

    Address proof

    (Driving license/Voter's ID/Passport/Aadhar/Utility bills/Scheduled bank statements)

  • photo req

    Original photograph

  • aadhar

    Identity proof

    (Driving license/Voter id/Passport/Aadhar/PAN)

  • banking

    Your account's internet banking information

  • email

    Company name and email address

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