All You Need to Know About Personal Loan Eligibility Calculator

NBFCs have a simplistic application procedure that you have to follow when applying for a personal loan. Complying with this process can help you receive approval of your loan application within 5 minutes. You can then have the loan amount in your account within a day.

However, non-compliance can lead to rejection of the application. It can also lower your CIBIL score considerably.

One of the reasons lenders often reject applications is a too high loan amount that the borrower applies for. Using personal loan eligibility can help you avoid the same.

What is a Loan Eligibility Calculator?

A loan eligibility calculator tells you the loan amount you are eligible for based on various factors.

You have to provide only the following information to check:

  • Location
  • Date of birth
  • Monthly income
  • Monthly expenses

Your monthly expenses have a significant impact on the loan amount you are entitled to. Higher amount of existing financial obligations lower your eligibility. Usually, it is advisable not to have fixed monthly debt that exceeds 50% of your income.

Foreclosing your existing loan and clearing your credit card dues lowers your debt ratio and increases your eligibility. You can check the same using a personal loan eligibility calculator.

Other Factors To Consider Before Applying

In addition to the loan amount, you have to consider the following points to ensure the lender approves your application:

  • Credit Score

You need to have a CIBIL score of 750 or more to apply for a personal loan. A high credit score is mandatory as these loans are unsecured. It is the only way a lender can understand your creditworthiness before sanctioning your loan.

  • Documents

Financial institutions need you to provide KYC documents (Voter ID, Driving Licence, Passport, PAN, Aadhaar, etc.) and bank account statements of the previous 3 months when you apply.

Along with the above, salaried customers have to provide their salary slips of the last 3 months and employee ID card. Self-employed customers have to produce their previous year’s turnover audited by a CA and income tax returns of the last year.

Make sure to keep all the required documents handy and use the personal loan eligibility calculator before you apply.

Must Read: All You Need to Know About Personal Loan Eligibility Calculator

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How Can a Salaried Person Avail Personal Loan without Income Proof?

Personal loan for a salaried person can be availed from a bank or lender if you already have an existing relationship with them or if you approach them directly stating your need.  Any individual who has a long-term relationship with the financial institution can comfortably apply for a personal loan and get it approved quickly without income proof. On the other hand, if your association with the bank or NBFC is new, you will have to submit documents as required, one of which will be income proof. 

What Does It Mean?

It means that the lender will look at the history and relationship between you and them to judge if it is okay to extend a loan to you. Discuss the age and other eligibility criteria with your NBFC to know if you fit the bill. 

Must Read: 6 Easy Tricks To Help You Enjoy Quick Personal Loan Approvals

Quick Benefits of Availing Personal Loan Without Income Proof

Personal Loans Approved Through This Method Are,

  • Quickly Disbursed – Paperwork is limited, and you can expect quick approval of application and disbursement of money. 
  • Better Loan Amounts And Tenor – You can choose to increase the tenor of your loan and considering the relationship with the financial institution, you can avail increased loan amounts.
  • Keep Track of Repayment – Online access to your loan makes it easier to know the EMIs paid and pending. Use EMI calculator to see the tenor and EMI, before committing. 
  • Better Interest Rates – Being an existing customer will help you get the lowest possible interest rate on your personal loan for salaried persons. 

Must Read: Can a Salaried Person Avail Personal Loan Without Income Proof?

Here’s How You Can Ensure You Are Eligible For a Personal Loan

For meeting fund requirement at an immediate instant, a personal loan is a useful venture. Being a loan of convenience you can use it fund any of your financial necessities. Hence in case of emergencies, the personal loan becomes a reliable aid.

There are some who tends to acquire such loan for expanding their own business setups while there are those who come upon certain medical emergencies. Whether or not it is your personal requirement you won’t have to worry about pledging collateral or security. Also, you can check the due amount to return by using a loan calculator.

Read More: BEST WAY TO GET A PERSONAL LOAN INSTANTLY

The Case of Criteria

As much as financial aid has become a convenience, it does have its own sets of criteria to fulfil. The personal loan eligibility criteria of an individual is measured by the criteria established by the lender. While the criteria help to gauge the repayment ability, the lender tends to rely on certain requirements. It certainly includes the age, credit score, income and few other parameters upon the meeting which one can get a loan to fulfil their necessities.

How to Boost Up Eligibility?

Here are some short tips to follow that will help someone to qualify easily for a personal loan.

  • First of all, one should have the financial means to fulfil their terms of repayment. The only way to do that is to earn an adequate income.

  • It is best to meet up all the existing loan dues before taking up a new one.

  • A good credit score is important for increasing the chances of qualifying for a loan.

One easily able to determine the sum that had to be repaid by inputting in the loan calculator. It helps to make a financial plan beforehand and while enabling to implement a strategy for repayment.

Must Read: How to Boost Your Personal Loan Eligibility

Get Medical Emergency Loan to Handle Critical Situations

Ask any average person, and you can easily find that they are intimidated by a medical expense that might occur out of the blue. The medical emergency loan is provided by banks and private lenders o help people who need to face a critical situation. You can now get rid of your anxiety because these roles are disbursed quickly with minimal documentation and save you during a time of need.

Know Your Eligibility 

Similar to every other loan, emergency medical loans do have certain eligibility criteria that you have to meet. 

Your CIBIL score is an important factor and. Lower scores may lead to an increased interest rate, but you can repay your loan.

Other documents required by a lender will include salary pay slip, the age criteria of the borrower, which should be between 25 and 55, but all these might change based on the lender. A reputed financial company can provide it quickly with minimal documentation compared to others who may need more paperwork to release the loan.

Why a Medical Emergency Loan?

  •   When you need instant funding to handle a medical emergency, go for it. 
  •   It has a wide coverage area and covers all types of health problems as well as accidents 
  •   Easy to pay EMIs that make it easier to complete the loan 
  •   Lesser documentation as it is an emergency loan 
  •   The lender will not require any collateral except for an income proof to showcase your capability 

You can consider exploring right now on loans provided by different lenders, compare interest rates and avail your medical emergency loan quickly.

Must Read: QUICK PERSONAL LOAN FOR MEDICAL EMERGENCY

 

Factors That Can Affect Interest Rates of Your Personal Loan

Depending on the banking institution and the norms that it follows – the process of acquiring loans varies. The eligibility criteria, interest rates, and the ideal amount for the loan amount are diverse. There is a list of long-series of factors that might affect the process. 

Let’s Recognize Which Are Those:

  • Your Income 

Depending on the kind of job you are committed can influence the loan amount that you’re getting from banks. Although it might sound a bit weird, the fact remains true that– if your income is high then, lenders will offer you loans on low–personal loan interest rates. Let’s consider that the amount you earn is Rs.60, 000 then the interest rate on the personal loan is somewhat around 16-20%.

  • Previous credit history

One of the main deciding factors that affect personal loan interest rates is your credit history. Banks– check your relationship with the banking institution– on-the-basis of the nature of banking service that you might have opted, utilized previously– such as past loans and how well you managed in repaying the amount to the bank.

  • The name & fame of the company you are currently working

Another crucial factor that can help you in achieve personal loan at low interest is the reputation of the company that you are currently working. A reputed-firm that has a sound name in the market will help you get that personal loan at low interest. 

Even if you aren’t an employer of a particular company, try your level best to maintain a stable, healthy relationship with the firm.