How to Determine Your Personal Loan Requirement?

by Anujit Bhattachaarya Finance

Most of them find themselves in a fix when deciding the Loan amount. You neither want to run short on funds nor be burdened by the Loan amount you cannot afford to repay. Here are tips to help you decide the Loan amount before applying:

Know Your Objective

The most important question before applying for a Loan is why you need funds. Whatever the amount it may cost, understand your purpose. List down the expenses you will then require for meeting that objective. It could be anything, ranging from weddings to travel to education.

Grasp Your Affordability

Once you decide the purpose, check if you can afford it. A Loan calculator can be beneficial here. It estimates the Equated Monthly Instalment you are liable to repay. Get a grasp on your finances. See if you can repay the EMI amount every month. If you feel the EMI amount is beyond your budget, consider changing the Loan parameters. For example, you can reduce the Loan amount or increase your tenure to adjust the EMIs.

The Loan calculator is beneficial as the results are accurate. It also allows you to make changes and calculate the new EMI in a few clicks.

Check Your Eligibility

Personal Loan eligibility significantly influences the Loan amount. Hence, it is best to check your eligibility before making an application. Factors like your monthly income, current financial obligations, and credit score are considered here. Check the bank website or contact their customer representative to learn about their Emergency Loan eligibility criteria. Make sure that you tick all checkboxes for a seamless Loan approval.

Remember that a stronger profile also allows you to attain better repayment terms. Hence, keep up with a satisfactory credit score and solid financial profile.

Plan Your Repayment

Planning your repayment is necessary to ensure you can repay the Loan amount without any hassles and defaults. Since you know the EMIs to pay monthly, plan your finances accordingly. Make a budget and follow it strictly. You do not want to have irregular payments or default. Periodic payments strain your finances and negatively impact your credit score.

Use can easily access a Loan calculator on the bank website. Feed in the key parameters, calculate your EMIs, and apply for a Loan today!