How You Can Check Your Personal Loan Eligibility

How You Can Check Your Personal Loan Eligibility

Personal loans can get you through the worries of life, whether it’s medical bills, debt consolidation or top up loans. They can also be a boon during times weddings, travel, buying a car and so on. But when you’re looking to take out a loan, that’s when you should check your Personal Loan eligibility. That can save you a lot of time and effort that would otherwise be wasted.

Your credit history and credit score play a huge role in determining how much Personal Loan you’re eligible for. Have a poor credit score below 700 and most lenders won’t approve your loan application.

How Much Personal Loan Amount is Eligible for My Salary?

You can use an online Personal Loan eligibility calculator for free to check how much loan you’re eligible for. You can also calculate eligibility for Personal Loan by checking your collateral and estimating how much it’s worth. A higher valued collateral can get you a higher amount of personal loan. Banks feel confident disbursing the money as long since the collateral wouldn’t be something you’d want to lose if you default. You can also get lower interest rates in these cases.

Keep Your Credit Score Up

If you have a great credit score but no collateral, you can apply for an unsecured personal loan online with no co-signers. The downside is that your interest rate will be slightly higher. But these are very safe.

Your employment history, track record, income stability, and earning amount per month are also taken into consideration when calculating how much loan you’re eligible for.

The third area which is taken into consideration is the type of personal loan you’re applying for. It can be to buy a home, travel, education, college, buying a car, and more. The amount you get also depends on why you’re applying for a Personal Loan.

Documentation Needs To Be Perfect

Your documentation needs to be in place. The company you work for will be taken into consideration. If you work for a reputed and recognized company, and have good credit scores with letters of recommendation signed by your HR, you can get a higher amount of personal loan.

Your eligibility is based on your repayment capacity and whether you can afford the EMIs. Your age is also another factor that will be taken into consideration, since they want to make sure that you have a solid income when you’re applying for a loan.

Your credit history says a lot about your financial standing. Ensure that you do everything you can to keep it up, since that can usually make or break the deal.

The maximum amount of an unsecured Personal Loan you can get from banks and NBFCs is usually Rs.25 lakhs. You can also look into getting a co-borrower and see if you can qualify for the loan.

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