There are many advantages in taking personal loans. The rate of interest of a personal loan is lesser than the credit card and it can be repaid through a predictable schedule. Therefore, many individuals prefer to take personal loans, however not all might be able to pass personal loan eligibility criteria.

To avail the benefits of personal loan it is important to note that the individual, as a responsible borrower, must be ready to pay back the loan within the scheduled period. Only under unforeseen situations can he or she be allowed to repay the loan after the stipulated time period.

Such issues must be corrected soon so that you fulfil the criteria for eligibility for personal loan.

What is personal loan eligibility?

According to RBI, the following eligibility criteria should be held as basic factors while deciding who should be allowed to take a personal loan:

  1. The profession of the individual must be either salaried worker in government or private or MNC; or self-employed like doctors, CA, CS, etc.
  2. They must be between the ages of 21 and 60
  3. They must be earning Rs. 25,000 per month by salary or earning Rs. 5 lakhs annually if they are professionals
  4. They must be experienced in their respective fields for at least three years
  5. They must have a minimum CIBIL Score of 650
  6. There EMI percentage of income must be at the most 65%

How can paying off existing loans help in personal loan eligibility?

If all the above-stated eligibility criteria are taken into consideration, it can be noted that all except criteria no.5 are with respect to each situation. However, the maintenance of CIBIL score is the responsibility of the borrower.

CIBIL scores are three digits numeric summary of a borrower’s credit history. This means that over time, as the borrower enlists more and more loans for himself, his habit of repaying the loans and other associated factors like whether the payment is being made in a timely fashion or not is closely monitored. The collected data is then presented in the form of a numeric summary, that is, by the Credit Information Bureau (India) Limited.

Why is CIBIL Score important?

CIBIL Score or CIR (Credit Information Report) is an important data document for the creditors. When they are approached by a borrower for a loan, they can review the CIR of the borrower to determine whether it will be beneficial to lend money or not.


As stated above, as a borrower you must make sure that all your existing personal loans are being repaid on time and in a proper manner. This will help you in maintaining the CIBIL score that is necessary, in case you need another personal loan in the future. Therefore, keep a close eye on your habits that may or may not be affecting your personal loan eligibility.