Here's what you need to do:
In order to find out the various banks you can avail a personal loan from, you will have to fill in the following details in the personal loan eligibility calculator:
Filling these details will help us determine your eligibility, so that you may see for yourself the various banks across which you can avail a personal loan at the best interest rates.
The personal details
which you will have to submit are:
Whether you are salaried or self-employed?
- It is important you tell us about this because the interest rates and other charges as well as the documentation vary for salaried as well as self-employed personnel.
- Also, the various eligibility criteria are not the same for salaried and self-employed. For example, if you are self-employed then your business should have had increasing revenues over the years and also a minimum of 3 year stability. Whereas, if you are salaried you should have had a work experience of a minimum of 6 months to one year.
The city you reside in
- While availing a personal loan, you should be at least 21 years of age and at the time of loan maturity should not exceed 58 years. This is required because a person's age is used to determine the loan repayment period.
- Note: Your retirement age is what will be considered, i.e. if it is less than 58 years, for instance, if your retirement age is at 50, and you are availing a loan when you are 48 years old, and then you will be eligible for a loan of no more than 2 years tenure.
The nature of your residence
- Choose the city you live in, so that our team and our bank partners there can get in touch with you.
- In certain situations, you may live in the outskirts of a city, it is important you tell us this beforehand so that the necessary permissions can be sought with a particular bank in order to go ahead with your loan processing.
The duration of your current residence
- Whether you live in your own house, a rented one or a hostel or a paying guest accommodation, will help the banks determine your stability i.e. whether you have been able to keep up with your living expenses.
- Note: If you are living in your own house or a parent owned house, it denotes a better chance for your application to be approved. If you are in a bachelor's accommodation, there are multiple parameters banks will look at, to be able to go ahead with the processing.
- Most banks look for a minimum stability of at least between 6 months to 1 year.
- Note:The longer you have stayed at your residence; the better is your stability. If you have been living in a bachelor's accommodation then a stability of at least 1 year is expected in order to better your chances of approval.
The necessary professional details
you need to enter include:
Your monthly net salary
Name of the organization you work for.
- This is the most important aspect among others, mainly because it directly impacts the maximum emi payable by you & interest rate.
- Here's a scenario: Suppose your net monthly income is Rs.45, 000 your loan eligibility is calculated as:
- The disposable income towards paying your emi would be: 60% of your net monthly income also known as Fixed Obligations to Income Ratio (FOIR).
- Here, 60% of 45,000 = Rs.27,000. So irrespective of the loan amount you opt your EMI should not exceed 27,000.
- However, if you have any ongoing obligations such as another loan for which you are paying an emi of Rs 10,000. Then your emi considered toward paying your loan will be 17,000.
- Here's how it's done:
- Income: Rs. 45, 000
- Portion of income towards paying emi: 60% of 45, 000 = Rs. 27, 000
- Current obligation: Rs. 10, 000
- Available income for paying new emi: Rs. 17, 000
- For instance, bank A will offer an interest rate of 14-17% to those who have incomes more than 75,000 whereas the same bank will offer personal loan at an interest rate of 17 and above to those earning below 75,000. This also depends on the company category your company is listed in that bank.
- Banks have their own list and categories of various companies, the interest rates as well as loan amount borrowable will vary depending on the company you work in.
- Based on where you work and how much you earn your loan eligibility is determined; let us understand this better:
- For example,
Let's say you and your friend are earning the same income but are working in different companies. The interest rates offered to both of you will not be the same because of the company category listing in the banks.
Type of industry you work in
This is also important for banks to help determine your loan eligibility because, the criteria for IT industry is not the same as BPO industry or a government organization for that matter.
The duration of your experience with your current employer
The longer you have worked in a company, is an indication of your financial stability.
Total work experience
Whether you had used or are using credit cards or details of any other loans you may have had
- Normally, a work experience of 2 years and above is ideal. This includes your work experience from the time you started working.
- Note:The more your work experience, the better will be your chances of approval.
What is the ideal cibil score?
- Having a previous history of loans or credit cards is an advantage as it helps lending institutions to understand your repaying capacity in a better light as there will be a record of it in your credit report. The same will also reflect in your cibil score.
- Tip #1: If you happen to have a large credit card outstanding, you can very well convert the same in to a personal loan. This will help you reduce your interest payable as well as put a stop to your mounting debt.
- Tip #2: If you have an existing relationship with a bank, i.e. if you have had any previous loans or credit cards with them, then you may be able to apply for a loan easily.
- The other vital aspect that determines your eligibility and loan approval is the CIBIL Score. Don't know what it means? Don't worry.
- Your cibil score is a numerical summary of your credit history till date (past credit cards and/or loan details).
How to get cibil report?
- The maximum score is 900, and the ideal, expected score is 750 and above.
- Tip:Never default on paying your monthly installments or credit card bills, as this will result in your score getting lowered.
Your desired loan amount and tenure
- On receiving the application of your loan, the bank will request for the credit report of the customer in question. Depending on the report received, the bank will try to assess your loan repaying capacity.
- Please note, CIBIL does not classify your reports as positive or negative, the reports are nothing more than documentation of your past loans as well as credit card records.
- Always keep in mind that, it is at the discretion of the bank to make the final decision on whether or not your loan can be approved.
- You could also apply for your cibil report simply for the purpose of reading and understanding it.
- The loan amount you require and preferred loan repayment period.
Here are some ways you can borrow the maximum amount and avail a reduced interest rate as well.
- If your income is say Rs. 35, 000; for 2 years you will be eligible for 5,04,000 but with the same income for a tenure of 5 years you will be able to borrow 12,60,000. Your interest rate will also vary depending on the tenure you choose.
- If for example, you avail 5 lakh, then your interest rate might be around 15 to 16% whereas if you are availing 10 lakhs or more, then your interest rate will be around 13 or 14%.
- Sometimes during offer period, some banks also offer lower interest rates for lower tenures.
- Ensure you choose an ideal tenure for your loan amount.
- Note: To be able to avail your desired loan amount you need to fulfill all the eligibility criteria put forth by the banks.
As you keep filling the relevant details, you will be able to find the number of banks you can avail a personal loan from and also the maximum loan you can avail, based on the details you have entered. This will give you an idea as to your options for availing personal loans.
In the next step, you will be able to find out:
Best interest rates and corresponding personal loan offers from leading banks, depending on your eligibility. You will also be able to find out the personal loan emi you will have to pay
Personal Loan Process ? A Quick Overview
Irrespective of the type of loan you have applied for, there are certain processes that are common to all loan applications.
The general process includes:
- Documentation of all the relevant documents pertaining to customer
- Logging in the loan application
- Awaiting approval/rejection status
- Signing of loan agreement
- Disbursal of loan
- All the Loans are one year and above tenure. No short term loans
- We do not do Pay Day loans
- All Loans provided by Banks and N.B.F.C
Looking for more information? Visit our Personal Loan Articles