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Personal loan eligibility: salary, CIBIL score and FOIR
A personal loan is unsecured — there is no asset backing it — so lenders lean heavily on three things: your income, your credit score, and how much of your income is already committed (your FOIR). Here is how each works and the income a ₹5 lakh loan actually needs.
1. Income — the minimum, and what really matters
Most lenders set a minimum net monthly income of about ₹15,000–₹25,000 for salaried applicants (higher in metros or with premium lenders). But clearing the minimum is not the same as qualifying for the amount you want — that comes down to FOIR.
2. FOIR — the EMI ceiling
FOIR (Fixed Obligation to Income Ratio) is the share of your net income already going to EMIs. Lenders cap your total EMIs — including the new loan — at roughly 40–50% of income. So:
| Loan (5 years @ 14%) | EMI | Net income at 50% FOIR | Net income at 40% FOIR |
|---|---|---|---|
| ₹5,00,000 | ₹11,634 | ₹23,268 | ₹29,085 |
If you already pay ₹8,000 in other EMIs, that eats into the same ceiling — so existing loans directly reduce how much you can borrow.
3. CIBIL score — the rate you are offered
Because the loan is unsecured, your CIBIL score carries a lot of weight:
| Score | What to expect |
|---|---|
| 750+ | Best approval odds, lowest rates |
| 700–749 | Usually approved, higher rate |
| 650–699 | Harder; expect steep rates or a co-applicant |
| Below 650 | Often rejected by mainstream lenders |
A higher score does not just help approval — it lowers your rate, which lowers your EMI and raises how much you qualify for. See what counts as a good CIBIL score.
Check what your target EMI costs. Enter the amount, rate and tenure to see the EMI — then confirm it sits under ~50% of your net income.
Open the Personal Loan EMI Calculator →Other factors lenders check
- Employment stability — a salaried job with a recognised employer, usually 1–2 years of work history.
- Age — typically 21 to 60 for salaried borrowers.
- Debt-to-income trend — too many recent loan enquiries or maxed-out cards hurt.
- Documents — PAN, Aadhaar, salary slips, and 3–6 months of bank statements.
Watch the real cost, not just eligibility
Personal loans carry the highest rates of any common loan and often a processing fee, so the headline rate understates the true cost. Always compare on the APR, and be sure the rate is quoted on a reducing basis — see flat vs reducing balance rates, where a 14% flat rate is really about 23% reducing.
Frequently asked questions
What is the minimum salary for a personal loan in India?
Most lenders require a net monthly income of about ₹15,000 to ₹25,000 for salaried applicants, though metros and premium lenders may want more. Beyond the minimum, what matters is whether the EMI fits your FOIR: for a ₹5 lakh loan over 5 years at 14% (EMI about ₹11,634), you would typically need a take-home of around ₹23,000 to ₹29,000 with few other EMIs.
What CIBIL score is needed for a personal loan?
A CIBIL score of 750 or above gives the best approval odds and the lowest rates. Scores between 700 and 749 can still be approved, often at a higher rate. Below 700, approval is harder and rates are steep. Because personal loans are unsecured, lenders weigh the credit score heavily.
How is personal loan eligibility calculated?
Lenders combine your net income, existing EMIs (via the FOIR or fixed-obligation-to-income ratio, usually capped at 40–50%), credit score, employment stability and age. The FOIR sets the maximum EMI you can take on; the loan amount is then back-calculated from that EMI, the offered interest rate and the tenure.
EasyEMI is an estimator for information only and is not financial advice. Eligibility criteria vary by lender; figures are illustrative as of June 2026. See our About page for methodology.