What Is A Loan Eligibility Checker?

Loans are essential for several reasons when it comes to purchasing a new house or car, travelling abroad, pursuing higher education among many others. To avail a loan, a set of conditions must be met by the loan applicant so that the lender is assured their money is in safe hands. The components of a loan include the borrowed amount, the rate of interest and the tenure for which the loan amount is borrowed. It is the primary service that banks offer to its customers.

A Loan Eligibility Checker is a tool for loan applicants, used to check their eligibility without visiting the bank. It calculates the eligibility in many types of loans namely education, home and personal investment. A Loan Eligibility Checker uses parameters such as age limit of the individual, work experience, minimum salary, etc. to generate a score for a particular type of loan. The score tells the loan applicant about the minimum requirements the bank needs to issue a loan. First, to understand the functions of the Loan Eligibility Checker, the term ‘Eligibility’ must be explained.

What is the Eligibility to Avail a Loan in the UK?

Eligibility refers to the bank’s likeliness to approve a loan depending on the credit information provided by the loan applicant. This information should match the bank’s requirements. The eligibility rating of the loan applicant will be calculated on the following, as listed below.

  • Money owed currently on easy credit card or mortgages.

  • Regular and timely payments.

  • Number of credit accounts and their period of use.

  • Credit limits and amount of usage.

  • Voter ID.

  • Financial Associates.

  • Court Judgements and other publicly available information.

The criteria provided by the bank to get a loan application approved can vary from person to person, depending on the following below.

  • A recent application for credit.

  • The outstanding balance on different credit accounts.

  • Missed payments.

  • Full-time employment details.

  • Salary details.

How to use a Loan Eligibility Checker in the UK?

Getting a head start on loans can be beneficial, especially during a time crunch. Input the details required into the Loan Eligibility Checker such as your credit score, loan amount, etc. to calculate a rough estimate of your eligibility. While comparing data, personal and financial information will be required, including the credit information to correspond to the specified lender’s criteria.

To analyse which type of loan to choose, inputs such as duration of borrowing and the amount to be borrowed are essential to provide an accurate result. The eligibility rating changes over time, with new Loan Eligibility Checker softwares and online calculators it is now possible to compare loan offers in real-time.

What are the Benefits of using a Loan Eligibility Checker?

The most significant benefits of using a Loan Eligibility Checker are as listed below.

Saving Time

With the help of suitable filters pertaining to the UK loan policy, it is possible to narrow down the exact requirements and compare deals according to financial situations and the loan amount required. Rather than following the conventional way of a loan application to find eligibility ratings, using a Loan Eligibility Checker saves time and decisions can be made at a much faster rate.

Protecting your Credit Score

If multiple loans are applied for very frequently in a short time frame, the credit score can be lowered significantly. This will risk the chance of a quick loan approval. By using the Loan Eligibility Checker, knowing the loan amount that the applicant is eligible for becomes easier and fewer applications need to be made, thus lowering the chance of a bad credit report and increasing the possibility of loan approval.

What are the Documents required to Avail a Loan?

When applying for a loan, the lender will check the credibility of the loan applicant. Each bank has their own specific rules and regulations which need to be followed when approving a loan. This credibility of the customer is checked by going through certain documents to decide if the applicant can be trusted with the amount of money loaned. These documents are listed below.

  • Type of Income Source (Self-Employed or Employed).
  • Application form along with a photograph of the applicant.
  • Identity proof such as driving license, birth certificate, etc.
  • Proof of residence of current address as well as addresses for the past 3 years.
  • Bank details including the account number and sort code.
  • Details of the employer such as name, address and phone number.
  • The latest salary slip.
  • Bank statements of the last 6 months.
  • Processing Fees Cheque.

With the availability of the above documents, the lender can check if a certain loan amount can be approved in the name of the applicant. Apart from these documents, the applicant must also have an excellent credit score and maintain an up to date credit record. When applying for a loan, the age of the applicant must be at least 18. However, when applying for a loan with a large amount, the minimum age requirement is 21 years. Using a Loan Eligibility Checker online and maintaining up to date financial documents can increase your chances of loan approval.

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