How do banks calculate your personal loan eligibility? Learn about the basic calculations banks use to determine whether you are eligible for a personal loan or not.
How Your Personal Loan Eligibility is Determined
All banks, before they give you any kind of a loan, check whether you have the capacity to repay – after which they will figure out if you are eligible for their loan or not.
So, how do they decide on your loan eligibility? There are several criteria they consider, but most importantly they use some basic calculations to determine whether you have the financial capability to repay the loan. You can also check your personal loan eligibility by making use of personal loan eligibility calculators which are available for free online.