At some point in life, most of us face a situation where we are in real and urgent need of funds. The degree of need can vary from one individual to another depending upon the situation they are in. A personal Loan is one of the most popular loan options that individuals generally opt for. But there is something most people don’t know about — Eligibility and EMI Calculation. With the help of a Personal Loan Eligibility Calculator, individuals can have an estimate about the maximum loan amount they can get from a lender whereas a personal loan EMI Calculator can help estimate the EMI amount.
Any individual who is looking to go for a Personal Loan should first have an estimate about the maximum eligible loan amount as well as the EMI amount. The reason: Personal loan can be a big responsibility as you will be paying a certain amount every month towards the repayment of the loan. So, it is advised to use the Personal Loan Eligibility Calculator before going for a personal loan. In this article, we will tell you everything about the importance of the Eligibility Calculator and what are the details that you will need to use this tool. Keep reading!
What is Personal Loan Eligibility?
Before doing the calculation with the Personal Loan Eligibility Calculator, it is important to understand what personal loan eligibility is. Well, your eligibility will decide if you will get a loan from a lender or not. Personal Loan Eligibility Calculator decides how much loan amount you will get if you are eligible. Eligibility is one thing that varies from one lender to another and can be different for different individuals. For example, it may be possible that HDFC Bank has different eligibility conditions for a personal loan as compared to ICICI Bank Personal Loan. Now that you have sufficient information about Personal Loan Eligibility, let’s understand how a Calculator works.
Details Required to Use Personal Loan Eligibility Calculator
As we said earlier that the personal loan eligibility calculator helps individuals find the maximum eligible loan amount. But have you ever thought about how to calculate the loan amount? Well, it will need a few basic details. When you put them into it, the calculator will tell you the exact eligible loan amount. These details are your employment type, City, Date of Birth, Monthly Income or Net Yearly Profit after Taxes, Monthly Obligations (Loan or Credit Card EMI), and Tenure.
So, as soon as you put all these details into the Personal Loan Eligibility Calculator, you will get the results. Let’s understand with an example.
Suppose an individual who has been earning INR 41,000 per month wants to opt for a 5-year personal loan. He lives in Delhi and is 25-years old. Also, he has been paying a monthly EMI of INR 5,000 towards his credit card EMI.
Now, when we put all these details into the calculator, we will find out that he is eligible for a loan amount of around INR 6 lakh. One of the important things that you need to remember that this is just an estimation, and the final loan amount may vary from one lender to another.
Factors That Affect Your Personal Loan Eligibility
There are a few factors that affect your personal loan eligibility amount, and you should know them. One of the reasons behind this is the unsecured nature of a Personal Loan. First of all the most important factor that affects your personal loan eligibility is your Credit Score as it defines an individual’s repayment behavior. Some of the other factors that affect your Eligible Loan Amount are Monthly Income, Employment Type, Age of an individual, Existing Obligations, and Job History. Any lender would check these factors before giving you a loan amount.