How Personal Loan Eligibility Calculator Can Simplify For Hassle-Free Borrowing?
Find out how a personal loan eligibility calculator can make borrowing easier by helping you determine your eligibility for a hassle-free personal loan.
There are so often situations that we are faced with when we need immediate cash as a lump sum amount to meet an emergency expenditure, but do not have sufficient funds at our disposal. At other times, even when there is no emergency, you may require the cash to fund a necessary expenditure. At such times the personal loan product comes in extremely handy. The personal loan is a loan given by banks and NBFCs to Indian citizens who have a regular source of income. This loan is a “No-Conditions-Attached Loan”. This means that you can use the loan for any purpose as you deem fit. People therefore use the personal loans for a variety of purposes – home renovations, down payments while buying a home, rental deposits, taking a holiday, children’s education, medical emergencies, buying equipment for their home or office and several other reasons.
But there are so many lenders offering personal loans today that it can become confusing for the borrower. Each lender’s terms and conditions, eligibility criteria and loan limits differ from the next. For e.g. one lender may offer personal loan interest rates ranging from 12% to 35% while another lender may offer interest rates of 10% to 40%. Similarly, the loan amounts offered vary. Some offer loans in the range -of INR 50,000/- to INR 5,00,000/-. Another lender may offer loan amounts up to INR 50,00,000/-.
Exciting and enticing though these figures may be, this does not necessarily mean that you will be eligible to avail the highest loan amount offered. The loan amount you can avail depends on certain markers or criteria. These include your current income and expenditure levels, your debt burden or your debt-to-income ratio, your age, your place of work and your credit score. It is here that the personal loan eligibility calculator comes in extremely handy. By using this calculator you can get a reasonably accurate estimate of the personal loan that you can avail. Having a ready estimate simplifies one of the major hassles of borrowing – having a loan application rejected because you asked for a loan amount far larger than your eligibility would permit. What is pertinent to note at this juncture is that each loan application results in an enquiry against your credit report from the lender you approached. Each hard enquiry affects your credit score negatively. So does each rejected application.
There are several personal loan eligibility calculators available online. These are relatively easy to use with a simple user interface. All you need to do is browse online using the search terms “personal loan eligibility calculator”. You will be shown a number of options. You can select any one of them or even experiment with two of them using the following steps:
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- Enter your monthly income in the column stipulated
- Enter your monthly expenditure in the next column as stipulated. Do not forget to include any EMIs you may be paying on other loans
- Enter the loan tenure that you plan: Not all loan eligibility calculators will ask you this. You can experiment with the tenure by first putting one year, then two years and so on and so forth to understand how the tenure affects the loan amount you are eligible for.
- Enter your employer’s name in the relevant column if asked. In case your employer’s name does not show up in the drop-down list, or if you are self-employed, choose the option “Other”
- Enter the date of birth as asked.
- Enter your location
If you notice, your loan amount will vary as per the figures entered in each column. For e.g. if you enter an income of INR 1 Lakh and expenditure of INR 40,000/-, the calculator shows a loan eligibility of INR 10 Lakhs, However, if you change the income to INR 60,000/- while keeping all other variables unchanged, the loan amount changes to INR 235,327/- .
But while the personal loan eligibility calculator, does help you calculate the loan you are eligible to avail, you may be wondering how much will be the personal loan EMI that you will have to pay. Having an idea beforehand will help you undertake the necessary financial planning more holistically. After all, you would not want to be in a situation where you take a loan of INR 10 lakhs and have an EMI of INR 70,000/- or more!
Thus it would be ideal to calculate the personal loan EMI by using a personal loan EMI calculator. You can find one on the IIFL website. Like the Loan Eligibility calculator, the EMI calculator is user-friendly and easy to use. By using both together you can
- Quickly assess your loan amount eligibility
- Calculate the loan term that you should opt for based on the EMI you can set aside each month
- Shortlist the lenders as per your need of a loan and your repayment ability
- Apply for a realistic loan amount ensuring that the loan is easily approved.
To conclude - while many of us are tempted to apply for a personal loan in a hurry, it is good to research the offerings of various lenders, get a realistic estimate of the loan amount that you can avail and the EMI and loan tenures using the readily available online tools. Doing so will increase the chances of loan approval significantly. It will also help ensure that you pay your personal loan EMIs without defaulting. If you are in need of a personal loan, do not hesitate to get in touch with IIFL Finance. We offer loans of up to INR 500,000/- with easy repayment conditions. Documentation is simple and you can apply and get the loan sanctioned online.
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