Personal Loan Eligibility Calculator - Check Eligibility Online

• It can help assess the loan amount you are eligible for.
• It is free of cost.
• It is easily accessible online and gives instant results.
• It helps in making informed borrowing decisions and reduce the chances of loan rejection.

• Visit Paisabazaar’s Personal Loan Eligibility Calculator page
• Enter the following details
  • Your age
  • Desired loan amount
  • Rate of interest (yearly)
  • Loan tenure (either in months or years)
  • Monthly income
  • Existing monthly EMI

• Eligible loan amount
• Estimated EMI
• Number of EMIs
• Eligible tenure

• Step 1: Enter Your Details
• Step 2: Check Your Basic Eligibility - The calculator first checks whether you meet the basic eligibility criteria.
• Step 3: Calculate Your Affordable EMI - The calculator estimates how much EMI you can comfortably afford after considering your existing loan obligations.
• Step 4: Calculate the Maximum Loan Based on EMI - Using your details, the calculator estimates the maximum loan amount you can repay comfortably.
• Step 5: Compare with Your Desired Loan Amount - The calculator then compares two values - your desired loan amount and your estimated eligible loan amount
• Step 6: The calculator then checks whether your desired loan amount falls within the estimated eligibility based on the interest rate and repayment tenure selected.

• FOIR: Fixed Obligation to Income Ratio depicts the proportion of your monthly income that is tied to fixed expenses. Based on the available disposable income, your loan amount eligibility is determined.
• Income: Lenders analyse your monthly income to understand your repayment capacity. Many lenders in India require a minimum monthly income of Rs. 15,000, which can go up to Rs. 25,000 in many cases as well.
• Existing EMI: The number of current loan EMIs or credit card dues also plays a decisive role in your eligibility.
• Credit score: A credit score of 760+ is preferred by lenders for personal loans in India.
• Employment: The type of your employment (salaried or self-employed) also decides whether you qualify the eligibility criteria of a lender.
• Company profile: The nature and industry of your company influences personal loan eligibility.
• Age: Borrowers between the age of 21 years and 65 years are usually eligible for personal loans.

• A preliminary eligibility check is done using your basic details, including your monthly income, existing DTI, age, credit score, etc.
• This check helps you understand whether you may qualify for a loan offer or not.
• This does not include the final assessment by the lender.

• Pre-approved offers are extended to select customers of a bank.
• A customer’s existing relationship with the bank, repayment history and credit profile are usually considered for pre-approved offers.
• Though pre-approved offers have higher chances of approval, final approval cannot be guaranteed.

• Your income
• Your credit score and profile
• Your existing debt-to-income ratio
• Lender’s internal policy
• Risk assessment

• Approve your desired loan amount
• Offer lower loan amount
• Offer higher interest rate
• Reject application

• KYC verification
• Income proof verification
• Employer verification (if required)
• Bank statement review
• Address verification (in some cases)

Any mismatch between the information submitted and the verification results may affect the approval decision.

Disbursal

• After your verification is successful, the lender will initiate disbursement of your loan.
• After disbursement, the loan amount may take some time to reflect in your account.

• Increase income: Higher income helps boost loan eligibility.
• Reduce EMI: Lower existing debt to make space for new loans.
• Improve CIBIL: A higher CIBIL score showcases you as a low-risk borrower, improving personal loan eligibility.
• Choose longer tenure: Longer tenure brings down your monthly EMI and makes you eligible for a higher loan amount.
• Avoid multiple enquiries: Applying for multiple loans at the same time initiates hard enquiries by lenders. This can lead to a drop in credit score, lowering your creditworthiness.
• Maintain repayment history: A timely repayment history improves your credit score and chances of loan approval.

• Poor CIBIL: Your credit score tells lenders about your financial discipline. A lower CIBIL often leads to rejection as it involves more risk in lending.
• Low income: Low income signifies insufficient repayment capacity, leading to personal loan rejection, especially for higher amounts.
• High FOIR: A high FOIR reduces your disposable income and repayment capacity.
• Job instability: An applicant with an unstable job can be risky to lenders.
• Short work experience: Lenders usually prefer applicants with a minimum of a year of work experience.
• Wrong information: Any wrong information in the loan application may lead to rejection in the verification process.