If you are planning to avail of a versatile loan to meet your urgent financial needs without disturbing your savings and investments, a personal loan is what you need to check for. It is an unsecured loan provided by financial institutions based on different eligibility criteria like income, personal loan repayment capacity, and credit score. People take personal loans for multiple reasons like managing medical expenses, higher education, travel, home renovation, wedding, and more. Lenders offer loans at competitive interest rates to eligible borrowers.
After your personal loan application request, the chance of getting your desired loan amount is mainly dependent on eligibility. So, one must do good research on how to calculate EMI and eligibility before applying for a personal loan. If you require a convenient way to finance your expenses or existing debts, applying for a personal loan is your one-stop solution. So, here are a few top tips for calculating your personal loan EMI and Eligibility.
Personal Loan Eligibility
When it comes to personal loan eligibility, there are multiple factors influencing it. Your loan eligibility is based on factors like:
- Citizenship status
- Credit score
- Outstanding loans
- Loan repayment capacity
One of the most important factors from the above list is your repayment capacity. Personal loans being unsecured in nature, a lender doesn’t ask for collateral or security while you apply for a loan. This is why the lender needs to evaluate and rely on your current income and repayment capacity to determine your loan approval. In fact, your income and the repayment capacity are the first things lenders look at to assess whether you’re in a solid position to repay the borrowed amount.
If you’ve a high credit score and a stable current income, the lender is more likely to approve your loan application for a higher amount. Additionally, if you have a longstanding relationship with your lender, you may even be offered a pre-qualified personal loan with great ease. Speaking of loan eligibility, here are the prerequisites that an applicant must possess to qualify for a personal loan:
- You should be a residing citizen of India.
- Your age at the time of applying for the loan should fall between 25 and 58 years.
- Your minimum monthly income from all sources should be greater than or equal to INR 20,000.
- If you’re a salaried professional, you should possess a total work experience of 12 months and be employed with your current organization for a minimum of 6 months.
Though eligibility criteria for a personal loan vary for all lenders, it is advisable to research, compare, and choose the lender with relaxed eligibility criteria. Ensure you know the factors that affect or improve your eligibility to apply for a personal loan online.
How to Know Your EMI Amount Using a Personal Loan EMI Calculator?
A personal loan EMI calculator is a valuable tool with which you can calculate your EMI amount according to your loan amount, interest rate, and loan term. For instance, if Clix Capital offers personal loans for 12 to 48 months, you can calculate how much EMI amount you will need to pay if you choose a loan tenure of 24 months for the loan amount you borrow.
If the EMI amount is too high, you can choose a longer term to reduce the EMI amount so that you can repay it conveniently. As a result, you gain control over when you pay and what you pay with a personal loan EMI calculator.
Benefits of Using a Personal Loan EMI Calculator
While the primary function of a personal loan EMI calculator is to estimate your EMI amount, there are several other benefits of using this helpful tool. These include:
Helps in Making Loan Repayment Plan Easier: Once you know how much EMI amount you have to pay every month, you can make a budget to cover your regular expenses and also stay on top of your financial obligations.
Allows You to Compare the EMI Plans: You may easily compare and change the loan amount or loan term according to the EMI amount you get. It helps you determine what loan term and the amount will work the best for you, depending on your repayment capacity. You can calculate your monthly EMIs for the entire loan period of 12 to 48 months and decide which loan tenure is most suitable for your budget. You may also see the impact of tenure on your total interest outgo before selecting.
Gives You Accurate Estimates: If you know the exact interest rate, you can calculate your EMIs manually, but that is time-consuming, and there are possible chances of making mistakes. However, with a personal loan EMI calculator, you can get an accurate estimate without any possibility of errors.
Procedure to Calculate Your Personal Loan EMI
EMI means ‘Equated Monthly Installments’. It represents a fixed amount that you need to pay every month over the chosen loan tenure. It is the principal borrowed amount as well as the accrued interest. Your EMI amount is determined by the loan amount you’ve applied for, your chosen loan tenure, and the rate of interest levied by your lender.
Since the rate of interest offered by your lender is based on your eligibility, you can adjust the loan amount and tenure to arrive at your pre-empted EMI and decide what works best for you. To help you calculate personal loan EMI, use the Personal Loan EMI Calculator tool following the below simple steps:
- Carefully decide the personal loan amount you need to apply for. Enter the desired loan amount in the calculator.
- Select your preferred repayment tenure.
- Choose the convenient EMI amount you can pay each month.
- Based on the above calculations, the EMI calculator will display the best 3 plans for you. Choose what works for you and click the “Apply Now’ button.
Are you looking for a personal loan to cover your planned or unplanned expenses? Contact Clix Capital and to avail of a personal loan of up to ₹ 10 lakhs. Knowing your EMIs before taking out a personal loan would benefit you in many ways. It can make a significant difference in your tenure selection and final decision-making. Once you know your EMIs, you can decide on your loan amount and loan tenure for instant personal loans.