Applying for a Personal Loan involves multiple eligibility factors like income, credit score, and existing financial obligations. An eligibility calculator is a useful tool that estimates whether you qualify for a Loan based on these criteria.
The Personal Loan eligibility calculator evaluates basic financial details to estimate your eligibility, such as:
- Employment type (salaried or self-employed) – Select whether you are applying as a salaried or self-employed individual. Choose the appropriate option as the age and minimum income requirements differ for both categories, impacting your eligibility and the amount that can be borrowed.
- Age of the borrower – You must be at least 22 years old when you apply for a loan (25 if you are self-employed) and a maximum of 65 years old at the time of Loan maturity. It ensures compliance with Loan policies and repayment capacity over time.
- Net monthly income – It is the take-home pay after taxes and other deductions are subtracted from your gross monthly income. If you are self-employed, please select your yearly profit after taxes. These details directly influence your Personal Loan eligibility and repayment ability.
- Net monthly obligations – It refers to the total monthly payments you make towards existing debts such as Home and Car Loans, Credit Cards, and any other financial commitments. This amount should be accurate as it can significantly affect your Personal Loan eligibility and amount.
- Interest rate and tenure – Choose the annual interest rate, starting at 13% per annum, and the period you plan to repay the Loan, which can range from 12 to 60 months. The final interest rate depends on the lender’s policy at the time of Loan application and other factors.
After entering these details, the calculator provides an estimated Loan amount and eligibility status, helping you understand whether you meet the lender’s criteria. You can adjust the interest rate and tenure per your preference to understand different scenarios. Once satisfied with the Personal Loan eligibility check, you can proceed with the Loan application.
Can an eligibility calculator guarantee Loan approval?
The Personal Loan eligibility calculator merely offers an approximate estimate of the amount of Loan you can apply for. The result is intended for your information only. The actual Loan eligibility will depend on many other factors, including bank account information, employment history, etc., and the lender’s policy when considering the Loan application.
You can improve your chances of Personal Loan approval by maintaining a high credit score and history, applying with a lender whose required criteria fit your profile, using the Personal Loan eligibility calculator to compute the maximum amount you can get and applying for an amount within this limit, paying off existing debts, adding a close family member with a stable income and excellent credit score as a co-applicant, and so on.
Conclusion
Lending platforms offer a free-of-cost, easy-to-use Personal Loan eligibility checker that simplifies this process. You can find a Loan option aligning with your financial goals and obligations by trying out different interest rates and tenures.
