Why Personal Loan Apply Online beneficial for you?

Personal loans are the most demanding loans out of all and the reasons are many. This loan is generally unsecured available for both salaried as well as self-employed professionals. Having said that, banks and NBFCs have certain criteria on the basis of which they accept a personal loan application. Also, there are some factors that affect the eligibility of a personal loan and these factors are as follows:

Factors affecting personal loan eligibility online-

Below are the factors affecting the eligibility of a personal loan when you are applying online:

Monthly Income: A person who wants to apply for a personal loan must know that a good source of income can get you low-interest rates from the banks or NBFCs. Hence, feel free to move ahead and apply for this loan.

Age: A personal loan borrower must meet the age criteria which is generally between 21-58 years. However, some lenders have the upper limit of 65 years as well depending on the profession of the applicant.

Monthly Expenses: The monthly expenses like investments and other financial responsibilities are considered by the banks while reviewing the loan application. If the monthly expenses are higher, getting high loan amount can be hard but if you are free from this trap, you can expect a hassle-free procedure.

Any Other Loan: Generally, people who have lower income and also are existing loan borrowers get higher rates. However, the repayment capacity of the borrower is higher if he/she is free from any other loan or the person easily saves more than 50% of his salary.

Credit History: The credit history of the applicant is also taken care of as it plays a vital role in understanding the past payment habit of the applicant. As a result, maintaining a healthy CIBIL score is very helpful to get more fund.

Job Stability: Person with good stability in his/her profession is usually impressive to the lender. Having said that, if you are having a work experience with a minimum of 2-3 years, you can get a hassle-free loan.

Relationship with the Bank: Maintaining a healthy relationship with the banks/NBFCs is very important for a smoother loan. This increases the chances for the borrower to get the higher loan amount at low-interest rates.

Category of Your Employer: If the borrower is working in an MNC or his/her employer comes under fortune 100 companies, the loan eligibility increases as the loan repayment capacity also increases.  

How to apply online

Unlike the offline process, the online procedure to get a loan is easier and hassle-free. Yes, in this world where everything is just a click away, personal loans are also available online. All you have to do is check eligibility and apply. For a better deal, a person is always suggested to check the rates, calculate EMI, and then compare the offers before he/she finalizes the deal. So, here are the personal loan rates in top 5 banks in India:

• ICICI Bank-11.59% p.a. onwards
• HDFC Bank-15.75% p.a. onwards
• Axis Bank-15.50% p.a. onwards
• State Bank of India- 11.90% p.a. onwards
• Kotak Mahindra Bank-11.29% p.a. onwards

PL Eligibility Calculator-

You can also check your personal loan eligibility with the help of the eligibility calculator. Since banks and lenders have set certain criterion on the basis of which they accept a personal loan application. Having said that, the eligibility of a salaried person’s eligibility is different from a self-employed person. However, you can calculate your eligibility just like the example given below.

Suppose you are a salaried person with the net monthly income of ₹80,000 and you save around ₹40,000 of your salary every month after you are done with other financial liabilities. Now, you have thought of applying for a personal loan but want to have an idea about how much loan amount you can get. We can have an idea about by assuming the rate, tenure, and amount.  

Amount- ₹1 Lakh

Loan Tenure- 5 years

Rate of Interest- 11.29%-24%

Your monthly EMI will be- ₹2,189-₹2,877

Here is how you can calculate the maximum loan amount

₹1 Lakh x 40000/2189 = ₹18.27 lakhs

₹1 Lakh x 40000/2877 = ₹13.90 lakhs

So, your loan amount eligibility will range between ₹13.90-18.27 lakhs.

Now, as you can see online process gives you wider options and saves your time as well. So, why waste time in running from one bank to another? Go digital and apply online now!

Author’s Biography-

Srishti Singh is an expert in writing about personal loans and has been writing about the same from quite a long time now. She has shared her opinions on the personal loan apply online benefits and has helped people make the right move.