Planning a personal loan in 2026? Whether it’s for wedding expenses, medical emergency,
home renovation, education needs, or debt consolidation, one thing is common:
You want approval quickly and the best interest rate.
But here’s the frustrating part: many people get rejected even when they have a job and a decent salary. That happens because banks don’t approve loans based on “salary only”. They approve loans using a risk formula.
minimum salary ₹15,000–₹25,000 (higher in metro cities),
CIBIL score 700+ (best at 750+),
stable job 6+ months, and your EMI/FOIR should ideally stay under 50–60%.
What is Personal Loan Eligibility?
Personal loan eligibility means the criteria banks and NBFCs use to decide if you qualify.
Since personal loans are unsecured loans (no collateral), lenders take a higher risk —
So they carefully check your repayment capacity.
Key Eligibility Criteria (2026) – What Banks Actually Check
✅ Strong approval signals
- CIBIL score 750+
- Salary credit every month (stable)
- Low EMI burden (FOIR under 45–50%)
- Permanent job + reputed employer
- Clean bank statement (no bounces)
❌ Rejection triggers
- Low CIBIL / late payments
- Too many recent loan enquiries
- High credit card utilization (50%+)
- Job change in the last 0–3 months
- KYC/address mismatch
1) Age Limit for Personal Loan in India (2026)
This is a basic filter. Even a good profile can get rejected due to the age criteria.
| Category | Minimum Age | Maximum Age | Practical Notes |
|---|---|---|---|
| Salaried employees | 21 years | 60–65 years | Some lenders allow up to retirement age |
| Self-employed professionals | 25 years | 65–70 years | Strong ITR + stable practice improves approval |
| Self-employed business owners | 25 years | 65–70 years | Business vintage matters a lot (2–3+ yrs preferred) |
2) Minimum Salary Required for Personal Loan (2026)
Minimum salary depends on your city tier and lender policy.
Metro cities often need higher salaries but offer higher loan limits.
| City Type | Typical Minimum Salary | Typical Loan Range |
|---|---|---|
| Metro cities | ₹25,000 – ₹30,000 | ₹50,000 to ₹40 Lakhs |
| Tier-1 cities | ₹20,000 – ₹25,000 | ₹50,000 to ₹25 Lakhs |
| Tier-2/3 cities | ₹15,000 – ₹20,000 | ₹30,000 to ₹15 Lakhs |
A ₹40k salary with high EMIs can get rejected, while ₹25k salary with clean profile can be approved.
3) CIBIL Score Requirement for Personal Loan (2026)
Your CIBIL score (300–900) is like a financial report card.
In 2026, many premium lenders don’t seriously consider applications below 700.
| CIBIL Range | Approval Chances | Interest Rate Expectation | Loan Amount Chances |
|---|---|---|---|
| 750 – 900 | Very High (90%+) | Lower bracket | Higher limits possible |
| 700 – 749 | High | Medium bracket | Standard limits |
| 650 – 699 | Moderate | Higher bracket | Lower limits |
| 600 – 649 | Low | Very high / restricted | Very limited |
| Below 600 | Very Low | 20%+ or rejection | Mostly rejected |
4) Employment Stability Rule (This decides instant approval)
- Salaried: 6 months to 1 year in current job is preferred; 2 years total experience helps
- Self-employed: business/profession running for 2–3+ years gives strong eligibility
- Permanent job: preferred over contract/probation employees
5) FOIR Rule (EMI-to-Income Ratio) – The Real Eligibility Formula
FOIR = Fixed Obligation to Income Ratio. This decides whether you can “afford” another EMI.
In simple terms: how much of your salary is already locked in EMIs?
| Monthly Income | Typical Max FOIR Allowed | Meaning |
|---|---|---|
| Up to ₹50,000 | 50% | Strict |
| ₹50,000 – ₹1,00,000 | 55% | Moderate flexibility |
| Above ₹1,00,000 | 60% | Higher tolerance |
✅ FOIR Example (Simple)
Salary: ₹60,000; existing EMIs: ₹20,000 = FOIR: 33%.
You may still qualify for additional EMI around ₹10,000–₹12,000, depending on the lender.
How Much Personal Loan Can You Get? (2026 Estimate Table)
Most lenders approve a personal loan amount based on salary, CIBIL, and FOIR.
A common practical thumb rule:
10× to 15× of the monthly salary (if profile is clean).
| Monthly Salary | Estimated Loan Amount | Typical EMI (3 years) | Typical EMI (5 years) |
|---|---|---|---|
| ₹25,000 | ₹2 – ₹3 Lakhs | ₹6,900 – ₹10,300 | ₹4,650 – ₹6,900 |
| ₹40,000 | ₹4 – ₹6 Lakhs | ₹13,700 – ₹20,600 | ₹9,300 – ₹13,900 |
| ₹60,000 | ₹7 – ₹10 Lakhs | ₹24,000 – ₹34,300 | ₹16,200 – ₹23,200 |
| ₹1,00,000 | ₹12 – ₹20 Lakhs | ₹41,200 – ₹68,600 | ₹27,900 – ₹46,500 |
Documents Required for Personal Loan (2026 Checklist)
| Document Type | Salaried | Self-Employed |
|---|---|---|
| Identity Proof | Aadhaar, PAN, Passport, Voter ID | Aadhaar, PAN, Passport, Voter ID |
| Address Proof | Aadhaar, utility bills, and rent agreement | Aadhaar, utility bills, property papers |
| Income Proof | Salary slips (last 3 months) | ITR (last 2 years) |
| Bank Statement | Last 6 months | Last 6–12 months |
| Employment / Business Proof | Office ID/employment letter (if asked) | GST / business registration (if applicable) |
Most Common Personal Loan Rejection Reasons (And Fix)
1) Low CIBIL score
Fix: Pay all EMIs/credit card bills on time for 6 months, keep utilization below 30%, and dispute errors in the credit report.
2) High existing debt (FOIR too high)
Fix: Close small loans/BNPL, reduce outstanding, apply for a smaller amount, and consider debt consolidation.
3) Unstable job / short tenure
Fix: Wait 6–12 months in the current job. Avoid applying in the first 0–3 months after a job change.
4) Documentation mismatch
Fix: Ensure name/address matches across PAN, Aadhaar, salary slips, and bank records.
5) Too many loan enquiries
Fix: Stop applying everywhere. Wait 3–6 months, use eligibility calculators (soft checks), and apply to only 1–2 lenders.
Red Flags That Destroy Approval Chances (Even With a Good Salary)
- Cheque bounces in the last 6 months
- Credit card “settlement” history
- Frequent cash deposits (income looks suspicious)
- Income-expense mismatch in the bank statement
- Too many enquiries in the last 3 months
- Risky loan purpose (trading/crypto/gambling)
Smart Strategies to Get Instant Personal Loan Approval (2026)
- Check eligibility first using bank calculators (avoid hard enquiries)
- Apply for the right amount (smaller amount = higher approval)
- Apply from the salary account bank first (best chance)
- Apply after salary credit (balance looks strong)
- Avoid month-end (banks overloaded)
- Consider a co-applicant if the profile is borderline
- Compare processing fee + foreclosure rules before accepting the offer
Personal Loan Myths Debunked (Truth for 2026)
Myth: “750+ CIBIL is compulsory for any loan”
Truth: 750+ is best, but loans can still be approved at 700 or even 650 (higher interest + lower amount).
Myth: “Eligibility check will reduce score.”
Truth: Soft checks do not reduce score. Only formal applications create hard enquiries.
Myth: “Self-employed can’t get a personal loan.”
Truth: They can. But the documentation requirement is higher (ITR + business proof).
Myth: “Take the maximum loan you are eligible for.”
Truth: Take what you need. Maximum loan sizes increase stress, costs, and risk.
Step-by-Step: How to Apply for a Personal Loan in India (2026)
- Check your CIBIL score
- Calculate the requirement (don’t borrow extra)
- Check FOIR and EMI affordability
- Compare 3–5 lenders (interest + processing + prepayment)
- Check eligibility (calculator)
- Prepare documents (digital + physical)
- Apply (online is fast, offline helps if a complex profile)
- Verification call/home/office check
- Approval and disbursal (often within 24–48 hrs if profile is clean)
Related MoneyLoot Guides (Internal Links)
FAQs – Personal Loan Eligibility in India (2026)
Can I get personal loan with 650 CIBIL score?
Yes, it’s possible, but harder. You may get higher interest rates and a lower loan amount. If possible, improve your score for 3–6 months first.
How much loan can I get on ₹50,000 salary?
If your profile is clean and FOIR is low, a ₹50,000 salary can typically get around ₹6–₹10 Lakhs. The exact amount depends on the lender and your existing EMIs.
What documents are mandatory?
PAN + Aadhaar, address proof, income proof (salary slips/ITR), and 6 months bank statement are the basics.
Fatafatloot Verdict (2026)
Personal loan eligibility in India is a simple formula:
CIBIL + Stability + FOIR.
If you maintain a clean repayment history, stable salary credits, and a low EMI burden, approval becomes predictable, and interest rates improve automatically.
Joginder Poswal is an IT professional who became an advocate, aiming to make digital and legal topics easier to understand for Indians. With over 15 years of experience in IT infrastructure and a law degree, he focuses on cybersecurity, digital compliance, and fintech solutions. He shares practical advice on how technology and finance work together within Indian regulations.