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Personal loan eligibility: salary, CIBIL score and FOIR

By Andrii Kuratov · Last reviewed: 6 July 2026 · ~6 min read

Andrii Kuratov builds EasyEMI and personally reviews every guide — see methodology & sources.

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. RBI-regulated lenders cap your total EMIs — including the new loan — at roughly 40–50% of income. So:

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:

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.

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.

How lenders apply FOIR at different incomes

The 40–50% cap is not one fixed number — lenders flex it with income. On a modest take-home, most of the salary is already committed to rent and running costs, so FOIR is commonly held to 40–50%; for high earners a bigger slice is spare, and many lenders stretch the cap to 60–70%.

A worked example: your take-home is ₹40,000 and a ₹9,000 car EMI is already running. At 50% FOIR the lender allows ₹20,000 of total EMIs, so ₹11,000 of headroom remains for the new loan. At an illustrative 14% over 5 years, an ₹11,000 EMI services a personal loan of about ₹4.7 lakh:

Closing the car loan first nearly doubles the eligible amount, and a lender applying 40% instead of 50% cuts it by more than a third — one reason two lenders can quote the same person very different amounts.

Eligibility when you are self-employed

The framework — income, score, FOIR — stays the same, but the proof changes. In place of salary slips, lenders typically ask for 2–3 years of income-tax returns, a business vintage of at least 2–3 years, and 6–12 months of bank statements showing steady banking turnover. Income is read off ITR net profit and account credits, so a business that books expenses aggressively to save tax also shrinks the loan it qualifies for.

Because self-employed income is lumpier than a salary credit, rates usually sit a notch above salaried offers at the same score. Banks are strictest on documentation; NBFCs are more flexible on vintage and turnover, but price that flexibility as a higher rate.

Employer category and salary mode

Lenders also grade salaried applicants by who pays them, and how:

• Government, PSU and listed-company employees — treated as the most stable earners, so they typically see the lowest rates and the most generous eligibility.
• Salary-account holders — your own bank watches the credit arrive every month, which is why pre-approved offers with minimal paperwork usually come from it first.
• Cash salary — with no bank trail to verify, most mainstream lenders decline; options narrow to a few NBFCs at steep rates. Even six months of bank-credited salary improves the picture.

Co-applicants and other levers

If the sanctioned amount falls short, three levers genuinely move it:

• Add a co-applicant. An earning spouse or parent lets the lender club two incomes, widening the FOIR headroom.
• Stretch the tenure. ₹5 lakh at an illustrative 14% costs about ₹17,089 a month over 3 years but ₹11,634 over 5. The longer term fits a tighter FOIR, though total interest climbs from about ₹1.15 lakh to ₹1.98 lakh — test both in the personal loan EMI calculator.
• Clear card balances first. Credit-card dues count towards your obligations and push utilisation up; paying them down before applying improves both your FOIR and your score.

Why applications get rejected

Most rejections trace back to a short list:

• FOIR already stretched — existing EMIs plus the new one breach the lender's cap; trim obligations or ask for less.
• Too many recent enquiries — several applications within a few months each leave a hard enquiry and read as credit-hungry, so space them out.
• Unstable employment — under 6–12 months with the current employer worries lenders, whatever the salary.
• A thin file — no borrowing history gives the score nothing to work with; see what a good CIBIL score looks like.

The rejection itself is not recorded on your credit report, but the enquiry behind it is — fix the cause before you reapply.

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.