diff --git a/src/checkLoanEligibility.c b/src/checkLoanEligibility.c
new file mode 100644
index 0000000..e3ba64c
--- /dev/null
+++ b/src/checkLoanEligibility.c
@@ -0,0 +1,30 @@
+#include "checkLoanEligibility.h"
+#include "_file_information.h"
+
+bool checkLoanEligibility(int user_id) {
+
+    // Eligible only when user is present in CustomerDataFile 
+
+    bool keep_reading = true;
+    bool eligibility  = false;
+    char buffer[MAX_LENGTH];
+
+    FILE *file = fopen(CUSTOMER_DATA_FILE, "r");
+
+    while(keep_reading) {
+        fgets(buffer, MAX_LENGTH, file);
+
+        if (feof(file)) {
+            keep_reading = false;
+        }
+        if(user_id == atoi(buffer)) {
+            eligibility  = true;
+            keep_reading = false;
+        }
+
+    }
+
+    fclose(file);
+    return eligibility;
+
+}
\ No newline at end of file
diff --git a/src/checkLoanEligibility.h b/src/checkLoanEligibility.h
new file mode 100644
index 0000000..4415c60
--- /dev/null
+++ b/src/checkLoanEligibility.h
@@ -0,0 +1,10 @@
+#ifndef CHECKLOANELIGIBILITY_H_
+#define CHECKLOANELIGIBILITY_H_
+
+#include <stdio.h>
+#include <stdbool.h>
+#include <stdlib.h>
+
+bool checkLoanEligibility(int user_id);
+
+#endif
\ No newline at end of file