When you’re in need of plentiful cash on hand and at that very moment, you got to know about personal loans. Personal loans are a very convenient, user-friendly, and helpful financial product that provides instant money to any individual. However, during the search for a personal loan, you might get curious to know just your qualification status for this loan. In that case, a personal loan eligibility calculator can help.
What is an Eligibility Calculator?
The eligibility calculator for a personal loan is a free, handy and useful tool available on all lenders’ websites with 24/7 accessibility. By entering some essential details – this tool delivers accurate figures of your monthly EMIs and shows your eligibility status.
Things You can Find Out While Using the Personal Loan Calculator:
Irrespective of your employment (salaried or self-employed individual), a bank or NBFC offers an extensive amount of personal loan. However, certain factors in your profile can influence the entire loan structure, primary value, and process – your application can get rejected, too.
By using a personal loan calculator, you can figure out the following factors –
- Your eligibility
- Your monthly EMI values
- Potential tenure
- Percentage of your rate of interest (it certainly varies depending on the bank, your profile and the primary loan value)
Despite that, here’s the list of factors that you can’t find using this tool –
- The chance of your application being approved
- The variable interest rates that most people take for granted
Apart from this valuable field, some significant points also influence the process of personal loan apply online. And, loan eligibility is amongst those!
What is Eligibility For a Personal Loan?
Generally, eligibility or qualification is a parameter set by different banks and NBFCs to evaluate the liability and creditworthiness of an applicant for the lending. The lending companies usually take the eligibility standard one step ahead to meet their financial crisis and demands.
Since people use the personal loan to fulfill their various needs and private requirements, such as bearing wedding expenses, education and medical cost, getting a new vehicle, etc. Therefore, banks really expect the individual to fulfill all standard criteria and certain credit factors to get approval for the payment.
However, the eligibility benchmark has certain constraints to earning, CIBIL score of the applicant, relationship with the bank, income and employment history, Income stability, past loan history, etc. So, here we have explained these vital factors and how you can elevate your eligibility to avail of the personal loan.
Tips to Elevate Your Eligibility For the Personal Loan:
- Track your CIBIL score
Though you check your credibility through a personal loan eligibility calculator, you must keep tracking your CIBIL/ credit score to understand your profile status. Any borrower must have a healthy CIBIL score that may range between a minimum of 750 to 900; the more, the better! Maintaining a sound score report will create a good image of yours. And any bank or Non-Banking Financial Companies will agree to approve your application with a competitive rate of interest. Because a healthy CIBIL score will automatically increase your eligibility parameters.
- Expand the Loan Tenure
If you are a salaried individual having low earning status or you have current EMIs running – you have to expand your loan repayment tenure. Only then you can obtain the personal loan value that you chose. However, the prime reason behind this action is that it will reduce your EMI amount and increase the chance of your loan application getting approved with a more prolonged tenure period.
- Accurate Documentation
During the process of personal loan apply online, the lender will always check the essential documents thoroughly. It’s to verify the borrower’s authenticity. Though the list of documents may vary from banks to NBFCs, some basic documents are, including – salary slip, KYC, address proof, employment proof, bank statement, etc. If you have all these documents with you, you’re eligible for applying for personal loans.
- Clear Existing Detriments
If you already have debts, EMIs and other financial liabilities, clear those before applying for a new loan. If banks or NBFCs find out your profile have existing detriments, they will not offer you to have another. So, if you can clear out all pending debts and obligations, it will be effortless for you to be eligible for this loan.
- Maintain good rapport with banks/NBFCs
Having a healthy relationship with banking agents, managers, or lending officers can be beneficial for a borrower. Especially, if you’re an existing customer of that organisation, obtaining a personal loan would be more painless since they trust you and already have your vital documents with them.
You can improve your creditworthiness of getting a personal loan by remembering the list aforementioned. Also, by using the personal loan eligibility calculator, you can easily calculate your credibility, gratuity, and potential EMIs in a couple of seconds by filling up a few pieces of information. So, calculate your eligibility and start your loan journey today!