What Determines Your Personal Loan Amount?
Personal Loans are a popular financial product that can be used for different purposes, such as debt consolidation, home renovation, medical expenses or any other unexpected expenses. One of the most important factors that determine your Personal Loan eligibility and terms is the loan amount. Generally, lenders calculate the amount using Multiplier Method or EMI/NMI Ratio. However, the specific method used by lenders to determine the loan amount can vary widely and depend on several factors such as credit score, income, employment status and existing debts. Understanding how your personal loan amount is decided can help you make an informed decision and get the best loan offer for your needs and financial situation. What is Multiplier Method? The multiplier method is a common approach used by lenders to determine the loan amount that a borrower can qualify for based on their income. Lenders use a method to calculate Personal Loan amounts based on a predetermined multiple of the a