Personal Loans are a great financial
tool to help you pay for higher education for your children, vacations abroad,
consolidating debt, medical bills, and so on. What’s more, they are easily
available with just a few clicks.
Most of the NBFCs offers Personal
Loan on an online application and account management feature, that makes the
application process much easier. It also comes with a flexible tenor ranging
from 12 to 60 months, and instant approval with the cash being disbursed within
24 hours of loan approval.
Factors Affecting Personal Loan Eligibility:-
However, before you apply for this or
any other Personal Loan, you need to check your eligibility using an Personal Loan eligibility calculator. Doing so
will tell you how likely it is that your application will be rejected/accepted.
It gives the lender an idea of your loan repayment capability. The following
are the usual criteria that lenders look at to determine your Personal Loan
eligibility:
1. Age:-
Ideally, you have to be between 25
and 58 years to be eligible for a Personal Loan. This range varies from
lender-to-lender though. Your age tells the lender how long you have until
retirement, which in turn indicates whether you will be able to repay the loan
with ease.
2. Steady Income:-
Your current salary plays an
important role in your Personal Loan eligibility. It indicates your ability to
repay the loan. Ideally your EMIs should not take up more than 30-40% of your
monthly salary. The higher you climb the career ladder, the higher your salary,
and therefore, the better your eligibility.
3. Financial Background and
Stability:-
Apart from your recent salary slips,
your overall employment history, career breaks, past credit behavior, and
repayment history, all matter in your Personal Loan eligibility. If you have
unpaid bills, or have been unemployed for long periods, you may not be
considered eligible for a Personal Loan online. Moreover, the
eligibility criteria vary depending on whether you are a salaried or
self-employed person.
4. Debt to Income Ratio:-
No matter how high your salary is, if
your debt-to-income ratio is higher than 30-40%, it will negatively affect your
Personal Loan eligibility. It will also adversely affect your credit score and
your ability to avail any type of loan.
5. Credit Score and History:-
Since Personal Loans are unsecured
loans and don’t require any collateral, your eligibility depends on your credit
history and score. If you have a good credit history you will have a high
credit score, and in turn better eligibility for a Personal Loan. However, if
you have a poor credit score, it can be increased by paying your bills on time,
before you apply for a Personal Loan.
How to Calculate Personal Loan Eligibility:-
You can use a eligibility calculator
to see if you qualify for a Personal Loan. Enter a few details like your date
of birth, employer’s name, net salary, etc., and get the loan amount you are
eligible for from the respective lender.
Once you know your eligibility, you
can easily apply for a Personal Loan online. NBFCs also brings you pre-approved
offers that make it easier to address your financing needs.
It is vital to fulfill all the
parameters of availing the loan from your preferred lender as multiple
rejections can affect your credit score, leading to further difficulties in
getting a loan sanctioned.
Eligibility Calculation Before you Apply for Personal Loan
Reviewed by Pravesh Kumar Maurya
on
23:23
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