Getting a personal loan could be a cumbersome task. You might have received a lot of calls for taking loans, but the moment when you need them, the list of documents is endless. Many times we reach to the last scrutiny part and the loan is rejected. Understanding the factors mentioned in this post will help you get a personal loan easily.

First and foremost, it is important to state why do you need a personal loan. Personal Loan is a non-secured loan and can also have higher interest rates. A personal loan has an average loan interest of 15% and in most cases can go up to 22% or more. 

How much personal loan do you need?

Once you have figure out the need of the loan that you need it is important to check the eligibility of the loan. That is if it does match the maximum limit of the loan that you can receive according to the documents and income proof that you have provided. In most of the cases the failure to receive the loan because the limit does not match.

Read here to understand the maximum limit of the loan that you can receive. There are different factors that affect the limit of the loan. Find the detailed factors and their explanation in this article. You might also need the help of the loan calculator. Check your eligibility with HDFC Loan Calculator here.

Calculate the estimated EMI

EMI is the major factor that decides the limit of the loan, with the calculator you can also understand the outflow of EMI each month. The average EMI limit is about 50% of the income. So, if the EMI is higher than the 50% of the income, much likely the proposal for a personal loan would be rejected. 

Factors that you should take care for loan not to be rejected:

Salary / Self Employed:
It is easier to get a personal loan when you are salaried. Again banks to banks the criteria might change. Having a job experience of 3 years and above helps to get personal loans easily. In the case of the Self Employed a similar experience and a turnover of around 25 Lakhs help. In case of salaried most, NBFC and banks give loans to people who have a salary of 25000 INR or above.

Place of Residence:
The documents of the place of residence should be clear. The name of the borrower should be clearly mentioned in the legal documents of the residence. For e.g. Light Bills, Aadhar Card, Telephone Bill, Mobile Bills (Only Billing Accounts).

Usually, Residence which is rented might have to provide additional documents, make sure all the documents are ready before processing. This will save time for processing. 

Current EMI:
If there are additional Loans active, the EMI’s of those loans are taken into consideration. Even credit card dues are taken into consideration. The amount of minimum pay for the credit card is also taken into consideration. If the amount does not have enough buffer from your salary post the EMI’s the limit of the loan reduces.

Some additional factors (need not be applied every time but do matter):

Frequency/Timing of Salary: These days there are a lot of companies that struggle to pay on time due to the financial crisis. The Loan giving institutes do take care of the fact if the salaries are on time. A miss match in the salary date can lead to rejection of the loan.

Continuity of service:
It is very important to understand that even if you have a job experience of more than 3 years, there can be Banks and NBFC that will check the tenure of the current job. A tenure under 6 months might lead to the rejection of the loan. Some institutes might have a lighter check up to 3 months for the service, but anything less than 3 months is mostly rejected. Keep note, while changing jobs that you don’t have a requirement for the immediate loan. In unavoidable circumstances where you have changed a job recently and the requirement has arisen you can probably look for peer lending. 

The sector of the Company:
The Sector of the company does matter if the loan amount is more. The sector should not be hit by the recession. Like some industries in 2008, this can influence the decision of processing a loan.

Number of Employees in the Company:
Once with an interaction with the loan processing institute, I figured out that the loan was not processed because the individual was working in a company having less number of employees. This is usually the case for the people working in startups these days where the team size are between 5-10 people. But, these factors might come into play when the loan amount is on the higher side.


If the documents are clear and precise there are companies who can disburse loan inside 4 days but depends on the external conditions and holidays as well. The loan industry in India has picked up, but having basic documentation in the right format is a must. Rest, hope all your queries are resolved. If there are any problems, do comment on your queries below.

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