Written guide · Free
The loan eligibility guide — how lenders really decide your amount
No jargon, no sales pitch. This is the exact framework banks and NBFCs use — FOIR, credit score, income proof and documents — so you know where you stand before you apply.
Step 1
FOIR — the 80% of income rule
Fixed Obligation to Income Ratio is the single number that decides most loan amounts. Here is how it works.
1. Start with net monthly income
The income that actually reaches your bank account after tax and deductions — salary for salaried applicants, average monthly income from ITRs and banking for the self-employed.
2. Apply the 80% limit
Lenders allow total obligations up to a fixed share of income. We assess you at the most generous band — 80% of net income — so you see your true maximum borrowing room.
3. Subtract existing EMIs
Every running EMI — car, personal, credit card, other loans — comes off that 80% limit. What remains is your repayment capacity: the new EMI a lender can offer.
A worked example
- Net monthly income
- ₹1,00,000
- 80% FOIR limit
- ₹80,000
- Existing EMIs
- − ₹10,000
- Repayment capacity
- ₹70,000 / month
A ₹70,000 monthly capacity supports roughly ₹70 lakh of home loan over 20 years at 7.10%, or about ₹33 lakh of personal loan over 5 years at 9.99%. Use the calculator on any loan page to run your own numbers.
Open the eligibility calculatorStep 2
Credit score — where you stand
Your CIBIL score sets the rate band and the lenders available to you.
750 and above
Excellent — best card rates, fastest approvals, widest lender choice.
700 – 749
Comfortable — most banks will lend; rate depends on income stability.
650 – 699
Workable — NBFCs and select banks, often with a co-applicant or slightly higher rate.
Below 650
Needs repair — we identify the cause and rebuild before filing, or use collateral.
Don't know your score? We pull and read your bureau report as part of the assessment — and tell you honestly whether to apply now or repair first.
Step 3
Eligibility by loan type
What lenders look for in each of our 13 loan products. Click through for rates, documents and the calculator.
Home Loan
from 7.10%- Indian resident or NRI, aged 21 to 70 years at loan maturity
- Salaried: minimum ₹25,000 net monthly income with 2 years of work history
- Self-employed: 3 years of business continuity with filed ITRs
- CIBIL score of 700 and above preferred; 650+ considered case to case
Personal Loan
from 9.99%- Salaried applicant aged 21 to 60 years
- Net monthly salary of ₹25,000 or above (₹30,000 in metros)
- Minimum 6 months in current job and 1 year total work experience
- CIBIL score of 720+ for the sharpest pricing
Business Loan
from 14%- Business vintage of at least 2 years at the same line of activity
- Annual turnover of ₹40 lakh or more
- Minimum ₹2 lakh average monthly bank credits
- Filed ITR showing profitability for the last 2 years
Loan Against Property
from 9.25%- Owner of a clear-title, self-occupied or rented property
- Salaried, self-employed professional or business entity
- Age 21 to 70 years at maturity
- Documented income supporting the proposed EMI, or rental income where applicable
CGTMSE Loan
from 8.50%- New or existing micro and small enterprise with Udyam registration
- Manufacturing or service activity (retail trade is now also covered)
- Facility must not be backed by collateral security
- Promoters with a clean credit history and no prior default
Equipment Loan
from 9.50%- Operating business with 2+ years vintage (new units via CGTMSE route)
- Profitable ITR for the last 2 financial years
- Machine supplier quotation or proforma invoice
- Promoter credit score of 700 or above
Working Capital
from 8.75%- Business vintage of 2-3 years with audited financials
- Positive net worth and acceptable current ratio (1.15+ preferred)
- Stock and debtor statements maintainable monthly
- No overdue statutory dues or bank irregularity
Used Car Loan
from 11.25%- Age 21 to 65 years, salaried or self-employed
- Net monthly income of ₹20,000 or above
- 1 year of employment or 2 years of business continuity
- Vehicle age plus loan tenure not exceeding 12-15 years
Balance Transfer
from 8.30%- At least 12 months of repayment track on the existing loan
- No EMI bounce or delay in the last 12 months
- Property and title documents intact with the existing lender
- Current credit score of 700 or above
Top-Up Loan
from 8.75%- Existing home loan or LAP with 12+ months of clean repayment
- Combined exposure within the lender's LTV cap on the property
- Income supporting the enhanced total EMI
- No delinquency on any credit facility
Project Loan
from 9.50%- Promoters with relevant experience in the proposed line of activity
- Promoter contribution of 25-30% of project cost arranged
- Land ownership or long-term lease in place with approvals
- Techno-economic viability demonstrated by a credible DPR
Overdraft Facility
from 8.50%- Business with 2+ years of banking history, or an individual with pledgeable security
- Current account relationship with the lending bank
- Acceptable collateral — property, FD, LIC policy or securities
- Filed ITRs and consistent account conduct
Cash Credit Facility
from 8.75%- Trading or manufacturing business with inventory and receivables
- 3 years of operations with audited financials preferred
- Ability to submit monthly stock and debtor statements
- Collateral security or CGTMSE cover
Step 4
Documents lenders ask for
Having these ready before you apply is the single biggest time-saver — complete files sanction days faster.
Identity & address
- • PAN card
- • Aadhaar card
- • Passport / voter ID / driving licence
- • Address proof — utility bill or rent agreement
- • Passport-size photographs
Income — salaried
- • Last 3 months' salary slips
- • 6 months' salary account bank statement
- • Form 16 or ITR for 2 years
- • Employment ID or appointment letter
Income — self-employed
- • ITRs with computation for 2–3 years
- • 12 months' bank statements
- • GST returns where applicable
- • Business proof — registration, licence or Udyam
- • Audited financials for larger tickets
Secured loans (home, LAP, mortgage, project) additionally need property papers — title deed, agreement, approved plan and tax receipts. Each loan page lists its exact checklist.
FAQs
Eligibility questions, answered
Know where you stand? Let's get it sanctioned.
Share your profile and we will match you to the two or three lenders whose policy actually fits — before any application hits your credit report.