What are the factors that can affect ₹ 3 Lakh Personal Loan EMI?

 If you want to secure a ₹ 3 lakh personal loan it is important to understand the various elements that influence the equated monthly instalments (EMIs). Some of the factors play an important role in the repayment structure and overall financial commitment associated with such a loan. By exploring these influential factors, borrowers can gain insights into how the EMI amount is calculated and how they can strategically manage their financial resources for smoother repayment. Here we will tell you about the impact on EMI for a ₹ 3 lakh personal loan.

3 Lakh Personal Loan

                                                                           3 Lakh Personal loan 

Factors That Influence 3 Lakh Personal Loan EMI

Below are some of the factors that influence the 3 lakh personal loan EMI.

Credit Score

Your credit score is based on your credit history, which includes loan repayments and credit card bill payments. Since Personal Loans don't require collateral, your credit score has the most impact on your eligibility. You can have a decent credit score of 750 and above if you repay the loan on time. This shows lenders your commitment towards timely repayment. In contrast, poor financial management leads to a low credit score, which lenders consider unacceptable. However, timely EMI and credit card bill repayment will improve your credit score.

Age

In order to determine your ability to repay loans, lenders must also know your age. Whether you are a salaried employee or a self-employed individual will determine the age qualification for the personal loan. Typically, self-employed people between the age of 25 and 60 and salaried workers between the ages of 21 and 55 are seen as the best prospects for personal loans. Also, it is assumed by lenders that if the borrower is young they can easily repay the loan as they might have a regular income.

Employment Status

When evaluating your loan application, the lender may also consider your job status and the reputation of your company. The probability of the lender granting your personal loan is increased if you work for a reputable company for a considerable amount of time. Lenders typically choose applicants who have been working for the same company for two years or more and have a stable salary. If you frequently change jobs, lenders can view this behaviour as an indication of risk and may disqualify you from getting the loan.

Debt To Income Ratio

Lenders assess your monthly income along with your credit score to determine whether it is sufficient for you to make loan payments on time. To be qualified for a personal loan, the majority of lenders normally ask you to have a minimum annual income of ₹25,000 in hand. Additionally, if your debt-to-income ratio is lesser, loans are approved more quickly. This means that your monthly income should be more than your monthly expenses, including any debts you may have.

Relation With Lender

Choosing a loan from the previous lender may favour you more as compared to the new lender. Furthermore, the lender may provide new loans at lower interest rates if you have previously obtained and repaid loans from them. If you've been a customer for a while, you might be in a position to bargain for better interest rates and bigger loan amounts. The lender may, in good faith, accept your terms and grant the loan due to the previously built trust.

Conclusion

Understanding the factors that influence the ₹ 3 lakh personal loan EMI is important for borrowers seeking a great repayment plan and managing their EMIs better. Factors such as interest rates, loan tenure, and processing fees significantly influence the monthly instalments. With this knowledge, borrowers can strategically plan their finances. LoanTap, known for its seamless processes and competitive interest rates, offers a hassle-free experience for individuals seeking a ₹ 3 lakh personal loan, ensuring a smooth journey towards fulfilling financial needs.

 Original source:- What are the factors that can affect ₹ 3 Lakh Personal Loan EMI?

 

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