There could be numerous situations in which you could need financial support. It could be for financing a wedding, paying off a couple of bills, planning a vacation, or even renovating your home. If you do not wish to use personal savings for these expenses, one quick solution is to apply for an instant personal loan. A personal loan provides the required funds for your personal expenses and can be repaid in monthly instalments over 5 years. In addition, since this is an unsecured type of loan, borrowers are not required to provide any kind of collateral to their lenders.
Now, before taking this loan, it is very important to first calculate your eligibility for a personal loan. Financial institutions set certain personal loan eligibility criteria based on which they decide whether to approve or reject a loan application. To be sure of the loan amount you qualify for, it is advisable to make use of a personal loan eligibility calculator.
How does a personal loan eligibility calculator work?
A personal loan eligibility calculator helps the user to find out the loan amount that they are eligible to receive based on their profile. You can find this online tool on most financial institutions’ websites. All you have to do is fill up details in fields that require information related to the monthly income you earn and your current debt obligations. Once the personal loan eligibility calculator has these details, it will display the loan amount that you can get.
Why is it so important to use this calculator?
There have been borrowers who have faced difficulties in getting their loan applications approved by lenders. This mostly happens because they are unaware of the lender’s eligibility criteria for personal loans. Getting multiple loan applications rejected is not a good sign, as this would count as a negative mark for future lenders. This is why it is important to make use of a personal loan eligibility calculator before applying for a loan. This way, you will be aware of the loan amount you can receive beforehand. Based on this, you can decide whether to apply for the loan or not.
To improve your personal loan eligibility, keep the following tips in mind:
- Try and clear any existing EMIs
If most of your income is already being spent on clearing existing EMIs, taking another loan will bring down your repayment capacity. This is something that lenders would not prefer, so try to be debt-free while applying for a personal loan.
- Keep a steady employment record
Being under steady employment indicates that you have a regular monthly income to pay off the personal loan with ease. So, avoid making frequent job changes.
So, these are a few things that need to be kept in mind when it comes to personal loan eligibility. Also, before you apply for personal loan, make sure to have a decent credit score, as this will improve the chances of getting a loan approval.