Getting an idea of how much loan you are eligible for is very important before applying for a loan. You may negatively impact your credit score if your loan is rejected. All financial institutions have different eligibility requirements. There are, however, several websites of banks and NBFCs that have a personal loan eligibility calculator that can determine the amount of personal loan you are eligible for. To determine your personal loan eligibility, the calculator will take into account the following factors to get a personal loan:

Age: 

It is common for loan providers to define the age bracket for acquiring a loan as 23 to 55 years old. The age limit might get extended to 65 years by some banks.

Occupation:

Your professional status self-employed or salaried employee determines how much you can borrow.

Monthly income: 

The minimum salary for low interest personal loans varies from city to city. The fee in a tier 2 city like Baroda is 25,000 rupees, while it is 35,000 rupees in a tier 1 city like Mumbai.

Monthly expenses: 

Your bills, rent, commuting costs, and fun and leisure expenses will be considered to determine how much EMI you can pay.

Why use a personal loan eligibility calculator at all?

As compared to banks, NBFCs have relatively fewer eligibility requirements. When your credit score is low, obtaining personal loans from a bank can be complex. It may also cost you more to borrow a lesser amount and pay a higher interest rate. With NBFCs, you can lower your EMIs by up to 45% by taking out schemes such as Flexi Personal Loan.

How an EMI calculator can help you

• Interest rate

A personal loan’s interest rate is an important consideration. As well as EMIs and loan terms, interest rates are affected by other factors. You can calculate the best EMI and loan term from the calculator until you find the most suitable one.

• EMIs

EMIs are the first factor to consider on the online personal loan calculator. It will be easier to determine the amount you will pay if you know the value and number of EMIs you will need to pay in advance. When deciding whether you need the loan, you must know whether you can afford it. You will also be able to manage your expenses during the loan term.

• Loan term

In addition to determining the best term for your loan, you can also use the EMI calculator. To lower your interest rate, you may decide to pay many EMIs, which will make your loan longer-term. EMI values and numbers can be altered to ensure you get the best loan tenor possible.

• Customizable

It is possible to customize all values in the calculator, so you can adjust them until you are satisfied with the results. This is how you can get a reasonable interest rate on a suitable loan.

• Comparison

Along with providing your information, the calculator can be used to compare various aspects of low-interest personal loans. You can use these calculators to determine your interest rates, EMIs, tenor, etc., based on the values you enter.

Read Also: 6 Simple Tips To Improve Your Personal Loan Eligibility