A Personal Loan doesn’t need collateral because it’s an unsecured loan. Financial partners evaluate your eligibility based on the –

  • Age
  • Creditworthiness
  • Income, etc.

A loan request gets accepted or rejected depending on these considerations.

Most banks and non-banking financial companies (NBFCs) now provide applicants with an online Personal Loan calculator to help them calculate their monthly EMIs. Enter your information into the respected fields, and in a matter of seconds, you will know how much of a loan you can get without ever having to set foot in the financial partner’s physical location.

Factors Considered for Individual Loan Approval

Though some eligibility requirements are universal across banking institutions and other financial institutions, they might vary depending on the type of financial partner. For Poonawalla Fincorp, the criteria are as follows –

  • Age – 22 to 58 years.
  • Experience: At least one year and two months should be spent with the current employer.
  • Loan Term: 1-6 Years
  • Occupation: People who receive a regular salary from their employer.

List of the Required Paperwork to Apply for a  Personal Loan

  • National Identity Card
  • Authentication of Identity (Passport, Aadhaar card, driving license, etc.)
  • Identification documentation (Passport, Aadhaar card, driving license, etc.)
  • Reports from the banking institution

Conditions Required to Receive a Personal Loan

Your Monthly Income: Most financial partners will look at your net monthly income (NMI) as a significant element in deciding whether to grant you a loan. Loan eligibility begins at ₹20,000 per month, but even a higher salary is no guarantee of approval. There is a strong correlation between debt and income. To improve your loan application, consider applying with a spouse or family member as a co-applicant.

To see how much of a Personal Loan you can afford, enter your annual income into an online Personal Loan EMI calculator.

Credit Rating: How’s your credit rating? Financial institutions evaluate your creditworthiness using a numeric score between 300 and 900. Your loan and credit card repayment history, as well as your payment history for other bills, all go into the calculation of your credit score. The typical cutoff for a decent grade is around 750.

Pre-Existing Bond with the Financial Partner: Your chances of getting loan approval may improve if you have an established working relationship with the financial partners, purchasing a product or taking out a loan. Check the box when utilizing a Personal Loan calculator to determine your qualification.

Interest is computed on the total loan amount at the beginning of the loan. When calculating monthly payments, the total is amortised by the loan’s term in months.

Interest is accrued monthly based on the principal balance using the reducing balance method. Each monthly installment payment (EMI) contributes toward both the goods and the principal owned on the loan. When the loan’s principal balance drops, interest payments reduce.

As a rule, financial institutions compute interest using the diminishing balance approach. When looking for a loan, it is crucial to calculate the entire interest expense. The Personal Loan interest calculator will help you estimate how much you will pay in interest throughout the life of the loan, depending on the interest rate and the loan term.


Utilize a Personal Loan calculator to determine your monthly EMI payment. Once you input the loan amount, the term, and the interest rate, the calculator will immediately provide the EMI, total interest paid, and total repayment amount.

After the loan has been in effect for the minimum time required by the financial partner, you can prepay all or a portion of it. Knowing there’s a prepayment penalty if you want to pay off your loan before the term is up is essential.