What Is A Personal Loan Eligibility Calculator?
A personal loan does not require the borrower to provide collateral and so it is an unsecured loan. A personal loan is intended to fund immediate financial need, may be for business capital, marriage, education or even foreign trips, though the end use of the capital really depends on the borrower, as long as it is for a legitimate financial purpose. You can use a personal loan eligibility calculator to check how much personal loan you are eligible for, given your current financial situation.
What is a personal loan eligibility calculator?
The personal loan eligibility calculator is designed to give you an estimate of the personal loan amount you can get. All you need to do is key in or select your city, age, monthly income and monthly expenses and voila! You will get an estimate of your personal loan amount.
The purpose of the personal loan eligibility calculator is to help you pick the best personal loans available to you and plan your finances accordingly.
How is personal loan eligibility calculated?
Lenders provide personal loan eligibility calculators online on their websites. The calculator gives you an approximated sum of personal loan you can get based on your inputs of monthly income and expenses.
How to use the personal loan eligibility calculator?
These parameters may vary from lender to lender. But all that is to be done is open the home loan eligibility calculator page and key in or select the following
- Current location
- Age or date of birth
- Select your net monthly income
- Monthly expenses
- For some banks, this also doubles up as a personal loan EMI calculator, in which case, you can select the preferable loan tenure and the rate of interest (which is fixed by the bank) to arrive at the interest payable and the EMI.
Am I eligible for a personal loan?
Since these loans are unsecured- at what rate of interest you will get the loan and how much, whether or not you will get the loan-depend on the credit quality of the borrower. If you have good creditworthiness, you are likely to get the loan at an attractive rate of interest. If you have been a long time customer with the bank, with sound track record of financial discipline, you may also get a pre-approved personal loan sanction.
Bank of Baroda lists the following types of employees/self-employed individuals who are eligible for personal loans.
- Employees of Central / State Govt. / Autonomous Bodies/ Public / Joint Sector Undertakings, Public Limited Co. / MNCs & Educational Institutions – with minimum continuous service for 1 year
- Employees of Proprietorship, Partnership firms, Private Limited companies, Trust - with minimum continuous service for 1 year
- Insurance Agents- doing business for minimum last -2- years
- Self Employed Professionals (Doctor, Engineer, Architect, Interior Designers, Tech. and Management Consultants, Practicing Company secretaries etc) -- with minimum 1 year stable business.
- Self Employed Business persons - with minimum 1 year stable business.
What are the benefits of a personal loan?
Personal loans have plenty of benefits over credit cards like flexible repayment, flexibility of use, and easy to get.
- Urgent financial requirement
If there is an immediate need for money, personal loans are the best option. They are considered better than credit cards or loans from family members or unorganized lenders, since the rate of interest is reasonable and the lender is a credible organization. Credit cards come with strict credit limits, which is not the case with personal loans. Funds taken from the bank as personal loan also resolve the issue of certain vendors not accepting payment through credit cards.
- Breathing time for repayment
Also, the credit card bills need to be paid off by the due date whereas you get some breather in repaying a personal loan EMI over a period of time.
Funds from a personal loan are flexible in the way you use them. They can be used for several purposes- home renovation, higher education, travel, wedding and medical expenses with a personal loan.
The loan amount you can borrow under a personal loan is also significant. For example, with Bank of Baroda, in metro and urban areas, personal loan amounts can be up to Rs.10 lakh, while in semi-urban and rural areas, the maximum personal loan amount is Rs.5 lakh.
- Flexible repayment structure
These loans are generally of the nature of short to medium term loans and come with a flexible repayment structure.
For example, Bank of Baroda is popular for personal loans that are quick to get, fast processing, minimal documentation required and offered at attractive rate of interests. Most salaried persons, self-employed and professionals can apply for these personal loans.
What is the maximum amount of financing that I can get as a personal loan?
The limit varies from bank to bank and even within a bank it is stipulated based on the classification of the financing branch. But the maximum amount in metros and urban areas is Rs. 10 Lakh and Rs.5 lakh in rural areas, for Bank of Baroda.