You need to consider various aspects before applying for a Personal Loan. One of them is your eligibility. Assessing your Loan qualification beforehand saves you from inconvenience. It helps you dodge rejection. But ascertaining this factor requires some calculations.
This is when a Personal Loan eligibility calculator comes in handy. It is a free tool available online on Loan providers' websites. It enables you to enter all attributes and computes the exact Loan amount you can get in your situation. This way, it helps you plan accordingly. The following are the details to add:
Step 1: Type of Employment
The eligibility for an Instant Loan differs for salaried and self-employed individuals. This is primarily because income, occupation, and financial responsibility vary for both. Hence, the first step includes specifying your employment type. With the assistance of the calculator, you check your employer's or business reputation to determine your eligibility.
Step 2: Age
Lenders usually offer Personal Loans only to applicants aged between 21 to 60 years. It enables the lender to calculate the years left for you to repay the Loan. They usually prefer younger applicants as they have more time to repay the Loan with a longer tenure. However, older applicants with good credit scores and income also get considered for Pension Loans. So, you must specify your age in the following field.
Step 3: Net monthly Income
The minimum monthly earning required for a Personal Loan is Rs. 25000 for the salaried. For self-employed individuals, it is Rs. 5 lakhs of turnover. However, you can avail of the Loan with a slightly lower income if you have a good credit score. Enter the value in the next tab or move the Personal Loan eligibility calculator slider to check this.
Step 4: Existing EMIs
Entering your total Equated Monthly Instalment amount defines your existing debt. This debt-to-income ratio highlights your divided financial responsibility to the lender. You may not be an ideal fit if you have many credits at the time of application. Thus, it is best to clear them before applying for a Loan.
Step 5: Additional Details
Only some calculators ask for additional information. It entirely depends on your lender. If you get asked for the same, you must enter your address details, city, desired Loan amount, etc. Double-check all these details and the documents required for the Loan. The outcome of the calculator will show the Loan amount based on your eligibility.
It is wise to ensure your eligibility before applying for any Loan. Tools like the Personal Loan Eligibility Calculator make this task easier. They save you from the inconvenience of manual calculations and errors.