All of us require a loan – whether for personal or business purposes – at some time in our lives. We may want to expand our families or our businesses, or wish to finance our children’s education and weddings or simply purchase expensive machinery for our factory – all of this will require the taking of a loan to fulfil the shortfall in funds.
However, it is one thing to look for a loan and quite another to purchase the right one. Today, the sheer variety of loan products in the UAE can make choosing the right loan that suits our budgets and requirements, a daunting task.
People are completely baffled by the calculations of monthly EMIs vis-à-vis the interest and principal amount to be repaid. Hence, to make the entire process easier, premier banks and financial institutions include not just detailed information about each of their loan products, they also include a handy tool known as the ‘loan eligibility calculator’ on their websites.
How does it work?
The loan eligibility calculator is a tool embedded in the website of banks and financial institutions. It allows for real time computation of the applicant’s eligibility to get a loan, and also how much principal amount he or she will get. Besides, it also helps the applicant calculate how much the monthly outgoing will be based on preferred rate of interest and tenure.
A good loan eligibility calculator will also help the applicant make the right choice by taking into account the reason why the person requires a loan (whether to fund their child’s wedding or pay for emergency expenses, to name just two factors), their salary range in Dirhams and the preferred tenure (in months), while also giving the option of choosing differently for car loans. After the required information is fed in, the tool computes the monthly outgoing in two scenarios, with or without salary transfer to the lending institution.
This makes the process of availing a loan extremely easy. The applicant can immediately see whether they are eligible to get a loan from their preferred lending institution, how much money they can get and how much they will have to pay by way of EMIs. Not only this, the tool allows the applicant to seek more details or simply apply for a loan product online.
The biggest advantage of using the loan eligibility calculator is that the information the applicant gets is absolutely current. Normally, a person has to make several trips to various lending institutions to find out their prevalent rates of interest and then make individual calculations before arriving at a decision. In sharp contrast, the online calculator tool computes the same information at a fraction of the time.