Personal loans are provided by various banks and non banking financial companies (NBFCs). There are various factors which effect the your personal loan eligibility. Below mentioned are some of the few factors which the bank or the NBFC will consider while they decide on your personal loan eligibility.

Financial Background

This is the most important parameter that determines if you are eligible for a personal loan and also the quantum of personal loan you are eligible for. It will help the bank understand how well you can pay back your loan. Every bank will have a minimum level of income to be eligible for a personal loan.

Credit History

This will help the bank ascertain your track record for payment of EMI of any loan or the payment of the credit card bills. In case you have paid all your previous EMIs and credit card bills on time, chances of your getting the loan is higher.

Company in which you are employed Personal loan eligibility may depend upon the company you are working for. In case your company is a public ltd or among the A class companies, which the banks call them as, the chances of you getting a loan becomes very easy. If you are working for a B class company, then getting a personal loan may be difficult for you or it maybe costlier also compared to a person who is working in an A class company. Which means that if you are working for a company which belongs to the A class according to the bank, then the personal loan rate would be comparatively lower to a person who belongs to a B class company.

Any other loans you may be holding In case you are having any other loan at the given point of time, then your eligibility for personal loan may go down as you are already paying towards EMI of the previous loan and the income in your hand would be lower compared to a case where you are not paying any EMI.