- May 21, 2020
- Posted by: Ganeshcbani
- Category: Blog
How do I check eligibility for personal loans?
Multiplier Method – Under this method, banks will use a multiplier to calculate your eligibility for the loan. The applicable multiplier depends on your household wage and company profile. The higher the payroll and the more reputed the company, the greater the multiplier and eligibility for your loan. Banks generally apply a multiplier between 9 and 27, and these are defined by the bank for different levels of pay and internal company categorization. Increased eligibility for loans is higher in the group to which a company belongs and lower the personal loan rate of interest.
FOIR (fixed income obligation ratio)
This method is applied to calculate your eligibility for loans based on your maximum EMI or monthly installments with regard to net income after having taken account of other fixed expenditure, such as rental and EMIs. Banks or NBFCs generally accept 50 to 75% of your net income as an EMI, existing permanent bonds and outstanding credit card. When the bonds meet the requirements of the bank , the bank will either raising the loan sum or increasing the term of the loan.
The bank determines your eligibility so that fixed bonds (including the new loan’s EMI) do not exceed 50% of your income. This percentage will vary from loan to loan. This can reach up to 65 percent for high-income borrowers.
Personal Loan eligibility calculator is a free, easy-to-use device that clarifies the amount of loan you qualify at various interest rates and the period that best suits you. It is difficult to obtain a personal loan, particularly if you are not sure of your admissibility. If you want a large amount but don’t have a very strong credit history, then it can be hard to get the desired amount. This is where a personal credit eligibility calculator is used. Personal loan eligibility is determined on the basis of your monthly salary, total EMIs and the type of company for which you are currently employed and how long you have worked. Both of these are significant considerations to determine the validity of your loan. It calculates the maximum amount of the loan you qualify for based on the maximum EMI that you can afford.
A complete assessment of all of the above factors is made in order to determine the best offers or loan agreements for you. You can use a personal loan eligibility calculator to get a good picture of the possible loan agreements you can get, and the best thing about them is that this is not a loan application.
Income Based Determination
Your monthly personal loan income should be Rs. 25,000 at least. However, some banks lend to people with wages less than Rs. 25,000. Banks also follow a different limit to calculate your monthly revenue-to-fixed bond ratio. If your income is RS 30,000, the bank will calculate your eligibility to ensure that fixed bonds do not exceed 50 percent of your income. However, if your earnings are greater than Rs. 40 000 per month then banks must accept higher fixed income commitments of 65%, which means that up to 65% of your income (including rent and other EMI) will be liable for a loan from a bank. The higher the salary, the greater the chances of getting high loans.You can use the calculator for personal eligibility for loans to check your current eligibility for home loan offers by different banks and NBFCs.
What should be the Loan Amount if the salary is Rs. 50000/-?
The amount of the personal loan is FOIR based and multiplied. The lower of these two factors is the qualifying amount of the loan. Suppose the bank gives a 50% loan, and the maximum multiplier is 20, and no EMI is available. The maximum amount for personal loans that you can pay as EMI is Rs. 50000 * 60% = Rs. 30000. When you take a personal loan for up to 5 years , the amount of the loan is Rs. 30,000 * 12 * 5 = Rs. 18,00,000. The multiplier is, however, 20, then the amount of the loan is Rs. 40,000 * 20 = 8,00,000. The amount you will earn on Rs. 40,000 is therefore Rs. 8,00,000.
How much loan amount provided to Rs.70000 payscale?
The amount of the personal loan is FOIR and multiplier. The lower of these two factors is the qualifying amount of the loan. Suppose that the FOIR is 60% and the multiplier is 20%, then there is no EMI. The maximum amount to be paid by EMI, then, is Rs. 70,000 * 60% = Rs. 42,000. If you receive a personal loan for a maximum of 5 years, you will be charged Rs. 42,000 * 12 * 5 = Rs. 22,20,000. The multiplier however is 20, and the loan amount then amounts to Rs. 70,000 * 20 = 14,00,000. The amount you receive at Rs. 70,000 is therefore Rs. 14,00,000.