Loan eligibility calculator by Loanbaba provides an accurate calculation of the loan amount you can get from financial institutions. Before you apply for a loan, it is always best to check the loan eligibility criteria specified by banks and NBFCs. If you fit these criteria, you have a better chance of getting your loan approved. However, to have a realistic understanding about your loan amount eligibility, you need more than just going through the eligibility criteria by the financial institutions, as most of these only specify the minimum income or business turnover required, and the minimum or maximum loan amount you can avail.
But, who will tell you the actual loan amount you can borrow? Here, steps in the free-of-cost financial tool by Loanbaba â€“ the loan eligibility calculator. It takes into consideration your income and financial liabilities, even the loan tenure you are looking for with the rate of interest applicable, to inform you about the exact loan amount you can expect. Thus, to have the best understanding about your loan amount eligibility, use this tool. It is easy to use and gives accurate results.
You can simply visit loanbaba.com or Download the app apply online.
How does Loanbabas Loan Eligibility Calculator work?
The eligibility calculator by Loanbaba informs you about the eligible loan amount, total interest to be paid till tenure's end, and the EMI amount. Following is the way the calculator works on the website:
- In 'New Monthly' field, enter the net monthly income you draw.
- On the 'interest rate' section, adjust the slider on a desired rate of interest.
- In the section 'Other EMIs', enter the ongoing EMI amount.
- In the loan tenure section, adjust the slider to a desired tenure value.
- The loan calculator will then calculate the loan amount eligibility based on the above-mentioned details you enter.
NOTE: You can similarly use the free-of-cost loan EMI calculator on the website to understand the most affordable EMI options.
Why Should You Use the Eligibility Calculator by Loanbaba?
The loan eligibility calculator on website displays the quantum of finance you can avail from banks/NBFCs. It offers the following benefits:
- The loan calculator tool is dynamic and comes at no charge. You can use it free-of-cost.
- You do not have to manually calculate the loan amount you are eligible for as the calculator does the task and save you precious time and effort.
- The calculator also details out the total interest payment you have to make through the loan tenure.
- You can enter different values in fields of interest rate, current EMIs, monthly income, and tenure, to find out different results for loan amount eligibility.
- To give you a realistic calculation of loan amount eligibility, the calculator takes into account the ongoing EMIs.
- This way, the financial tool helps you to chalk out a realistic budget for a month, according to which you will understand the actual affordable EMI on a particular loan amount.
Frequently Asked Questions about Loan Eligibility Calculator
Below-mentioned are FAQs about Loanbaba loan eligibility calculator.
Depending on the type of loan you apply for, the CIBIL score requirement will differ. Usually to avail an unsecured loan, the credit score needs to be higher as against that for a secured loan.
- Personal loan CIBIL score requirement is 750+.
- Business loan CIBIL score requirement is 700+.
- Small cash loan CIBIL score requirement is 600+ to 650+.
- Gold loan CIBIL score requirement is 600+.
- Home loan CIBIL score requirement is 650+ to 700+.
- Loan against property CIBIL score requirement is 650+ to 700+.
To apply for loans in India, you need to draw a minimum income as specified by the bank/NBFC.
- For a gold loan there is no income criterion. Housewives and unemployed people can apply for this loan equally as any person with a steady source of income.
- For a personal loan, you need at least Rs. 25,000 as monthly salary.
- For a small cash loan, you need to draw a minimum of Rs. 20,000 to Rs. 25,000 as monthly salary.
- For a business loan, you need to meet the criteria of annual turnover as specified by banks/NBFCs. Usually financial institutions look forward to at least Rs. 50 lakhs per annum.
- For a home loan and a loan against property, the income limit is not specified. Basically, the loan amount you are eligible for will depend on the amount of income you draw.
The eligibility criterion for a loan depends on the following factors:
- Current market value of the asset to be pledged to avail a loan. For instance, if you apply for a gold loan, then the gold weight and purity will be checked. Similarly, if you apply for a housing loan or a property loan, the current market value of the property will be considered.
- Your personal CIBIL score or company credit score/vintage. Credit history to check if there is any overdue. Fewer financial liabilities will increase your loan eligibility, and vice-versa.
- Net monthly income/annual business turnover.
- Your age and employment information/status.
Other than standard rate of interest, you may be eligible for discounted rates in the following conditions:
- Availing loan under special schemes meant to uplift the economically backward.
- Availing loan for agricultural purposes.
- Loans for women to launch a start-up business.
- Sharing a good relationship with a bank/NBFC.
- Having a very high CIBIL score.
- Drawing salary/pension in the bank you take a loan from.
- Working with reputed MNCs and companies.
There is no tax benefit on unsecured loans such as a small cash loan and a personal loan. The same holds true for a loan against gold and a property loan. However, you can avail a tax benefit for an education loan and a home loan, usually on the interest payment. Tax benefit may or may not be available for business loan, depending on the purpose the loan is taken for and used.