Everyone aspires to enjoy a successful and comfortable lifestyle, but life is unpredictable, and we must be careful with our money. A Personal Loan is an excellent financial tool for handling sudden financial requirements such as loss of employment, reductions in salary, or unforeseen medical expenses.
This article will discuss the importance of a Personal Loan, how you can check your eligibility, and finally, get one for yourself.
What are Personal Loans?
Personal Loans are unsecured loans granted to you based on your credit history and the ability to pay them back. These loans are also known as ‘consumer loan’.
You can use this flexible loan to cover your immediate expenses, from renovating your home and taking a vacation to paying for your wedding.
Unlike with Home or Auto Loans, you are free to use the money from a Personal Loan for numerous purposes, with the following benefits:
- No security or collateral requirement
- Minimum paperwork
- Quick disbursement
- Fixed interest rate
- Flexible loan terms
- Simple EMI options
- No end use restriction
How to get a Personal Loan?
Getting a Personal Loan on the same day is now possible, thanks to the emergence of Personal Loan online applications that can be filled out on the lender’s website. However, before you apply for a Personal Loan online, use a Personal Loan eligibility calculator to find whether you meet the requirements. Once you complete the lender’s requirements, getting a loan can be easy.
What is a Personal Loan EMI Calculator?
Using a Personal Loan eligibility calculator, you can determine your loan amount and rate depending on your income and ability to repay it. In addition, you can use it to plan out your maximum borrowing amount.
A Personal Loan EMI calculator calculates your EMI amount based on several variables, including age, income, credit history, employment status, and financial obligations.
Advantages of using a Personal Loan Eligibility Calculator
A loan eligibility calculator makes it easier for you to apply for Personal Loans. The main benefits of this tool are:
- No Loan Rejections
Using a loan eligibility calculator, you’ll know whether you are eligible or not. For instance, if you require a loan of ?1 Lakh and your eligibility satisfies the lender’s requirements, you will receive the loan amount promptly.
Similarly, if the loan calculator indicates that you are ineligible, you can work on the loan requirements to be qualified. This way, you can avoid having your loan application rejected.
2. Accurate Evaluation of Loan Repayment is Possible
The Personal Loan EMI calculator determines your monthly payment based on the interest rate for salaried and self-employed borrowers. However, the desired loan amount must satisfy the lender’s eligibility requirements. With the help of the loan eligibility calculator, you can accurately and concisely define your loan repayment and eligibility.
3. Set Interest Rate for Your Loan
Personal Loans come with fixed interest rates, which stay the same for the duration of the loan. However, this interest rate varies from lender to lender and depends on certain aspects.
So, a Personal Loan eligibility calculator can estimate your fixed interest rate depending on factors such as repayment consistency, etc. In addition, a Personal Loan EMI calculator will determine the interest rate you will need to pay on the chosen loan amount.
These two tools can help you choose the interest rate that best meets your budget and help you decide which Personal Loan to go for.
4. Save Time and Effort
Using the Personal Loan eligibility calculator allows you to choose a reputable lender with a competitive interest rate and flexible payback terms that fit your budget. Therefore, you save a lot of time and effort.
Qualifications for Personal Loans
As an “unsecured loan,” Personal Loans are subject to extensive due diligence by Non-banking Financial Companies (NBFCs). Most significantly, they examine your ability to make ends meet.
Your credit score, monthly income, continuing EMIs, and other criteria are vital in determining whether you qualify for a loan.
Conclusion
Personal Loans are a great way to tackle vast and immediate financial requirements. It can help you lead a balanced and healthy financial life by taking responsibility for yourself and your loved ones. Therefore, use a Personal Loan and EMI calculator to check the requirements and eligibility.
Happy Planning!
Also read : ADB, India sign $96.3 million loan to improve water supply and sanitation in Himachal Pradesh