Personal Loan Eligibility Calculator

What is Personal Loan Eligibility Calculator?

Usually a personal loan (unsecured loan), is taken by people to meet their financial crisis and demand. It is for them to decide the kind of loan required, and have a full knowledge of the criteria for a loan application. This kind of loan money can be used to meet any kind of personal requirements, other than home loan or vehicle loan, which are used for a certain purpose only. An online personal loan calculator helps understand your eligibility for the loan. Your personal loan eligibility criteria may have certain necessary limits to income you draw, or income of your spouse, assets, bank statements, income tax returns, etc.

Before applying for a personal loan, it will be wise to go through an online check whether you are eligible for a personal loan irrespective of whether you are self-employed or a salaried professional.  You can use SBI Personal loan calculator, HDFC personal loan calculator to name a few and access even loan eligibility calculator for different banks at our website.

What is Personal Loan Eligibility Criteria?

Who can apply for a personal loan? What are the terms and conditions to be met by professionals and entrepreneurs?  Note that at loanbaba.com, you can apply for personal loan only if you are a salaried individual. However, we will state eligibility criteria for others as well.

CONDITIONS

SALARIED PERSON

Business

Age

21 to 60

25 to 60

Minimum Income

Rs.3,50,000

Rs.4,80,000

City

Mumbai, Delhi, NCR, Bangalore,

Chennai, Hyderabad and Ahmadabad

From any corner of India

Co applicant

Not required

Required

Experience

Full time with a minimum experience of 02 years

At least 05 years of profitable business

Documents required

Latest bank statement, electricity bill, telephone bill, credit card bill, Owner certified letter with email address, passport  (valid) only if the address present in the application is the same, Registered paper of house lease,  ID photo proof.

Recent bank account statement for at least 6 months, electric bill, telephone bill, credit card bill, valid passport, owners email address details.

CIBIL Score for personal loan

750 to 900

Required

How to increase Eligibility for Personal Loan?

Below mentioned are ways you can increase your eligibility for personal loan:

  • Income: You must be salaried individual to get personal loan at loanbaba.com. The salary required minimum is Rs. 25,000 net, which must be credited to bank account. If you receive salary in cash, you can request the employer to credit it in your bank account, as proven income will better your eligibility for the loan.
  • Documents: You must keep all essential documents with you before applying for the loan. The documents can include the basic identity and address proof along with employment proof and salary slips, bank statements etc. If you have all documents to apply for the loan, then your eligibility automatically increases.
  • Clear Existing Liabilities: Reduce other debts and financial liabilities. Banks and NBFCs may not offer loans to those who have too many debts and bills to pay. One of the ways to improve your personal loan eligibility is to close the existing loans before taking a new loan.
  • Relationship with Bank: If you are a customer to a bank or NBFC, you can get loan from the same financial institute as they may already have trust on you and necessary documents you require applying for personal loan.

What are the ways which improves Eligibility for Personal Loan/Personal Loan Eligibility Tips?

Your CIBIL score for personal loan will also hold a lot of importance when it comes to loan approval. The minimum CIBIL score required for personal loan is usually 750+ but some financial institutions may offer the loan to you if you have a lower credit score. However, interest rate would be higher than usual in such cases. Many do not have a good credit history, and they may need personal loan with bad CIBIL score. However, not many banks offer personal loan for low CIBIL score.

We should keep in mind that a personal loan for a CIBIL defaulter or personal loan against low CIBIL score will not be granted easily by most of the financial institutions. Personal loan for CIBIL defaulters can be granted on providing a security or collateral to the financial institution. Before applying for a loan we should keep our financial records clean because minimum CIBIL Score required for a personal loan has to be kept in mind. Personal CIBIL report plays a significant role in verifying the financial integrity of the borrower.

Why Use a Personal Loan Eligibility Calculator?

Below mentioned are the reasons why you must use personal loan eligibility calculator:

  • It clarifies the different combination of loan repayments, and gives us a clear concept on the loan to be approached based on our repayment capabilities.
  • It gives us an idea of the amount of interest to be paid, how to save interest on loan, thus helping us to economically plan out our yearly finance.
  • If the calculator is fed with all the personal details, loan lease, existing EMI etc immediately it informs you on your personal loan eligibility.

What are the Benefits of Using Personal Loan Eligibility Calculator?

Below mentioned are benefits of personal loan eligibility calculator:

  • The Eligibility calculator personal loan makes calculation easy for the applicant as to how much loan is to be sanctioned by the bank.
  • It is designed by the experts to inform you about personal loan against CIBIL score, thus verifying your eligibility and other necessary information.
  • If you are confused between the loans offered by two or more different banks, along with criteria like interest rates, maximum loan offered, processing fees etc, online viewing and comparing will give you a clear picture of which loan to avail.

How to Use Personal Loan Eligibility Calculator by Loanbaba?

Below mentioned are the ways on using the personal loan eligibility calculator on our website:

  • Enter your net income for the month.
  • Adjust the slider on the bar to mark the interest rate.
  • Enter amount you pay for other instalments.
  • Adjust the slider on the bar to mark the loan tenure (number of years).
  • As per the entered value, at the left-hand side of inputs entered, you will be able to see the amount for total interest payable and the eligibility amount.

Personal Loan Eligibility Calculator FAQs

Below are important questions for personal loan eligibility.

  • add1. Is my eligibility for personal loan influenced by soft loans?

    If you do not have a financial record of soft loans on any financial statement, then your ability to attain personal loan will not be affected. However, even if there are no written records for the same to be checked by financial institutes, you will readily have lesser cash flow to pay for the personal loan, thus it may your new loan eligibility in terms of cash-flow insufficiency to pay for further EMIs.

  • add2. I have defaulted in the last loan payment. Am I eligible to take personal loan for debt consolidation?

    Many people take loan for debt consolidation. However, it may come to you at a higher interest rate and only after judging your ability to repay the loan. If your financial position is not convincing, the financial institute can reject the loan application.

  • add3. Can I add my spouse’s income to increase the eligibility for personal loan?

    Personal loan loanbaba.com is offered to individuals only. Thus, your spouse’s income may not make much difference when it comes to judging your eligibility for the loan. However, you can discuss this point with the financial institution and try your luck at negotiating the offer.

  • add4. Which are the Two Main Process of Calculation for Personal loan?

    Financial institutions have their own list of rules, for sanctioning a loan. The two most common methods for calculating loan eligibility are:-

    • Multiple Method: For example loan eligibility = (your net salary) × (a number from 9 to 18). This is based on the financial stability of the company you are working for, its progress and yearly turnover.
    • FOIR- Fixed Obligation to Income Ratio: It means the compulsory monthly payments, to pay off your already existing loans, could be any sort of EMI, home business or personal loan.
  • add5. How to Calculate Fixed Obligation to Income Ratio?

    FOIR (Fixed-Obligation-to-Income ratio) = (Total estimate of present obligation/Total salary received every month)*100

    FOIR is actually the ratio of your take home package and your existing debts.  Maximum FOIR up to75% is considering the facts that take home package is high. So the FOIR rule goes as such that if the earning is normal then the FOIR should not go over 50-60% of the take home package, and 75% in case of high package.

    FOIR is beneficial for the loan borrower as it is calculated in such a way, so that the applicant has sufficient money in hand to meet his daily requirements like rent, food, medical expenses and other essentials, even after monthly repayment t of loan.

    Financial Institutions usually use these methods to determine, the loan applicant’s eligibility; personal loans that are considered through FOIR method are usually the ones whose repayment period is over six months.

    For example, if your take home salary is Rs.60, 000 per month and you have existing personal loan for which the equated monthly you are paying is of Rs.5000 and also a car loan EMI is Rs.7000 per month. Consider the fact that you can pay up to 50% of your take home salary as instalment of your loans.

    Now the calculation part is here:

    50% of 60000 = 30000

    Personal loan instalment =5000

    Car loan instalment =7000

    So the disposable income for the new loan will be:

    30000-5000-7000=18000

    NOW THE FOIR WILL BE: (5000+7000)/60000=12000/60000= 0.2 or you can say 20%.

    That means the institution will not approve the loan; if the monthly EMI is over 18000 even the repayment period is long. So the loan will be approved only when the proposed amount will be below 18000 per month. So this method helps to decide how much instalment applicant can pay along with other existing EMIs.

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