Over the past few years, instant loans have emerged as the most preferred means of financing. There has been a steady rise in the number of people who seek instant loans to meet their financial needs. Easy access, no collateral, quick processing, minimal documentation and unrestricted end-use are some of the features that have made these personal loans so popular. In addition to this, online loan application has made the process swift and hassle-free.
Today, you can easily submit your personal loan application online. But before submitting your loan application there are a few things that you must not miss out on. One of the most important things that you must do before submitting your loan application is check your loan eligibility.
Read on to discover the quick hacks to check your personal loan eligibility online.
Why check your eligibility for personal loan online?
Checking your eligibility before submitting your loan application is very important to avoid loan rejection. But visiting different lenders physically to check your loan eligibility is a tedious task. Thankfully, today, you can check your personal loan eligibility online. You can simply visit the lender’s website and check their eligibility requirements. You can also download a loan app and check your personal loan eligibility.
Though the eligibility requirements for personal advances are simple, it is important for you to meet each one of them. Most lenders classify their eligibility criteria based on parameters like age, salary, credit score, ongoing debts etc.
In addition to this, you can also use a personal loan eligibility calculator to estimate the total loan amount that you qualify for. Applying for a loan higher than your eligibility limit will result in your loan application rejection. Further, exhausting your total loan amount is never a good idea. So, always apply for a loan amount that you absolutely need and that is within your eligibility limit. Here, you must note that different lenders will offer you different maximum loan amounts. So, make sure to conduct your research before sending your loan application.
How to Check Your Eligibility for Personal Loan Online?
You can complete the following steps to check your eligibility for the advance online.
- Visit an online loan app and navigate to the online eligibility calculator.
- Next, on the calculator, enter your type of employment.
- You would then need to provide the name of your employer company.
- Then, proceed to enter your monthly salary. In this value, you need to enter the net salary amount that you actually receive in hand/bank for spending.
- In the next step, provide your city of residence. Depending on the calculator you are using, you may also be asked to provide your residential pin code.
- At last, you need to provide your date of birth for age assessment.
Once you have entered all these details, your eligible amount of personal advance is calculated and displayed on the screen. If you are a first-time user of the calculator, you may also be required to provide your contact details before getting the results.
Based on this amount of eligibility, you can proceed to apply for a loan amount that’s within the limit.
Factors That Affect Your Personal Loan Eligibility
When assessing your profile for sending a loan application, you need to be aware of the factors that impact your eligibility for the advance. They commonly include the following:
The borrower’s age defines how many years of earning capacity they have remaining for easy servicing of the loan. That’s why your age is taken into consideration when computing the eligible amount.
Your monthly income directly impacts your repayment capacity. Ideally, most lenders see that your total loan EMI should not exceed 50% of your monthly income. Based on this criterion most lenders calculate your loan amount eligibility.
- Existing liabilities
If you are already servicing multiple loan liabilities, they impact your repayment capacity. Hence, lenders check your existing liabilities before approving your loan application and determining your loan amount eligibility.
- Credit score
Your credit score plays a crucial role in determining your creditworthiness. Lenders check your credit score before approving your loan application. They also determine your maximum loan eligibility based on your credit score.
It is very important to check your personal loan eligibility before submitting your loan application. Not meeting the eligibility criteria mentioned by the lender would result in loan rejection. This can negatively impact your credit score.
Today, you can easily check your loan eligibility online by visiting the lender’s website or by downloading a loan app. There are also several loan comparison sites that will give you a fair idea of different lenders and their eligibility criteria. You must make sure that you tick all the boxes before submitting your loan application.
In addition to this, you should also be able to submit the necessary documents requested by the lender. Though the document requirements for a personal loan are minimal, you must make sure that you have the documents right with you.