When applying for a Personal Loan, it is important to consider different factors, including your eligibility. Doing so helps you avoid any inconvenience or rejection. However, evaluating your loan eligibility beforehand can be a complicated process. This is mainly because it involves various calculations.
However, a Personal Loan eligibility calculator enables you to simplify this task. This free tool is available on loan providers' websites. It allows you to input your details to determine the exact Loan amount that you qualify for. By using it, you can plan accordingly and make informed decisions about your Loan application. The following are the details to provide in the tool:
- Type of employment
The eligibility for a Personal 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's reputation to determine your eligibility.
- Your 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, specify your age in the field given in the Personal Loan calculator.
- Net monthly income
The minimum monthly earning required for a Personal Loan is Rs. 25000 for salaried individuals. However, for self-employed individuals, it is Rs. 5 lakhs of turnover. But you can avail of the loan with a slightly lower income if you have a good credit score. To check this, enter the value in the next tab or by moving the Personal Loan eligibility calculator slider.
- 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.
- 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 shows 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 makes it easier. They save you from the inconvenience of manual calculations and errors.