Be it for a family holiday or to finance a wedding, to buy a car or to do home repairs, pay for medical treatment or for your child’s education, a Personal Loan can come in handy for varied short-term financial needs. Since it is collateral-free, you don’t need to worry about pledging your assets as security, and with convenient repayment tenors up to 5 years, applying for a Personal Loan today is easier than ever. While you look for a lender who offers you the most competitive interest, don’t forget to look into your eligibility for a Personal Loan.
How Personal Loan Eligibility Impacts you
When you approach a financial institution for a loan, you must present them with proof of your financial circumstances. This would include your income, age, existing debts, and credit history, among a number of other details. Financial institutions must feel confident about your ability to repay the loan, and they evaluate the aforementioned factors to arrive at a conclusion.
Since there is no collateral, your lender will decide how much money you are eligible to borrow based solely on your credit score, income, bank statements, etc., and may also adjust the rate of interest and loan tenor accordingly.
For example, if you are a young, salaried professional earning a net salary of Rs.40,000, you could avail of a loan of up to Rs.4 lakh. You can calculate this for yourself by making use of a Personal Loan eligibility calculator. Most lenders offer this tool on their website, and you can use it to check your eligibility for a Personal Loan and how much you can borrow.
How to use a Personal Loan eligibility calculator
Bajaj Finserv not only offers affordable Personal Loans, but it also allows you to check your eligibility in a matter of seconds.
Simply enter your details in the eligibility calculator to do so.
- Fill in your date of birth, city of residence, employer’s details and net salary. You also have to state how much you are spending on other EMIs currently, and the value of your outstanding credit card balance, if any.
- Next, you will need to specify whether or not you have a home loan.
- Then, click on ‘Check your eligibility’. The online calculator will then inform you what amount of money you are eligible to borrow as a loan.
If you are comfortable with the amount, you can use the EMI calculator to check the loan’s affordability, and proceed with applying for it. When you apply to Bajaj Finserv, you can borrow up to Rs.25 lakh at a low interest rate and with a flexible tenor. Besides, you can enjoy instant approval, money in the bank in 24 hours and pre-approved offers too.
Factors that Impact Loan Eligibility
Your loan eligibility depends on a few major factors. First is your monthly income, which informs the financial institution how much money you have to pay back on the Personal Loan, and how soon you will be able to pay it off. Your monthly expenses will also be taken into consideration to determine this.
Other factors that will inform the financial institution about your ability to repay the Personal Loan are your age and the city in which you reside. Younger professionals are seen as more likely to have their income grow steadily. Therefore, they are considered to be more able when it comes to repaying a high-value loan. Professionals living in cities with a higher cost of living will have higher monthly expenses. This will also impact your eligibility.
Other factors that affect your eligibility are your debt-to-income ratio, which ideally shouldn’t exceed more than 40% of your earnings. Also, if your credit history includes instances of delayed payments, missed EMIs and rejected loan applications, bear in mind that it will negatively impact your eligibility.
So, online Personal Loan eligibility calculator provide an estimate of your eligibility, and if you’re on the fence about applying for a Personal Loan, or are unsure about the process, they’re a great place to begin your borrowing journey.
By Lucia Adams
who is a professional writer and blogger.