How To Use The Personal Loan Eligibility Calculator
Our online personal loan eligibility calculator is a simple and helpful tool that gives you an instant estimate for your eligible personal loan amount.
- Select your location
- Enter your age. You have to be at least 21 years old when you apply for a loan, and a maximum of 65 years of age, at the time of loan maturity.
- Select your net monthly income . Please note that this amount should be after all tax deductions.
- Select your monthly EMI. This should be equal to the sum of all EMIs that you are currently paying, including those on your credit card.
You will be able to see the personal loan amount you are eligible for on the right side. You can change the interest rate and tenure as per your preference.
Please note that this calculator only gives you an indicative figure. Actual personal loan eligibility depends on many more factors, including employment details, credit history and more. To know the exact figure, you can Apply now and help us with some additional information as requested.
Credit Score And History
An applicants credit score is one of the most important factors a lender considers when evaluating a loan application. range from 300 to 850 and are based on factors like payment history, amount of outstanding debt and length of credit history. Many lenders require applicants to have a minimum score of around 600 to qualify, but some lenders will lend to applicants without any credit history at all.
Remember These Factors Of The Eligibility Criteria To Ensure That Your Loan Application Is Not Turned Down
Generally, the total EMIs you presently pay must not exceed 30 or 40% of the monthly income.
2. Improve and Maintain a Healthy Credit ScoreTypically, a credit score of 725 and above indicates you are a responsible borrower while 800-plus is excellent, indicating a person is a safe borrower. 3. Include all Sources of Income4. Avoid Applying Simultaneously for Multiple Loans
If you apply for multiple loans during the same period, it will raise red flags among lenders about your financial situation.
5. Choose a lender with Suitable Eligibility Criteria
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Eligibility Calculator: What Is It How To Use It
A personal loan eligibility calculator helps you get accurate results on whether or not you are eligible for a personal loan. All you need to do is enter your income, credit score, employment details such as work experience, and repayment capacity in the personal loan eligibility calculator. The calculator reviews your financial details and provides you with accurate results on your personal loan eligibility.
The personal loan eligibility calculator by Paytm is a very simple and efficient tool to find out your eligibility status. Heres how you can use Paytms personal loan eligibility calculator-
- Select your geographical location
- Enter your age
- Enter your monthly salary or annual income after making all the necessary tax deductions
- Next, you need to select your monthly EMI amount
Note that you can change the interest rate and loan tenure as per your preference. When you borrow a personal loan from any financial institution, you have an option to select the loan duration, depending upon which your interest rate would vary.
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Personal Loan Eligibility According To Different Monthly Incomes
|Net Monthly Income|
|INR 55,000||INR 20 Lakh|
Note: All these calculations are made based on the same interest rate and for Illustration Purposes. The final loan amount could vary based on the interest rate it charges on the loan amount.
So, from the above table, you can see clearly when an individual has a higher monthly income, lenders offer them a higher loan amount as compared to an individual who has a lower monthly income. Also, lenders tend to provide a higher EMI/NMI ratio to people with higher incomes as they can manage their expenses better as compared to a person who will have a little income left after paying the personal loan EMI.
Personal Loan Eligibility Criteria
Personal loan eligibility criteria vary for salaried individuals and self-employed individuals. The eligibility is computed based on a multiplier of net income earned. That is, the loan you get will be a multiple of the net income available after meeting other loan obligations.
The following are the broad parameters considered before calculating eligibility for personal loans.
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How To Apply Personal Loan For Nris
The NRI Personal Loan Application Process is hassle-free if you submit all the documents and meet eligibility parameters. Applying from another country can be a bit cumbersome if documents are not in place.
Today, most banks have opened up NRI helpdesks to make the process easy, and it is easier to contact these helpdesks in advance and understand all the details before starting the application process. You can either call or email the branch or the helpdesk/customer care of the bank or visit the branch in person to apply for a personal loan.
However, the presence of the applicant in the branch is not mandatory. NRIs who are existing bank customers and have a good banking relationship with the lender is better positioned to get the loan quickly than other applicants. They can send their relatives or family members to the branch if required.
In Order To Apply For A Personal Loan With Pepper Money Applicants Must:
- Be an Australian citizen or permanent resident
- Be 18 years or older
- Have no defaults or active payday loans
- Not be current or prior bankrupt or have a court judgement
- Centrelink can be used as a secondary income in conjunction with PAYG income
- Require to pay the loan off between 18 and 84 months
- Require a loan of between $5,000 and $50,000
- Single & Joint borrowers
- Be employed : Full time, part-time, self-employed or casual
- Have acceptable identification, either: Australian Passport OR An Australian Drivers Licence and Medicare card
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What Is The Eligibility Criteria For Personal Loan
A personal loan is an instant loan provided by the lenders for a short period of time. The process is simple and speedy compared to the traditional bank loans. Approaching a bank for a personal loan means lengthy paperwork and multiple visits to the bank. You can take a personal loan online to eliminate all the hassle. These loans are short term loans. As these are unsecured loans you dont have to showcase any asset ownership.
How To Avail A Personal Loan
If you need instant credit to meet an urgent need, you can submit a personal loan application with Muthoot Finance. You can apply online by providing your personal details and requirements or you can visit the nearest Muthoot Finance branch for your personal loan application. Based on your eligibility, the loan application will be verified by Muthoot Finance. After your application has been approved, the loan will be disbursed directly to your account.
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The Three Main Types Include Secured Unsecured And Signature Loans
While it can be tempting to get a personal loan for a car, home improvement, or even for an emergency fund, it’s important to make sure you’ll be able to repay the money you borrow. According to the Consumer Federation of America, nearly half of all personal loans have been refinanced or consolidated with another loan within five years. Among those who have gone through this process, 27% blamed their financial circumstances while 17% said they simply couldn’t afford the monthly payment. For more information about personal finance and money management, contact your Bay Federal Credit Union branch today.
Other Factors That Affect Personal Loan Eligibility
As we said monthly income is the most crucial factor which will determine your personal loan eligibility. But there are a few other factors also that determine your personal loan eligibility Applicants Age, , Working Experience and Residing City. Lenders always check the applicants age to determine the adequate number of working years remaining. The eligibility criteria related to age tends to vary from one lender to another.
Similarly, people with a high credit score do have the chance to get a higher loan amount as compared to people with low scores. A good credit score indicates a responsible repayment behavior and a lender doesnt want to offer a loan to an individual who has a bad repayment behavior. Lenders also check the overall work experience of an individual to have an estimate of his or her financial stability. More working years indicate better financial stability and vice versa.
Lenders also have different minimum income criteria according to different cities. For example, the minimum monthly income criteria for an individual living in a Metro City will be higher than a non-metro city. So, it would be advisable to check the monthly income condition of the respective lender when checking your personal loan eligibility.
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Common Types Of Personal Loans Available
Short-term loans: Short-term loans are personal loans that usually have a repayment period of anywhere between 14 to 60 days. This is sometimes referred to as a personal cash advance due to the short-term nature of these loans. In other words, if you’re approved for a short-term loan, it’s usually unlikely that the lender will give you a loan that lasts more than an entire year.
Short-term loans are personal loans that usually have a repayment period of anywhere between 14 to 60 days. This is sometimes referred to as a personal cash advance due to the short-term nature of these loans. In other words, if you’re approved for a short-term loan, it’s usually unlikely that the lender will give you a loan that lasts more than an entire year. Installment Loans: Just as it sounds, installment loans are personal loans with fixed payment schedules or installments rather than interest rates. These loans usually last for a year to as long as five years, in which you’re required to pay back the loan according to a schedule. This type of loan is often given by banks and credit unions.
Can You Afford A Personal Loan
This is no small question. Just because you know how to qualify for a personal loan on paper doesnt mean your budget can realistically absorb the new monthly payment, especially if youre in the process of saving for other financial goals. LendingTrees short-term loan calculator is an easy way to ballpark what your monthly payment will actually be, not counting any additional loan costs.
Things to look for when considering a personal loan include prepayment penalties, application fees and origination fees, said Kelley.
Every lender has its own set of criteria, but many personal loans do tack on an origination fee in the neighborhood of 1% to 6%. And if youd eventually like to accelerate your payments and pay it off sooner rather than later, it would serve you well to go with a lender that wont charge a prepayment penalty.
When all is said and done, personal loans are an excellent source of short-term financing if you can easily take on the monthly payment. But as Morganelli hinted above, this has everything to do with addressing your financial behavior so that the new loan doesnt inadvertently end up strengthening the debt cycle.
Is this something youre doing to kind of slap on some tape and seal the leak, financially speaking? she asked, warning that using a personal loan to cover overspending only delays the inevitable. At some point, the bill will come due.
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What Is The Role Of My Credit Score In The Loan Process
Your credit score or CIBIL score plays a crucial role in determining your loan eligibility. Financial institutions check your credit score before approving your loan application. This is because your credit score determines your financial status and repayment capacity. If you have a high credit score, lenders may consider you a low-risk borrower and approve the loan amount quickly. On the other hand, a low credit score can hamper your loan approval chances. Since credit score plays a pivotal role in the loan approval process, ensure that you work towards improving it before applying for a loan. You can improve your gradually by clearing your outstanding dues, making timely repayment of existing loans, and minimizing your credit utilization ratio.
Do I Need To Provide Any Security Or Collateral To Obtain A Personal Loan
No, you do not have to provide any security or collateral to obtain a personal loan. Personal loan is a type of unsecured loan. This essentially means that it is not backed by the guarantee of collateral. You are not burdened by the need to generate collateral like gold, property or shares, as with other types of loans. As there is no security to assure loan repayment, the bank will focus on the income and financial stability of the applicant.
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How To Check Personal Loan Eligibility Online
We have listed the individual steps to checking your eligibility online below so you know exactly what to expect. Remember, it will not affect your credit score so it is a safe and easy way to narrow down your results and find the best personal loan for you from the panel of lenders on offer.
- Find an eligibility checker there are plenty out there, including our very own MoneyMatcher
- Make a decision choose your loan amount, loan term and loan type to help narrow down your search for a personal loan. Find out more here about making a decision
- Fill in your personal details make sure your personal details are as accurate as possible any errors might give you a result that doesnt reflect your personal circumstances
- Agree to T& Cs and Get results indicate you are happy to accept the terms and conditions and click Get Results
- Results page – you will receive a list of results alongside approval scores that will indicate how likely you are to be accepted for that particular personal loan
Ready to start your personal loan comparison journey? Head over to MoneyMatcher and enter your personal details to get your results. You can also save your results in MyAccount so you can view them later on.
Employer And Income Verification
A lender wants to see that you have the ability to pay back your current debts as well as the new loan. To do this, lenders typically require prospective borrowers to demonstrate their employment history and current earnings as part of the application process. Common forms of income verification for traditional employment include:
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Understand The Factors That Affect Personal Loan Eligibility
All lenders have a set of criteria for applicants to meet and your application is assessed based on several factors. Heres a breakdown of these factors to highlight their importance during loan application.
Age: Applicants age indicates their ability to repay the loan and manage the debt comfortably based on the number of working years ahead of them. If the applicant is below the minimum age cut-off, they may not have enough experience with loans or have the income to support EMIs. Similarly, if the applicant is beyond the maximum age limit, they may be close to retirement and may not have enough working years left to pay the EMIs.
Work Experience: Lenders assess an applicants work experience to check job and income stability. Applicants who are new to their posting or have recently switched to a new company may not be as stable as someone with experience and stable employment. Applicants with more experience are more preferred because they have maintained employment and may be presumed to continue doing so for the foreseeable future.
Monthly income: Your income is assessed for two major reasons. First, to know whether or not you can handle the EMIs for the loan amount you seek. Secondly, to determine your disposable income considering all your other existing obligations. For instance, applicants with a debt-to-income ratio greater than 50% are less likely to get approved because they are already servicing a great deal of debt.
What Is The Personal Loan Eligibility Of Individuals With Different Monthly Incomes
Now, you have sufficient information about the EMI/NMI ratio, we would be talking about how different monthly incomes affect the Personal Loan Eligibility. Lenders check the monthly income to be sure of the repayment capacity of an individual. Also, lenders have a fixed criterion about the monthly income.
To understand the effect of Monthly Incomes on personal loan eligibility, we are taking examples of different monthly incomes of INR 25,000, INR 40,000, INR 50,000, INR 70,000, and INR 1 lakh. According to these incomes, we will see what is the maximum loan amount an individual can get. We will be taking the scenario where the individual has no existing obligation.
So, first, we would be taking the monthly income of INR 25,000 which is considered to be a low-income category among lenders. So, an individual who is earning INR 25,000 per month wants to opt for a 5-year personal loan at an interest rate of 15% per annum. What would be the maximum personal loan amount?
Well, with this monthly income, the maximum EMI/NMI ratio can be 30%. So, the maximum EMI that he can afford after spending on other monthly expenses will be INR 7,500.
And with this EMI amount of INR 7,500, the maximum personal loan amount he can get is a shade above INR 3.15 lakh. Remember, the individual has no existing monthly obligations. On having any, the loan amount will reduce accordingly.
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