One of the best features of a personal loan is that it’s a collateral-free loan which means a person does not require providing anything as security. And this is among the reasons why people now days going more and more for a personal loan. As one side this feature facilitates the borrowers whereas on the other this is a high-risk factor for a lender. Because of this usually, the interest rates are higher on personal loans than the secured loan. But along with being an unsecured loan it is also a multipurpose loan and considered as the ideal choice for immediate fund requirements. For these reasons, it is important to not get a rejection on a personal loan application.

This is the reason why it is always good to know the eligibility criteria and the factors that affect the loan application to make sure that the loan doesn’t get rejected. As each time the loan application rejected it may adversely affect the credit score. And if the credit score reduces, it will be difficult to get a loan or the loan will be of the high-interest rate. There are many online eligibility calculators on which a person can get to know his/her loan eligibility. One of the most simple in use calculators is SBI personal loan eligibility calculator. With the help of this online tool, a person can easily check whether he/she is eligible for an available personal loan or not.   

Steps to use the online SBI Personal Loan Eligibility Calculator

SBI personal loans are among the best options available in the market. It has a wide range of loan schemes like SBI Saral Personal Loan, SBI Xpress Credit Personal Loan, SBI Pension Loan, etc. The schemes are designed to meet the diverse needs of the customers. SBI Personal Loan Eligibility Calculator is the best way to know the eligibility for different SBI Personal Loan products. A user requires few basic details to know his/her personal loan eligibility with the SBI calculator. 

Here are the simple how-to-use steps of SBI Personal Loan Eligibility calculator:

• Step 1: Visit on the corporate website of SBI. 
• Step 2: Choose the purpose of the loan from the dropdown.
• Step 3: Click on Yes if you have an existing relationship with the bank. If you choose the option yes, then 

• Select the type of relationship from the dropdown.
• Enter the account number and the contact number and you will get to know the eligibility in a short period. 

Or if you don’t have the existing relationship with the bank then click on “No”. Then enter the:

• Personal details like date of birth, etc.
• Income details such as employment nature, organization type, etc.
• Workplace details.
• Contact details.
• Enter the given code in the box and submit the details.
• Soon you will get to know whether your personal loan eligibility. 

Factors affecting the Loan Application

Apart from the eligibility criteria for a personal loan, certain factors affect the loan application mainly the minimum salary expectation and the personal loan amount eligibility. They are:

• Location: The place where an applicant stay plays a crucial role in the loan application. This determines the minimum salary requirement to be eligible for a personal loan. Generally, the minimum salary is higher in the cities and more so in the case of metropolitan cities likes Mumbai.

• Monthly Income: High loan amount can be availed if the income is high. Income reflects the repayment capability of the applicant.

• House Ownership: Whether an applicant lives in a self-owned home or rental property also plays a major role in determining the loan amount. The reason being if an applicant stays in a rental property reduces his/her disposable income, which simultaneously reduces the repayment capacity.

• Company of employment: If one is working in a reputed organization for at least a year act as an added advantage regarding the personal loan application. As it somewhere indicates that an applicant has a stable job. The good the rating of the company the better the interest rate on a personal loan can be negotiated.

• Existing Loan: If an applicant already has an existing credit impact the offered loan amount and the interest rate.

• Credit history: The credit score is calculated based on the credit history which makes it very important. It is a primary factor upon which the loan amount, interest rate and tenure depend depends. If there is any discrepancy in credit history, it increases the chances of loan application rejection.

Every personal loan lender has different eligibility criteria but some factors remain the same. An applicant should always check it with the lender beforehand and make sure that he/she does not fall short of anything. If in case they do, then there are high chances of the loan application rejection.