How to calculate your Personal Loan eligibility in minutes?

Personal Loan eligibility refers to assessing an applicant’s qualification to borrow a Personal Loan. It affects not only the Loan approval but also the amount that can be borrowed. The Loan eligibility calculator is a handy tool designed to help you estimate how much you can borrow based on your eligibility. Personal Loan eligibility is determined by key factors such as income, existing financial obligations, credit score, etc.

Generally, a Personal Loan eligibility calculator considers your age, net monthly income, and net monthly obligations to give you an idea of the maximum Loan amount you can borrow. This information can help you understand your borrowing capacity and make informed decisions that align with your financial needs and goals.

Personal Loan eligibility criteria

The Personal Loan eligibility criteria for salaried employees states that their age should be not less than 22 years and not more than 65 years. They should be Indian citizens with a credit score of 750 and above. They should have at least one year of work experience and be employed for at least six months at the current organisation. The minimum income for Delhi/Mumbai residents is Rs. 25,000, whereas for other cities, it is Rs. 20,000. The EMI fraction of income should be a maximum of 60% to 70% of the monthly income.

For self-employed candidates, they should be between 25 and 65. They should be Indians with a credit score of 750 and above and a business existence of at least three years. Their minimum annual turnover and profit after taxes depend on the nature of their profession or work domain. They can get a maximum of 65% of EMI as a fraction of their income.

How do you use the Personal Loan eligibility calculator?

You can calculate the eligibility online with the help of a Personal Loan eligibility calculator. It is a simple and helpful tool that gives you an instant estimate of the Personal Loan amount you are eligible to borrow. Here are the steps to use it:

1. Select whether you are applying as a salaried or self-employed individual.
2. Enter your age.
3. Enter your net monthly income. It is the take-home pay after subtracting taxes and other deductions from the gross monthly income. If you are self-employed, please select your yearly profit after taxes. These details directly influence your Personal Loan eligibility and repayment ability.
4. Consider your net monthly obligations towards existing debts, such as Home or Car Loans, Credit Cards, and any other financial commitments.
5. Choose the annual interest rate, starting at 13% per annum, and the period you plan to repay the Loan, which can range from 12 to 60 months.

The PL eligibility calculator displays the amount you are eligible for on the right side of the screen. You can adjust the interest rate and tenure per your preference to understand different scenarios. Once you are satisfied, you can proceed with the Loan application.