A personal loan is one of the most prevalent forms of credit you can utilise to meet your financial needs. This type of loan can be used to fund expenses such as travel, debt repayment, unforeseen medical charges, tuition fees, and so on. Financial institutions provide two types of personal loans: secured and unsecured personal loans. You can get unsecured credit without putting up any collateral. On the other hand, a secured loan requires you to provide collateral.
Selecting the right lender while applying for a personal loan will get you the most benefits and make the loan less risky. You can compare the offers from several lenders to determine which one best suits your needs. An online personal loan eligibility calculator found on several websites is a useful tool that you can use to know your eligibility for personal loans.
Advantages of using an online personal loan eligibility calculator
Saves time and effort
The personal loan eligibility calculator will aid you in knowing whether you are qualified to obtain a personal loan or not within just a few minutes.
Free of cost
You are not required to pay any fee to use this eligibility calculator as the financial institutions provide such a calculator on their websites free of cost.
Helps in avoiding rejection
As you will be informed about your eligibility, the chances of getting your application rejected will be low.
Precise loan amount
With the help of a personal loan eligibility calculator, you will easily know the amount of loan you are eligible for. Manual calculations may sometimes provide you with wrong results. However, using an online personal loan eligibility calculator will eliminate this risk, and the amount will be accurate.
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Easy to use
This calculator is easy and simple to use. You may find the eligibility calculator on any financial institution’s websites. All you are required to do is provide details about the loan amount, rate of interest, and repayment tenure. Following that, the result will be displayed on the screen.
Plan comprehensively
An online personal loan eligibility calculator will give you an estimate of your monthly payments or EMIs. An EMI calculator not only saves your time by presenting you with several EMI alternatives based on the required duration, it also provides you with a comprehensive table of payment schedules up to maturity, enabling you to determine the precise amount you are required to pay. It also helps in planning your expenditures wisely. If you need a personal loan but are not eligible, here are a few points that will help you in enhancing your loan eligibility.
Tips to enhance your loan eligibility
Keep a good credit score
A credit score is a three-digit figure ranging from 300 to 900. It represents your creditworthiness. Lenders use it to determine if you are eligible for the loan. They prefer a credit score of 750 or above (may vary across lenders). Maintaining a good credit score will make it easier for you to obtain a personal loan at a competitive interest rate.
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Determine your EMI paying capacity
Personal loans are more likely to be approved if your total monthly debt payments, including the EMI for the new loan, do not exceed 60% of your gross earnings. If you surpass this limit, your chances of obtaining a loan are reduced. As a result, before choosing the loan duration and installments, you should examine your ability to pay your EMIs.
Avoid sending out multiple inquiries to several lenders
When you apply for a loan, the lender will review your credit record to determine your creditworthiness. Credit agencies see such lender-initiated credit report inquiries as hard inquiries, lowering your credit score by a few points each time. Thus, applying for many loan applications in a short period will significantly drop your credit score, reducing your eligibility for personal loans.
Concluding comments
Taking out a loan is one of the most important financial decisions, as multiple risks are associated with it. Therefore, you should conduct extensive research before selecting a lender. Before applying for a personal loan, you should consider various factors like interest rates and the company’s standing in the marketplace. These elements will make it feasible for you to obtain a loan from the most suitable lender at the lowest interest rate.
FAQs on Free personal loan eligibility calculator
Do I need to pay any charges for using the personal loan eligibility calculator?‘
No. You are not required to pay any fee as this calculator is available free of cost. You can use them on the websites of many financial institutions.
How can I determine my EMIs for a personal loan?
Several lenders provide online EMI calculators on their websites. Using that tool, you can quickly calculate the precise monthly payment amount for a personal loan.
What are the requirements for obtaining a personal loan?
To qualify for a personal loan, you must be salaried or self-employed. In addition to that, your credit score must be 750 or above (may vary across lenders). You may also use the personal loan eligibility calculator available on any financial institution’s website to assess your eligibility.
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