When you are borrowing a personal loan it is essential to check the eligibility criteria. Because with the help of your loan eligibility, you can find the amount you borrow and can be saved from loan rejection. And to make it a lot simpler for you there are some banks and NBFCs that provide a personal loan eligibility calculator. Read this post to know this tool functions and benefits.
How to use a personal loan eligibility calculator?
You can use the calculator if you know your monthly income and approximate expenses. The following are the steps you need to follow:
- Visit the lender official website
- Select ‘Personal Loan’ from its product category
- Look for the ‘Personal Loan Eligibility Calculator’
- Click the ‘Personal Loan Eligibility Calculator’ button
- On the Personal Loan Eligibility Calculator page, you need to enter a few details like residence city name, date of birth, monthly income in INR, and monthly expense.
If you have inserted all the details in the correct columns, your eligible personal loan amount will be displayed on your computer screen.
For instance: Daya lives in Delhi, she is a 30 years old working woman, and earns a monthly salary of INR 25,000. She spends up to 30% of her income on kids’ schooling and 10% on groceries, etc. So according to this date, she is successful in saving INR 15,000 per month. Now let’s see according to the Personal Loan Eligibility Calculator how much she can borrow. As per the calculator, Daya can borrow up to INR 2,50,000 personal loan.
Factors Affecting Your Loan Eligibility
Your loan eligibility will be based on the following criteria:
- Age: The borrower’s age is a primary factor in personal loan eligibility because if the borrower is near to his/her retirement or below the age of 18 years, he/she won’t be able to pay the borrowed amount.
- Income: It is necessary to have a regular income, as it shows that the borrower won’t make a repayment default.
- Credit history: Your previous loan repayments helps the lender find out your credibility for a new loan.
- And monthly expense: The borrower expense helps the lender understand your reliability for the loan amount.
Advantages of a Personal Loan Eligibility Calculator!
The following are the list of benefits which you will get if you use the calculator:
No Rejection: In many cases, an individual loan request is rejected because they applied for a wrong loan amount out of their limit. It is a common mistake and anyone can commit it. So you should be careful of that and use a Personal Loan Eligibility Calculator so the same mistakes can be made.
Instant Approval: When you apply for a loan under your loan limit, the lender approved the request quickly and disburses the loan amount. And how will you get this benefit? only from the Personal Loan Eligibility Calculator
Negotiable Interest Rate: A major advantage of using the calculator is that you can negotiate with the lender to reduce the interest rate based on your credit history. If you have an existing relationship with the lender, negotiation won’t be required.
Find Your Eligibility: And the most important thing is you can know what you are eligible to borrow and compare the lender offers to choose which is best for your financial situation.
Note – In this article, we have taken an example of the Bajaj Finserv personal loan eligibility calculator.