Personal Loan Eligibility

Personal Loan Eligibility calculator will help you to calculate your personal loan eligibility in a second. Personal Loan Eligibility Calculator is very beneficial financial tool. To use Personal Loan Eligibility calculator you have to put your regular income, where you wok, and savings and monthly expenses so the device can show your Personal Loan Eligibility. Personal Loan Eligibility calculator is available online. As per the banks rule a person can pay EMI of 40% of his regular income. If you are going to avail a personal loan must check your Personal Loan Eligibility on Personal Loan Eligibility calculator.

How to calculate Personal Loan Eligibility?

There are various financial institutions that are providing personal loan and they all have different personal loan eligibility criteria’s. They always try to give the maximum amount to the person is eligible for.

Basically a Personal Loan Eligibility is calculated in two methods one is the Multiplier Method and the other one is FOIR (Fixed Obligation Income Ratio).There is also an other method FOIR which depends on the monthly installment expected to be paid as compared to the NET income of that person.

• Multiplier Method

  Multiplier Method is the one of the easiest method the formula is-
  Personal Loan Eligibility = (Your net salary) * (a number from 9 to 18)
  This depends on the company you are currently working for basically its stability, growth and turnover also helps to make your Personal Loan Eligibility higher.

• FOIR

  If you are someone who pays monthly fixed payments like personal loan EMI, Credit Card bill or any kind of EMI. The formula for calculating FOIR is
  FOIR = (Sum of existing obligations/ Net Take Home Monthly Salary)*100
  The ratio of your net take home monthly salary and your fixed obligations is FOIR. The maximum FOIR which the financial institutions consider is up to 75%, and that too when the take home monthly salary is high. The FOIR is calculated in a way that, if your current loan application is approved, your FOIR should not go beyond 75%. In the case of normal earning range, the FOIR should not go beyond 50-60% of the take home salary.

Factors which affects Personal Loan Eligibility Calculator

Personal Loans are unsecured loans which say that the lender can’t ask for any asset or collateral to mortgage. If the borrower failed to repay the loan the lender can’t ask for anything which is one of the main reasons why the personal loan eligibility is high. Personal Loan Eligibility Calculator helps you to calculate your Personal Loan Eligibility based on your inputs so here are the factors which affect your Personal Loan Eligibility Calculator.

• Applicant’s Age

  The applicant’s age is important on Personal Loan Eligibility criteria. The age group for personal loan eligibility is 21 to 60 years old. The younger you are there are much chance that you are more eligible for a personal loan. You will even get offers you are applying for a personal loan in younger age. Because you’re personal loan eligibility is higher when you are applying it in younger age.

• CIBIL Score

  Your CIBIL Score matters a lot on your personal loan eligibility. If you have high CIBIL Score that means your Personal Loan Eligibility is high and if you have low CIBIL Score your Personal Loan Eligibility is low. Your CIBIL Score depends on how you pay your personal loan. To make your CIBIL Score high you need to repay your personal loan on time.

• Employment

  Your employment stability matters a lot on your personal loan eligibility. If you are a salaried person your employer also matters as every financial institution have a company list and if your employer is in the CAT A list your Personal Loan Eligibility will be high. And if you are working there more than two years your Personal Loan Eligibility will be high. And if you are self-employed you must run your business at least for five years to have high personal loan eligibility. And if you are working with a top notch company you salary is also high and if you are in a high position that means you will have a bright career ahead so your Personal Loan Eligibility will be high.

• Existing Debt

  If you are someone who has existing debt on his neck your Personal Loan Eligibility is comparatively low. As you are already paying EMIs on those and if you are taking a new one this can be your liability and you won’t get any loan if your existing loans has already consumed 40% your monthly income.

• Geographical Location

  Geographical locations matters a lot on your Personal Loan Eligibility as if you are from metro city you have higher Personal Loan Eligibility than someone from rural areas. Also some financial institution has red marked on some places so if you are from one of those places your Personal Loan Eligibility can be lower.

• Housing Situation

  If you have your own house there are maximum chances that your Personal Loan Eligibility is high and your personal loan will be approved but if you are living in a rental house your Personal Loan Eligibility is low as your monthly income gets lower for that.

Personal Loan Eligibility Criteria