Not everyone has funds available on the go to take care of life’s pressing concerns. These matters can range from an upcoming wedding, renovation of a home, paying for online courses or even medical emergencies. 

However, these things can’t be ignored and must be tended to. One of the better ways to deal with these issues is to take out a Personal Loan. Banks and financial institutions offer collateral-free Personal loans up to Rs 50 Lakhs for individuals to deal with whatever issues they have. The good thing about Personal Loans is that there is no restriction on fund usage.

However, before applying for a Personal Loan, one must check out the eligibility requirements of a bank or a financial institution. Once you are sure that you do meet the requirements, then only should you apply, otherwise the application could get rejected and you don’t want too many rejections on your file.  

Banks like ICICI have different eligibility criteria for salaried and self-employed individuals.

For a salaried individual the minimum requirements for a Personal Loan are as follows:

Eligibility Criteria Salaried Professional
Age Range 23-58 years
Minimum Salary Rs.30,000 (Differs depending upon the customer profile)
Minimum years in job/profession 2 Years
Years in current residence 1 Year


For a self-employed the eligibility criteria for a personal loan is as follows:

Eligibility Criteria Self Employed
Age Range 28-65 years (for self-employed individuals); 25-65 years for doctors
Minimum turnover Rs 40 Lakh for non-professionals and Rs 15 Lakh for professionals; as per audited financials. 
Minimum profit after tax Rs 2 lakh for Proprietorship Firm/Self-employed Individuals and Rs 1 lakh for non-professionals as per audited financials
Business Stability In current business for at least 5 years and minimum 3 years for doctors
Existing relationship with ICICI Bank Minimum 1 year liability relationship (current or savings account) or Asset relationship (loan) either live or closed in the last 36 months; repayment track as required

Some other things that banks or financial institutions consider when they evaluate your Personal Loan application are your credit score and debt-to-income (DTI) ratio. Keep your credit score as high as possible, and your DTI ratio on the lower side. A good credit score shows that you have been a responsible borrower in the past, while a low  DTI ratio shows what part of your monthly income is spent on meeting your expenses.

Once you know that you do meet the eligibility criteria for a Personal Loan, depending upon whether you are a salaried individual or a self-employed one, you would need to produce the following documents to get your process started.

The documents required by a salaried individual are;

  • Proof of Identity – Passport / Driving License / Voters ID / PAN Card (any one)
  • Proof of Residence – Leave and License Agreement / Utility Bill (not more than 3 months old) / Passport (any one)
  • Latest 3 months Bank Statement (where salary/income is credited)
  • Salary slips for last 3 months
  • 2 Passport Size photographs

The documents required by a self-employed individual applying for a loan are;

  • KYC Documents – Proof of Identity; Address proof; Date of Birth proof
  • Proof of Residence – Leave and License Agreement / Utility Bill (not more than 3 months old) / Passport (anyone)
  • Income proof (audited financials for the last two years)
  • Latest 6 months Bank statement
  • Office address proof
  • Proof of residence or office ownership
  • Proof of continuity of business

Do keep in mind that banks can also ask for additional documents; just what those documents are, is the bank’s discretion. 

Once you have decided on a bank or financial institution of your choice for a Personal Loan where you meet the eligibility criteria and have submitted the documents required, your application process will begin. Once your Personal Loan application is approved, you can get funds disbursed to your account very quickly.