A Detailed Guide on How to Calculate Personal Loan Eligibility

Personal Loan Eligibility - Buddy Loan

Personal Loan Eligibility - Buddy Loan

Are you looking for a home extension? Want to travel the world with your loved ones? Need to meet an emergency? Require money to start a business? Or looking forward to paying off your existing debts? No matter what the reason is, an instant Personal Loan is a feasible solution that can fulfil the immediate cash crunch that too with ease and ultimate convenience. In recent times, personal loans are the most convenient financing tool, the quick approval and disbursal make it unique from other options. Also, loans can be used for any purpose without any explanation. But before you apply for a loan, it’s essential to figure out what a personal loan is? How to avail it quickly? How to calculate personal loan eligibility? And many more. If you are a responsible borrower, then read on to have a detailed knowledge of each factor.

What is a Personal Loan?

A personal loan is an unsecured loan that can be used to meet a variety of needs which means there is no need to provide collateral or security. You can avail of a loan from any bank or non-banking financial institution. At Buddy Loan, you can obtain a loan up to Rs. 15 Lakh for tenures ranging from 6 months to 5 years starting at an interest rate of 11.99% p.a.

Are you someone who is looking for a personal loan? Then you must start knowing the money you can borrow and interest to make the overall loan journey experience hassle-free and seamless. For this, you can use a personal loan eligibility calculator that soothes your borrowing procedure.

A personal loan eligibility calculator is a tool that helps you determine whether you are eligible for a personal loan or not. Depending on your monthly income, current EMIs, employment type, working experience, and creditworthiness – It calculates the maximum loan amount you are eligible for, interest rate, and repayment tenure.

Personal Loan Eligibility Check

There are 3 basic eligibility requirements that you need to meet to avail a personal loan –

  • You need to be an Indian citizen.
  • Your age must fall in the range of 21-65 years. Even few lenders offer loans at the age of 23 years.
  • You must have a total work experience of 1 year while some lenders expect more work experience.
  • Personal loan typesBuddy Loan provides loans to salaried individuals, businessmen, and professionals. For salaried people, the net monthly income has to be over Rs 18,000. And if you are a professional or business person, then you need to provide proof of income and bank statements.
  • Your credit score should be more than 750 to avail of a loan. Not having a good CIBIL score can reject your loan application. In this case, you can add a co-applicant to increase the chances of loan approval.

When you meet all these personal loan eligibility requirements, you can apply for a loan online and submit the required documents for verification and approval. The basic documents include –

  • PAN Card/Voter Id/Aadhar Card for identity proof
  • Address Proof
  • Last 3 months salary slip
  • Last 6 months bank statement

Once you submit the online application along with the documents, it will go for verification. After the approval process, the amount will go straight to your account within 48 working hours.

How To Improve Personal Loan Eligibility Parameters?

  • Credit Score

Your credit score plays a vital role in approving your loan application. A healthy score ensures a quick approval while a poor score can lead your application towards rejection. The score is generated based on your previous loan journey, transaction details, and other credit factors. It is a 3 digit number and a score above 750 assures speedy approval. This score enables the lender to decide the loan amount and interest rate. So, make sure you maintain this score throughout the year by paying your bills on time. Remember, a good credit score determines your creditworthiness. Also, don’t forget to check your credit report before applying. A single error can reject your application. If you find any information that is wrong as per knowledge, then fix it quickly.
Also Read: 7 Myths About Credit Score Report That Need To Be Cleared

  • Make Sure You Have a Proper source of Income

Before applying for a personal loan, make sure you have a steady job and an income to avail the loan with ease. Higher the income, the greater the borrowing capacity. Having a good income lets you negotiate the interest rate and repayment tenure. This is an important factor to consider, so be careful with your job and work experience.

  • Do Not Go For Multiple Loans/Lenders

You should apply for only one personal loan at a time. When you apply to too many lenders and apply, each inquiry is mentioned in the credit report and it affects your credit score negatively. Also, this will express your financial instability and lenders may reject your loan application. Before you approach a lender, do your research and compare loan offers, interest, tenure, etc. You must select a lender who will cater to all your financial requirements in a convenient way.

  • Keep All Your Documents Ready

Make sure all your documents are ready and in place. Before final submission, cross-check your application form, credit score, and make sure all the criteria are matching with lenders’ requirements. You can add a co-applicant to enhance the approval chance.

A personal loan gives you financial freedom and keeps away all the stresses. Just follow the above tips and work on improving your personal loan eligibility factors to increase the chances of loan approval. The eligibility may vary depending on the personal loan types, so check with the lenders once before proceeding!