A personal loan is one of the most prudent credit options you must opt for to meet your unexpected or immediate fund shortages. Owing to features like easy application, quick approval, no security requirement, limited documentation requirement and no restriction on end usage of loan proceeds except used for any speculative purpose, make this loan an important option during cash crunch. 

Despite this, there’s a possibility that your personal loan application might be turned down. Common reasons why any lender might turn down your loan application involve poor credit profile and score, wrong details, low income and more. As an outcome, it becomes crucial to use an online personal loan calculator before placing an application for a loan. 

Discussed here are some crucial benefits of using an online personal loan eligibility calculator – 

Helps compute an EMI as per your budget

Repayment is a vital borrowing aspect, and hence you must pay heed to your personal loan EMI before you apply for a loan. The calculator computes the overall monthly outgo once you input the asked details i.e., personal loan interest rate, tenure, and loan proceeds. So, a personal loan eligibility calculator simplifies your repayment plan by allowing you to compute your personal loan EMIs on differing combination figures to choose the deal that best matches your budget.  

Helps to make comparisons to figure out the prudent loan deal as per your credit profile and need

The prudent personal loan deal is the one that is cost-effective and affordable. It simply infers that your personal loan EMIs are by nature pocket-friendly, and the interest constituent is affordable. Such loan deals are rare in nature, and you must ensure to compare loan offers by distinct lenders to know the best one. By using an online calculator, you can assess accurately the difference and figure out the deal that complements your preference and capabilities. Note that when shortlisting the loan deal based on the offered rate, you must even factor in the overall borrowing cost. This involves any additional fees that may be charged on the loan.

Protects your credit profile and future borrowing potential 

Undisciplined borrowing can negatively impact your credit score and lead to lasting damage to your credit profile. This usually happens when you do not plan your loan or borrow more than your repayment capacity. By using the personal loan eligibility calculator, you simply can avoid such issues. 

As you are allowed to input your preferred loan tenure, you can easily evaluate the borrowing cost over the chosen time period. In case it is not feasible, then you can adjust the loan proceeds and terms as per your repayment potential. Note that, a good credit score is important as it helps you qualify for future loans. So, by zeroing in on the prudent loan figures for personal loan, you also tend to safeguard your score from any negative impact. 

ConclusionAn online personal loan eligibility calculator is an important tool you must ensure to use before you opt for any personal loan deal. Instant and error-free outcomes simplify your planning and assist you make an informed decision about a regular or instant personal loan. Additionally, the instrument saves considerable time and effort that you would have wasted on calculating the EMI manually.