Just like solving a mathematical problem can be simple using a calculator or a mobile app on your smartphone. Checking your eligibility for a Personal Loan before applying has been made simple for leading financial institutions.
A Personal Loan can help individuals overcome financial shortfalls that require quick action. It provides the needed funds without pledging your assets.
In recent years, personal loan popularity has increased exponentially. The Personal Loan segment increased by Rs 73,000 crore within two quarters till September 2021.
Personal Loans are the most transparent and readily available loans for individuals in the financial market. To help potential borrowers check their personal loan eligibility, top financial institutions have provided the Personal Loan Eligibility Calculator on their websites.
So, if you are considering applying for a personal loan, you must know the criteria and check your eligibility before starting the process.
What is a Personal Loan Eligibility Calculator?
A Personal Eligibility Calculator is a ready-to-use tool that helps you check your eligibility. It tells you whether you are eligible to get a Personal Loan. Financial institutions design their customisable Personal Loan eligibility calculator keeping the borrowers’ convenience in mind.
The calculator helps you determine your loan eligibility based on your age, income, current employer, employment history, repayment capacity, and years of experience in your work profile.
Using the calculator, you can instantly know the loan amount available for you based on your eligibility to plan your expenses or purchases accordingly. It determines the loan amount based on the maximum loan EMI you can afford.
You can find a personal loan eligibility calculator on the lender’s official portal dedicated to customers. You can use it as many times as you want for free.
Easy Eligibility for Personal Loans
The loan applicants should know the eligibility criteria for a Personal Loan with most financial institutions and the factors that impact their eligibility for a loan. Easy to meet eligibility criteria includes the following common conditions:
- Credit Score: The loan applicant should have a credit score of 750+. Many lending institutions like Clix Capital ask for an Experian Credit Score of 630+ to sanction Personal Loan.
- Age: The exact age limit may differ from one lender to the other. Usually, your minimum age should be 22 years to be eligible to apply for it. It varies for salaried and self-employed persons. Salaried persons aged 25-58 can apply.
- Net Salary: Individuals who earn Rs.25,000 monthly are eligible for online Personal Loans.
- Work Experience: The lender may want the applicant to have a minimum work experience of one year with six months in their current organization.
How to Check Personal Loan Eligibility Using an Online Calculator
With a Personal Loan eligibility calculator, you need to enter a few necessary information to check your eligibility within a few minutes. Let us define the process to check eligibility using the tool.
Step 1: Go to the official website of the lending institution and access the loan eligibility calculator.
Step 2: Fill in the personal details required for the application – your name, mobile number, location, etc.
Step 3: Click the button ‘Check Eligibility’. You will receive OTP on your entered mobile. Verify it on the website.
Step 4: Enter the employment details – your profession or business, net income, current work experience, monthly EMIs you can afford to pay, etc.
Step 5: The calculator will show the loan available against your eligibility.
Following these steps, you can quickly determine your eligibility for a Personal Loan.
What Factors Affect Personal Loan Eligibility
You should enter the correct information for exact calculations. Here is how various factors impact the Personal Loan eligibility criteria of borrowers:
- Age: If the applicant is younger, the lender can offer you a higher loan amount than those near retirement age, as younger ones have a longer working life span.
- Income: The monthly income is directly proportionate to your eligibility. A higher salary can offer a higher loan amount.
- Location: A loan applicant from a metropolitan city can get a higher loan because of the increased expenses.
- Type of employment: The loan applications of salaried individuals can be approved quickly as they have a regular source of income.
Thus, check your eligibility using the online calculator and know how much loan amount you can get against your income. Then follow a 100% digital and contactless process to get the loan.