Apply for a personal loan in the following manner.
When you apply for a personal loan, lenders check your willingness and ability to repay in relation to your credit history as a measure of your willingness to return the loan amount, and your income as a benchmark for your ability to repay. Here are a few reasons for loan rejection.
For more details check Personal Loan Eligibility Criteria & Calculator[link]
When you avail a personal loan approved by a guarantor, you generally pay a higher rate of interest on you loan due to the higher risk of lending. A lender will require a guarantor of you in the following circumstances.
You need to satisfy your lender with the following conditions to be eligible for a personal loan without a guarantor.
Therefore, you should always aim for taking a personal loan without a guarantor.
Your Loan EMI depends on three factors.
Use the following mathematical formula to calculate you EMI.
EMI = P x r x ( 1 + r ) n / [ ( 1 + r ) n - 1 ]Where,
Benefits of using Ruloans' Personal Loan EMI Calculator are as follows
You have easy access to Ruloans' Personal Loan EMI Calculator online from almost anywhere provided you have a desktop, laptop, tablet, or smart phone at your disposal.
You don't have to key in the preferred numerical figures. The calculator has sliders that require to be moved to the preferred figures from the given range to make the process of calculation an effortless process in real time.
Using a calculator or calculating manually may turn out to be tiresome and time consuming process, and the results may sometimes be erroneous. The Ruloans Calculator slider method saves you a lot of time.
The Ruloans Calculator functions on proprietary computerised algorithms designed to give you accurate and precise results simultaneously.
With results in the form of Loan EMI, Total Interest Payable, Total Payment (Principal + Interest), you have all the help in the world to plan your loan better.
Your credit score reflects your creditworthiness. Good credit score deserve better rates of interest and vice versa.
You lender offers you an interest depending on your principal amount after considering your repayment history, and other criteria.
Typically, shorter loan tenures deserve better rates of interest, while longer repayment periods are awarded higher interest rates.
Some major factors that affect your personal loan interest rates are as follows
Your personal interest rate depends much on your income, which indicates your loan repayment capacity. People with high disposable incomes have greater repayment capacities, than those with lower incomes. Lenders prefer high and stable disposable incomes for lower rates of interest.
Credit Scores are important eligibility criteria, since these three-digit scores reflect the measure of your creditworthiness. These figures are calculated after considering your credit report, which keeps records of your financial health including transactions, debt, and credit behaviours. Higher credit scores encourage the trust of your lender in you, which makes for lower interest rates.
A lender looks for stability in the borrower employer, since a borrower employed with a good and stable employer assures job stability and income stability. Borrowers working for well-known companies and MNCs are preferred. Long-term stability in an employer's status calls for lower interest rates.
Your Debt-to-income Ratio happens to be the ratio of your total debt payments divided by your total income. If major part of your salary goes in to clearing debt payments, the lender might choose to offer you higher interest rates, as your debt to income ratio indicates higher risks. In short, higher the debt burden, higher the rate of interest on your loan.
Should you have a long-standing relationship with your lender, expect better rates of interest on your loan.
Histories of defaults are another reason why a lender considers you a high-risk borrower. To cover a high-risk borrower, the lender will at first offer a high rate of interest, or might even reject the loan application. Lenders prefer customers with zero defaults over a past 12 months credit history.
Your lender decides you rate of interest depending on credit history, income, loan amount, loan period, and other factors. You repay your loan amount over the loan tenure by dividing the interest per annum over the period of your loan payable monthly. A portion of each payment goes towards repaying the borrowed sum, and another goes towards paying off the interest charge.
Here's a list essential documents for a personal loan. For a complete list with details, click here.
