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16 Crore Indians “Credit-Underserved”- Increase in Loan Opportunities

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A recent study released by TransUnion Cibil research showed that over 16 crore Indians are “credit-underserved,” meaning individuals who are yet to begin a credit history. As a result, there is an increase in market opportunities for personal loan lenders and credit cards. 

Personal Loans are undergoing rapid growth due to easy and digital processes. Since it is an unsecured loan where no collateral is required, it is easily accessible when you need urgent funds. Therefore, you can apply for a personal loan if you are a first-time user who wants to build a credit history.

In this article, we will understand the eligibility criteria and how to get a personal loan.

What is a Personal Loan?

A personal loan is an unsecured loan offered to fulfill sudden financial crunches such as medical emergencies, wedding plans, home renovation, moving expenses, etc. Banks and lending institutions check for your credit score to assess your credibility. A score of above 750 indicates a good credit history. As a result, you can get loans with low-interest rates.

Eligibility Criteria for Personal Loans

Sl.No. Particulars Description
1 Nationality Indian
2 Age 21 to 60
3 Employment Status Employed or Self-Employed
4 Minimum Income INR 20,000 per month
5 Work Experience Min 1 year completed
6 Credit Score Above 750

Documents required

  • For Salaried Employee
Sl. No. Particulars Documents required
1 Proof of Identity Aadhar Card, PAN Card, Driving Licence, Passport
2 Proof of Address Electricity Bill, Water Bill, Passport
3 Proof of Income Salaried: Bank statement for the past six months
4 Work experience Employment Certificate for one-year work experience

  1. For Self-Employed
Sl. No. Particulars Documents required
1 Proof of Identity Aadhar Card, PAN Card, Driving Licence, Passport
2 Proof of Address Aadhar Card, Electricity Bill, Water Bill, Passport
3 Proof of Income
  • Bank statement of past three months
  • Salary Slips of three months
  • ITRs for the last three years
  • P&L Statements and Balance Sheet for the past three years audited by a CA.

Things to know before applying for a Personal Loan

  • Check if you meet all the required eligibility criteria. 
  • Keep all your documents ready such as your Aadhar card. PAN Card, passport, income statements, etc. 
  • Check your credit score frequently and maintain a score of above 750 to get a competitive interest rate. You can quickly check and get your credit report instantly from Buddy Score.
  • You must have a stable income of at least INR 20,000 to qualify for personal loan eligibility.
  • Maintain your Debt-to-Income ratio less than or equal to 50%.
  • Compare the interest rates offered by various lenders and choose the lender who offers lower interest rates.
  • Plan and estimate your monthly EMI to plan your budget for the loan amount according to your income.


With more than 16 crore Indians being “credit-underserved,” lenders are ready to use this opportunity to offer instant personal loans at competitive rates. Therefore, you can get a loan to build a good credit history if you are a new borrower.


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