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What Affects Your Personal Loan Approval

By Finserv MARKETS - Mar 28,2020
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What Affects Your Personal Loan Approval

The process for personal loan approval involves looking at tens of thousands of applications. Trustworthy lenders are scrupulous in their approval process, and they have certain eligibility criteria for borrowers to avail of a personal loan. There are different factors that can affect how likely it is for a lender to approve of your personal loan application. By keeping the following points in mind, you can ensure instant personal loan approval with the right lender.

Your Age

Like it is with most financial instruments, your age affects whether or not you will be granted approval for a personal loan. Most lenders have eligibility criteria regarding the age of their borrowers. For instance, if you opt for the Bajaj Finserv Personal Loans available on Finserv MARKETS, you would need to be aged between 23 and 58 years old to avail of the loan.

Age matters because it provides lenders with some probable insight into your earning ability and financial stability. 20-year-olds seeking a personal loan might not have financial security, but have enough time on their hands to earn back the money and pay off the loan. On the other hand, those who are above the average retirement age or are approaching it might have financial stability but may not have an earning window to pay back the loan. Hence, the age requirement typically peaks at 55-58 years for personal loans.

Your Occupation

When it comes to occupational requirements for personal loan approval, borrowers typically have to prove that they have a steady source of income. Your current employment as well as prior work experience matters in gauging your financial stability. Lenders often look into the organization, company or individual you work with. This ensures that their assessment is informed and fair.

Suppose the company you work at is a large corporate with a good credit history, then you are likely to avail of the loan, If the organization you work at has a bad financial history, wherein it has not proven to be financially sound, and salary payments to employees are often delayed, your lender can choose to deny your personal loan application. All of these factors affect whether or not you will be able to pay off your personal loan EMIs, hence, they are important.

Your Income Per Month

Job stability is one facet that lenders look at. Another is the amount of income you earn each month. This might seem brash on its own which is why the income you earn is weighed against the living expenses in the city you reside in, as well as the lender’s minimum criteria for monthly income. If you live in an expensive city, then this minimum requirement might be higher, whereas individuals living in less developed areas who do not have a high cost of living might benefit from a lower monthly income requirement.

One personal loan online approval tip that may serve you well is to show multiple sources of income. Whether it be from a side-business, leased-out property, or investments, showing more than one source of income shows your lender that you haven’t put all your eggs in one basket. In case one stream of income dries up, you are equipped with a backup. This supports your financial stability assessment and makes you more likely to receive personal loan approval.

Your Credit Score

Personal loans are unsecured in their funding. In case you cannot pay the lender back, they cannot take hold of your property or any other assets as collateral. Hence, the only way for lenders to assess if you are a conscientious borrower who will pay back your debt is to look at your credit score. This number is indicative of your repayment track record. A credit score of 750 or higher is considered very good and should allow you to avail instant personal loans.

If you have a high credit score, it shows that you are good at paying back your credit card bills, any personal or travel loans, and other borrowed funds. It also shows that you are good at managing your debt, as you systematically pay back the money you owe. If you have a low credit score, you are likely to be rejected for a personal loan. Borrowers are mindful that youngsters who are looking to avail a personal loan might not have a credit score yet. In such cases, the borrower will look at other criteria before considering personal loan online approval.

Your Debt-to-Income Ratio

This is another aspect similar to your credit score. It is a ratio indicating how much you owe others in debt versus how much you make from your work. Lenders are unlikely to give out loans to individuals who have too many debts to pay back as these financial obligations might prevent them from paying back newly-acquired loans on time.

To calculate your debt to income ratio, divide your total outstanding debt by your annual income. If you have chosen to pay out certain loans in EMIs, calculate the total debt you pay each month by adding these EMIs and divide that by your monthly income. If your ratio is around 50% or 1/2, then you are at the cutoff. Anything higher is worse, and anything lower is ideal for a personal loan online approval.


Thus, it is essential to stay apprised of the eligibility criteria you would need to meet in order to avail of a particular loan. Your debt-to-income ratio, credit score, age, occupation etc. can play a role during the assessment of your ability to repay the loan in a timely manner. Keeping all of the aforementioned factors in mind, you can apply for the personal loan on Finserv MARKETS. Bajaj Finserv Personal Loans on Finserv MARKETS offer low-interest rates, flexible tenures for repayment, and instant loan approval within 3 minutes, provided you fulfill the personal loan eligibility criteria. You can even make use of the personal loan eligibility calculator to determine if you meet the given criteria.

Apply for a Personal Loan

Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.


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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522