Go through an eligibility calculation before you apply for personal loans

Unless you are the infamous Uncle Scrooge, you are sure to be bogged down by money issues once in a while and not everything can be managed by your savings or emergency fund (even if you do have one). It could be a situation of medical emergency or falling short of cash when you are travelling. Let′s face it. No matter how well we have planned for rainy days, one can never by fully prepared. This is where personal loans come in and help you combat such recurring financial emergencies. If you are looking for Personal Loan, there is an important factor you should keep in mind and that is eligibility. Before you submit your loan application, please use an eligibility calculator, and determine your loan eligibility.
Listed Below Are Top 5 Loan Eligibility Factors:
Age: Age is one of the most obvious and defining aspects of Personal Loan worthiness and most lenders insist that you are at least 21 and not more than 61 years, if you are salaried or self-employed. This is subject to change at the bank′s discretion. Lenders can verify your educational qualifications (and hence prospects of steady income) and employment history (number of years working) accordingly.
Financial background and stability: Banks do not just glance at your recent salary slips and approve the loan. They take note of your overall employment history, career breaks, your past credit behavior and repayment history. And the rules are not all same for salaried and self-employed. For instance, a salaried employee must have completed at least two years in his/her profession (with at least one year in the current company), while self-employed people must have no less than five years? experience in his/her profession. Some lenders have made these numbers more flexible though.
Steady Income: Your in-hand salary matters as lenders approve the amount you can afford to repay. You are advised to keep your EMIs less than 3- to 40 percent of your earnings. As you climb up the career ladder in terms of pay as well as position, your eligibility also improves.
Debt-To-Income Ratio or DTI: Whether you earn a sizable salary, if your DTI is more than 30 to 40 percent of your earnings, it can affect your eligibility negatively. It can even decelerate your CIBIL Score as it shows irresponsible finance management and credit hungry behavior.
Credit Score & Credit History: Your credit history has a huge role in determining your eligibility for any unsecured loan. Delayed payments, missed EMIs, too many credit card bills and too many rejected loan or credit card applications are just a few aspects that can mess up your CIIBL Score. If your CIBIL Score is less than satisfactory, start working on reducing the debts and paying off the dues diligently. In a few months, your score will improve.