Sometimes you may fall short of funds despite planning your finances in the best possible ways. This could be due to some emergency, or you may have predicted a lower requirement of funds for buying something or an event.
In such situations, Personal Loans can come to your rescue. Most NBFCs offer Personal Loans, which are easier to apply and quicker in approval.
However, it is advisable to check your suitability using a Personal Loan eligibility calculator. It is a great tool that can help you in your decision-making process.
A Personal Loan eligibility calculator is an online tool that helps you calculate the maximum loan you can get. This tool uses your income, credit score, age, other financial obligations, running loans, and employment history to make this calculation.
Once you input the required details, the calculator computes your loan eligibility in a few seconds.
A Personal Loan eligibility calculator can help make borrowing simpler and smoother. This tool has certain advantages.
You can estimate the loan amount you can get based on the parameters you enter in the calculator. This will help you apply for the right amount of the loan.
If per the calculator, you are eligible for ₹200,000 and apply for a loan of ₹300,000, your loan application will get rejected. You can reduce the loan application amount, or you can work on improving your loan eligibility.
A loan application rejection will make you lose the processing fee and set you back by a few days in case you need to apply for the loan again (to a different lender).
When your loan application gets rejected, your credit score also is affected. When you apply for a loan, the lender seeks your credit report to assess your creditworthiness. This is called hard inquiry; too many of these in a short span can cause your credit rating to fall.
After your application gets rejected, you apply for a loan again to a different lender; this will generate another hard inquiry and lower your score. To avoid this, it is a good idea to use a loan eligibility calculator and plan your loan.
You must repay your loan in equal monthly instalments. For this, you should know your EMI burden before you take a loan, as missing EMIs has multiple consequences. You will have to pay hefty charges and penalties on missed EMIs, and any missed payments get reported to the credit bureau. This can impact your credit rating adversely.
Knowing the monthly instalment helps you plan your finances better, and the Personal Loan eligibility calculator also helps calculate this amount. If you feel the EMIs will be too high, you can reduce the loan amount or increase the tenure.
Different lenders offer loans at different rates and varied terms and conditions. With the help of the eligibility calculator, you can compare the loan offer from different lenders to estimate the difference due to the interest rate variation. While the interest rate is crucial, you should consider other factors also when choosing a lender.
You can compare the interest variation with other aspects, like some may charge a higher processing fee to pick the best deal. Comparisons with variations in loan tenure are also possible with an eligibility calculator to help you choose a suitable Personal Loan term.
If you approach lenders individually to check your eligibility, it will take a lot of time; trying to do it on your own may not give you accurate information and will be time-consuming.
With the help of the eligibility calculator, you can get precise details in minutes with just a few clicks. Comparisons are also simple; using a Personal Loan eligibility calculator helps save time and gives correct information.
Digital tools have made all financial activities much more customer friendly. A Personal Loan eligibility calculator is one such tool that makes taking a loan effortless. It helps you manage your finances better and saves time. So, if you need a loan, use an eligibility calculator before you approach any lender.
Disclaimer: This article is published in association with Poonawalla Fincorp and not created by TNM Editorial. Please do your own research before applying for loans from the above services and seek independent legal/financial advice if you are unsure.