An online loan has become one of the easier options for borrowers to get quick access to funds. If you need funds due to some emergencies, you don’t have to worry about it because you know that you can easily get an instant cash loan online. Since banks aren’t asking for any security or asset from you to avail a personal loan, the interest rates could be high. Nonetheless, the interest rate of personal loans differs from bank to bank.
Even though getting a personal loan through a quick loan app is easy, the approval for your loan application is what is important in the whole process. The amount that you can request for your cash loan totally depends on how much you are earning and your credit score. Income is the most important thing to decide when taking a loan. That is the only trust factor for lenders to believe that you will pay back the loan in EMI.
If your income is higher, then you will get a high amount of loan. With a low credit score, either your application won’t be approved, or you will end up getting a lower amount of loan. So, having a good CIBIL score and a high income is always important to get a higher loan and immediate approval of your easy EMI loan.
Multiplier method
Individuals can get a loan of 10 to 24 times their net monthly income. Banks won’t be giving loans more than that. The CIBIL score will also be considered in providing the loan. If you have 40000 Rs as monthly income, then you may get, approximately, 960000 Rs as the highest instant cash loan possible.
Net monthly income ratio
If the individual has any existing loan going on, then the lender will check the EMI/NMI ratio. The total EMI should not go beyond 50% of the borrower’s income. You can go for a higher tenure to get lower EMI to get higher chances of a pay later loan approval.
Eligibility calculator
If you want to know the eligibility loan amount, you don’t have to visit a bank. Many banks have created their own eligibility personal loan calculator on their website. You can give the mandatory details by yourself as the user interface is friendly. You can check by yourself how much loan is required and how much you can take according to the chosen tenure. The eligibility calculator check will give you a clear vision of how much EMI you should pay for the chosen tenure.
Conclusion:
Getting access to apps that provide instant personal loans is easy, but the process involved in getting approval for your loan application is quite difficult. Knowing all the information mentioned in the above will be useful for any loan applicant. Even if the loan is small or high, everyone should be aware of the eligibility criteria and structure. Calculate your EMI and then apply for an easy EMI loan for instant approval.