What is the typical personal loan approval rate?

The approval rate for personal loans is not fixed. It can change depending on many factors related to both the applicant and the lender’s internal policies. Lenders assess each application individually, focusing on the borrower’s credit score, income stability, existing debt obligations and overall repayment capacity. Applicants with a strong credit score, usually above 750 are more likely to receive approval and may also benefit from lower interest rates along with higher loan amounts. A stable and sufficient monthly income further increases your chances, as it demonstrates your ability to manage regular repayments.

Lenders also evaluate the debt-to-income ratio which measures the proportion of your income already committed to repaying existing debts. A lower debt-to-income ratio signals that you are less financially stretched and more capable of handling an additional loan. Those with high existing debts or irregular income may find it more difficult to get approval or may be offered less favourable terms.

Other factors influencing approval include your employment status, length of service with your current employer and the nature of your occupation. Self-employed individuals may face stricter documentation requirements, while salaried applicants with steady employment are often viewed more favourably.

While there is no publicly available approval percentage, maintaining a good credit profile, steady income, and a manageable level of debt will significantly increase your likelihood of personal loan approval. Before applying it is very important to check your credit report, use eligibility calculators and make sure that all your documentation is in order. This preparation can help you gauge your chances and avoid unnecessary rejections, which could impact your credit score.