The eligibility criteria for availing Personal Loans vary from bank to bank. There are a few common guidelines which the majority of the lenders follow when it comes to approving a Personal Loan.

The basic variables that determine an individuals’ eligibility for applying a Personal Loan are:

• Age Criteria: The main guideline followed by most banks and other financial institutions is that for availing a Personal Loan, a salaried individual must be between the age group of 21 years to 60 years while for a self-employed person it has to be within 25 years to 65 years of age.
• Credit Rating: The credit history of an applicant is an important aspect that lenders look into while approving Personal Loans. Delays and defaults in paying monthly EMIs of other loans or credit card dues are considered which can lower the eligibility for Personal Loans from banks and other financial institutions. 
• Employment Stability: The employment stability of the person who takes loan also forms a crucial eligibility criterion. According to the banks and other financial institutions, a salaried person with a minimum of 2 years of service with 1 year in the current profession and a self-employed person with a minimum of 5 years of total earning tenure with at least 2 years in the current profession is eligible for taking a Personal Loan.
• Employer: As a Personal Loan is an unsecured loan, thus the kind of employer the applicant is working with is given due credit while taking a decision on the eligibility criteria for Personal Loans. The employees in the public sector who are working with established private companies are better eligible for availing Personal Loans as compared to others as there is stability in their income.
• Financial Situation: The financial condition determines the loan repayment capacity of an individual who has taken a loan and hence the lenders give maximum importance to this aspect while giving an unsecured Personal Loan to any individual.