Check If You Are Eligible For Personal Loans
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Offered by banks and non-banking financial companies, Personal Loans allows you to buy various products and goods. You get to claim the entire loan cost and repay them in flexible equated monthly instalments over the stipulated tenure. However, before applying for the loan, make sure you are eligible for it.
There is a Personal Loan eligibility calculator that helps you find the accurate loan cost you deserve to get. These are found on the banking apps as well. The parameters to add are:
Most lenders mention the minimum and maximum age limit for deciding the Personal Loan eligibility. If you wish to apply for a loan, you should be between 18 years and 65 years, which is the maximum age.
Once you fit the age gap, then consider the employment aspect. This gets categorised as the type, and income earned. Here, it is divided into Personal Loan for self-employed and salaried individuals. Also, every lender has different salary specific eligibility as well.
Apply in your city
The other thing to check is the resident city. While it is easy to apply for a loan from the bank, not all NBCFs have their services in every city. So, even if you have found the NBFC with all the essential features, you cannot apply for it if the service is unavailable in your city. Also, most lenders need you to reside from the city where you live for at least a year.
Check the credit score
You must furnish your credit report while applying for any loan, including the Personal Loan. Your eligibility for Personal Loan depends on the credit score, and the range must be between 750-900. If you do not have the necessary ratings, you can still get the loan for higher interest rates.
Go for the maximum amount
The final thing to check is the maximum amount you qualify for. Use the calculator for checking, keeping in mind what the lender is offering based on your income and affordability. The calculator helps understand whether you qualify for the loan.
Checking for eligibility before applying for the loan is imperative. If you are found ineligible, your application gets rejected, and the credit ratings get affected. So, make sure that you run the eligibility check before applying for the loan. The best part is lenders also have the EMI calculator in place for you to compute the accurate equated monthly instalments you need to pay towards the loan until the term ends.