Personal loans are a type of unsecured loan that is sanctioned by banks and certain financial institutions to prospective borrowers without any collateral security for a specific tenure as stated in the terms and conditions of the loan. Individuals who have a clean repayment track record, a steady income source and a decent credit score wishing to avail financial assistance without having to specify the purpose of the loan or without having to present any asset as collateral can easily apply for a personal loan.
Tips for Choosing Lender for Personal Loan
The basic and major factors to consider before opting for a specific bank/lender and applying for a personal loan are:
- Interest Rates: Longer tenure loans tend to have a higher rate of interest as compared to shorter tenured loans.
- Flexible repayment tenures and options: The repayment tenure of a personal loan ranges between a year and five years, and it is up to the borrower to opt for a specific period of time most convenient to them.
- Processing fee and other valid deductions: Banks and other lenders may or may not deduct a decent or zero processing fee based on the terms and conditions of the loan amount applied for.
- Customer support and helpline services: Many people consider bank related issues tend to be tedious and are often perceived to be complicated. A robust and responsive customer service rating of the bank testifies the bank/lender’s support and effort towards helping their customers.
Specifications of Personal Loan Calculator
Although loan calculators can provide an overall figure of repayment, one must not consider it as a final number. Source: The Calculator Site
What is a Personal Loan Eligibility calculator?
It is the calculator details the various defined eligibility criteria that are required to apply for personal loans. Personal Loan Eligibility calculators can be found on the official websites of various banks and lending institutions.
Are all Personal loan calculators the same?
It is oftentimes mistakenly assumed that the results obtained from any one of the banks or lenders’ calculators will be what the results will be from other banks. However, this is not the case as it should be noted and kept in mind that the personal Loan calculator regarding EMIs and eligibility of one bank or financial institution may or may not be different from another.
Hence it is the responsibility of the prospective borrower to do proper research in order to gain clarity on all the personal loan options available in the market.
Why to check your eligibility by personal loan calculator before applying?
The calculation of your eligibility is extensively important as it lets you know which of the available loans you are eligible for. It prevents you from applying for loans that are not going to be improved. This is very significant as the rejection of applications can taint your credit history.
What is a personal loan EMI calculator?
It is a Personal Loan calculator that focuses on EMI amounts. Provided by banks like Standard Chartered etc is an assisting tool that helps borrowers to determine the amount they will be required to pay as EMI even before they get the loan.
For a better understanding, let us take the example of the Standard Chartered Personal Loan calculator to calculate the EMI amounts which allow prospective borrowers to plan and prepare the means and strategies by which they will pay off the repayable amount owed to the bank even before applying let alone availing the loan.
Here is how one can use the Personal Loan calculator for calculating the EMI:
- Visit the official Standard Chartered Website.
- Click on the search logo and type EMI calculator.
- A new page will open, scroll down and locate the EMI calculator
- Just enter the loan amount, interest rate and tenure of the loan you are wishing to apply for.
- The Standard Chartered EMI Personal Loan calculator will calculate and determines the tentatively payable EMI amount within seconds.
The SC EMI calculator also offers ‘Approval in Principle’ service which helps inform the individuals whether they are eligible for a loan or not.
What is the impact of credit score while calculating eligibility for personal loan?
One of the biggest determinants that decide whether the loan application will be approved or not is the credit score and the repayment track record. Clear history and a higher score will allow a better chance for the application to be approved. A credit score of over 750 is advised to be maintained.
To conclude, it should be known that there are quite a few options to consider from as there are a large number of banks and financial institutions offering financial assistance via means of a personal loan. The decision to pick one such lending institute should not be made out of impulse and without any proper research on your part. The loan offer one picks must be most adept and suitable for one’s own needs, suitability, and convenience.