Personal loan Eligibility Calculator

Myth 1: A High Income Guarantees Approval

Truth:

While having a higher income can increase your eligibility for a larger loan amount, it does not guarantee approval. Lenders consider various factors, including your credit score, existing debts, and repayment capacity. It’s possible to have a high income but a low credit score, which can impact your eligibility.

Myth 2: A Perfect Credit Score is Mandatory

Truth:

While a good credit score is beneficial, it’s not the sole determinant of loan eligibility. Some lenders offer personal loans to individuals with lower credit scores, albeit with higher interest rates. It’s essential to explore options tailored to different credit profiles.

Myth 3: Salaried Individuals Have an Advantage Over Self-Employed

Truth:

Both salaried individuals and self-employed professionals can qualify for personal loans. Lenders have specific criteria for each category, and self-employed individuals may need to provide additional documentation to verify their income. It’s important to understand the requirements for your employment status.

Myth 4: Existing Loans Automatically Disqualify You

Truth:

Having existing loans doesn’t automatically disqualify you from getting a personal loan. However, it can affect the loan amount you’re eligible for and your debt-to-income ratio, which lenders consider when determining your eligibility. It’s advisable to manage existing debts responsibly.

Myth 5: Rejection from One Lender Means Rejection Everywhere

Reality:

Each lender has its own set of eligibility criteria and assessment processes. Just because one lender rejects your application doesn’t mean others will do the same. It’s possible that a different lender may have criteria that align better with your financial profile.

Myth 6: Age Is a Barrier for Personal Loans

Truth:

While there is a minimum and maximum age limit set by lenders, being in the specified age range doesn’t guarantee or deny eligibility. It’s more about assessing your ability to repay the loan based on your financial situation, rather than solely considering your age.

Myth 7: Only Big Banks Offer Personal Loans

Truth:

While established banks are well-known for their loan offerings, many non-banking financial institutions (NBFCs) and smaller banks also provide personal loans. These institutions may have more flexible eligibility criteria and may cater to a broader range of borrowers.