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Personal Loan Eligibility Calculator
Personal Loan Eligibility Criteria
Criteria
Salaried
Self-Employed
Note: Lenders may have specific requirements in terms of eligibility.
Top Banks and NBFCs and their Personal Loan Eligibility Criteria
Lenders
Eligible Loan Amount
Minimum Eligible Income
Eligible Age
Note: The figures mentioned in the table above are subject to change at the bank’s/NBFC’s discretion.
Factors that Impact Your Personal Loan Eligibility
How is your Home Loan Eligibility Calculated?
Personal Loan eligibility is calculated by two methods:
What is Personal Loan Eligibility Calculator?
A personal loan eligibility calculator is a free online tool that gives you an idea of the loan amount you are most likely to be eligible for based on the loan tenure and interest rate you choose. It also gives you a picture of your tentative repayment schedule so you can start planning your monthly expenses right away. The first thing to do when you decide to get a personal loan is to check your loan eligibility. At times, borrowers may wish to access a high personal loan amount but their credit history may not be strong enough to enable that. Your personal loan eligibility is calculated by the lender based on factors such as your current EMIs, years of work experience, type of organization, your monthly income. All of these factors and more are taken into account before the lender deems you eligible for the applied loan amount. The bank or NBFC makes sure to calculate your eligibility such that you can easily tackle the EMI for the loan every month.
Many banks, NBFCs and online loan marketplaces like Fincity offer you access to an online loan eligibility calculator to help you clearly understand your eligibility for a personal loan. You need to enter basic information such as your loan amount, occupation, monthly income and the preferred loan tenure. However, do note that the eligibility calculator gives you an approximate idea; the concerned lender may require you to fulfil other additional criteria to be eligible for a certain loan amount.
Personal Loan Eligibility Criteria for Salaried Individuals
Salaried individuals including salaried professionals such as lawyers, chartered accountants, doctors are eligible to apply for a personal loan. The eligibility criteria may differ depending on the lender you apply with. Below are some general criteria applicable to salaried professionals for personal loans with most banks.
Note: The figures mentioned in the table above are subject to change at the concerned bank’s/NBFC’s discretion
Personal Loan Eligibility Criteria for Self-Employed Individuals
Self-employed professionals such as doctors and architects, and business owners can also avail of a personal loan with most banks and NBFCs given that they meet the eligibility criteria set by the concerned lender. Below is a general list of criteria applicable to self-employed individuals for personal loans.
Note: The figures mentioned in the table above are subject to change at the concerned bank’s/NBFC’s discretion
Documents Required by Lenders to Check Eligibility for Personal Loan
Documents required for a personal loan may differ based on the lender you opt for. Below is a list of general documents a bank or NBFC requires you to submit along with your personal loan application.
For salaried applicants:
For self-employed applicants:
How can you check personal loan eligibility?
Before you apply for a personal loan, it is important to determine the amount you will likely be eligible for. You can do that by using the Fincity eligibility calculator. Here are the steps you need to follow.
Ways to Increase your Personal Loan Eligibility
Your personal loan eligibility depends on a number of factors. Here are some ways that can improve your chances of personal loan approval.
How does your income determine your eligibility?
To be eligible for a personal loan, your net monthly income must be at least Rs.20,000. The bank or NBFC also calculates the ratio of your fixed obligations to your income per month. They additionally look into other aspects like your credit history and credit score. Let’s say you your income is Rs.35,000. The lender calculates your eligibility keeping in mind that your fixed obligations including the EMI for your new personal loan does not exceed 50% of your monthly income. However, if your income is above Rs.40,000, you are allowed a fixed obligation to income ratio of 65%. This means that the sum of all your fixed expenses such as rent, credit card and loan EMIs, etc., can be up to 65% of your total monthly income. Keep in mind that a higher income allows you to get a higher loan amount and enjoy a lower interest rate. If you wish to calculate your personal loan eligibility, you can do so using the Fincity Eligibility Calculator in a few taps.
How to Improve Your Credit Score for Personal Loan Eligibility?
Credit score is essentially a three-digit number assigned by credit bureaus based on your credit behaviour and creditworthiness. Th e score ranges anywhere between 300 and 700; 700 and above is generally considered a good score and helps you easily avail credit by means of a loan or credit card. A score between 300 and 549 is considered poor while one between 550 and 700 is considered fair.
It is key to understand the factors that influence your score since credit score is important in determining your personal loan eligibility. If your score is poor, you can take easy measures to improve it over time. Let’s take a look at a few ways to improve your credit score.
Be Disciplined with Your Finances
Paying your dues in a timely fashion is essential to raise your credit score and to do away with the burden of paying penalty. If you pay off your outstanding debts, your score sees a major improvement. So, in case you tend to forget repayment dates for credit card bills or loan EMIs, make it a point to set up reminders. This way you can tackle the problem and work towards lifting your score. Remember, a good credit score will give you access to more credit when you need it.
Maintain Old Credit Cards to Lengthen Your Credit History
If you already have a number of credit cards, you may want to get rid of the old ones. However, we advise you against it; holding on to a credit card you have used for a long time translates to a long credit history. And if you have been careful to make regular payments on time, your credit history will be strong. This definitely increases your creditworthiness and credit score.
Limit Your Credit Utilization
Your credit utilization influences your credit score. It is recommended that you use a maximum of 30% of the total credit available to you. You can set a customized monthly credit limit depending on the amount of credit you generally require in a month. Note that overutilization of credit also implies that you are credit hungry and are not good at managing your finances. In such a scenario, a lender will be hesitant in giving you the credit you applied for.
Choose a Long Loan Tenure
Opting for a shorter loan tenure surely reduces your interest payout over the tenure and saves you on overall loan cost. However, missing or delaying payments due to high EMI will have a bad impact on your credit score. Therefore, be careful to choose a tenure that allows you to tackle your EMIs easily. But if you want to reduce your EMI pressure, you can choose to go for a tenure that is longer. This will also allow you to make other investments.
Maintain a Healthy Mix of Credit Types
Make sure to maintain a good balance of secured and unsecured credit borrowed over both short and long tenures. This helps build your credit score. If you have not ever borrowed credit, you will not have a credit history and your credit score will be low. So, make sure to build a healthy mix of credit so you have a credit score that lends you access to a high loan amount at a low interest when you require it.
I hereby declare that I have read the consent. and I appoint and allow FINCITY to access my credit information from Credit Information Companies in order to understand my creditworthiness and thereinafter provide personalized values that would help them generate the Credit Information Report, Credit Score, and Credit Analysis. I/We hereby authorize FINCITY & its affiliates including banking partners to call or SMS and/or WhatsApp with reference to my application or in relation to any of FINCITY products, notwithstanding anything to the contrary that may be contained anywhere, including any registration for DNC/ NDNC.
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