When you are going to borrow a personal loan from a bank or financial institution, you should know how much you are eligible to borrow. Because if you apply for a loan without any knowledge of the personal loan eligibility, your loan request may get rejected. To solve this issue for the customers, there are some banks and financial institutions which provide a useful tool to the customers a Personal Loan Eligibility Calculator. Read this post to know more about the tool.
What Benefits Does Personal Loan Eligibility Calculator Provide?
- You can know the maximum loan you can borrow from the bank or NBFC
- You can get a lower interest rate without any hassle if you apply under your loan limit
- Easily approved by the bank or NBFC
- You can get an EMI which is affordable and fit in your budget
What are the Common Personal Loan Eligibility Criteria?
Before providing a personal loan to the borrower the lender will check some of the criteria to find whether you qualify for a personal loan or not. Check the pointers to the personal loan eligibility criteria.
Credit score: This is a 3 digit number that represents how you pay off your credit cards and loans in the past. The credit score is calculated by credit bureaus and it ranges from 300 to 900. A credit score of 750 and above can make you eligible for a personal loan in India.
Employer Reputation: Banks offer personal loans to both salaried and self-employed professionals. If you are a salaried professional and work in a renowned organisation or company the lenders will prefer you suitable for a personal loan because of your job stability and employer reputation.
Age: Bank and NBFC offer personal loans to adults only and minors can’t borrow a personal loan. That is why there is an age limit for the personal loan applicants which is 21 to 60 years. If you fit in this crieta only then you can apply for a personal loan.
Minimum income: You can borrow a personal loan if you meet the minimum income eligibility criteria. And the reason most of the customers choose a personal loan is that they can borrow it with a minimum income of INR 10,000 as well depending on your lender. So, do check the minimum income required when you are applying for personal loans.
Work/Business experience: It is necessary to have an experience in the field you have been working on where it is business or you are salaried employee. A minimum working experience of 2 years is required for salaried individuals. Whereas self-employed can borrow a personal loan if they have 3-5 years of experience in the business with a profitable amount.
How to Use Personal Loan Eligibility Calculator?
The Personal Loan Eligibility Calculator generates the loan amount using your income and repayment capacity. These are the factors that will determine your personal loan eligibility such as income, employer, credit history, other financial liabilities, age, etc.
To use this calculator, you need to enter the following:-
- Date of Birth
- Monthly Income
- Other EMI if any
- Employer Name if salaried
Suppose your age is 26 years old and you want to borrow a personal loan. You use the Personal Loan Eligibility Calculator and enter your monthly income which is INR 25,000 and other details like current EMI which is INR 5,000. So, as per the calculator you are eligible for a loan of INR 3,75,000.