Instant Loans are loans that reach your account almost instantly. They work very differently from the loans that traditional banking institutions have to offer. In the case of traditional banks, loan amounts take at least 5-7 business to reach the accounts of approved borrowers. These instant loans are nowadays mostly offered by Fintech lending companies and P2P lending platforms – these type of lenders have gone on to become extremely popular in the market today as they offer convenient, easy and super-quick personal loans mostly to salaried individuals.
In order to get an instant personal loan in India, you must satisfy certain eligibility criteria that lenders command. In this article, we look at the eligibility checklist that will enable you to qualify for a personal loan in India from a Fintech lender.
Instant Cash Loan in India – Eligibility Checklist
Let’s go through a list of various eligibility parameters that you will be required to meet if you are to become eligible for the instant loan credit product:
Your age: The first parameter that lenders will look at is your age. A minimum age of 23 years if required to qualify for personal loans in India from Fintech lenders. The minimum age is an essential parameter because lenders require you to have a minimum period of work experience before you can qualify for a personal loan. The maximum age to qualify for instant cash loans in India is 55 years.
Employment: You need to have a regular source of income on a monthly basis if you wish to qualify for credit. Fintech lenders mostly offer instant loans to salaried individuals with a minimum monthly income of INR 18,000 per month (monthly net take-home income).
Credit score: The credit score is an extremely crucial parameter that gives lenders an idea of how good you’ve been with managing your credit in the past. Most Fintech lenders demand a minimum credit score of 600 to apply for an instant loan, but private banks ask for a credit score of at least 750 to qualify for unsecured credit. The credit score by itself is influenced by a bunch of important parameters, notably your repayment history, length of credit history, and your total outstanding debt in relation with your income. A bad credit score will almost often lead to rejection of your loan application. Making regular and timely repayments on your existing loans and credit cards will keep your credit score high and help you improve your approval chances.
Employer Categorization: Banks and lending institutions conduct risk-profiling for organizations, and accordingly rate them. This means that individuals working with companies categorized as “A” or “B” often get approved at a lower rate of interest, as working with a reputed employer translates to better stability (the company wouldn’t go bankrupt and you can keep making your monthly repayments as long as your tenure lasts). Also large companies offer benefits such as insurance, further benefiting lenders offering unsecured credit to individuals. Fintech lenders, however, offer instant loans even to those individuals who work in unlisted or uncategorized companies, and even to those companies who have a rating of “C” or “D”.
So, if you are looking for an instant loan in India, it is advisable to apply with a Fintech lender, as doing so will not only help you get your loan amount more quickly, but will also help you avoid rejection and improve your approval chances.