A personal loan is a type of unsecured loan that can be used for various purposes, such as home renovation, medical emergencies, wedding expenses, or debt consolidation. Unlike secured loans, personal loans don’t require collateral, and borrowers can use the funds for any purpose they wish. Personal loans usually come with fixed interest rates, and borrowers can repay the loan over a predetermined period, ranging from a few months to a few years.
An instant personal loan, as the name suggests, is a type of personal loan that can be approved and disbursed quickly, sometimes within a few hours or even minutes. Instant personal loans are designed to meet urgent financial needs, and they are usually offered by digital lenders or fintech companies that use advanced technology to speed up the loan approval and disbursement process.
Instant personal loans are ideal for people who need quick access to cash but don’t want to go through the lengthy and complicated process of traditional loans. With instant personal loans, borrowers can apply for a loan online, provide the necessary documents and information, and receive the loan amount in their bank account within a short time.
What are the Personal Loan Eligibility Criteria
Before applying for an instant personal loan or any other type of personal loan, it’s essential to check personal loan eligibility to avoid rejection or higher interest rates. Each lender has its own eligibility criteria, but most lenders consider the following factors:
Age: You must be at least 21 years old and not more than 60 years old (or retirement age) to apply for a personal loan.
Income: You must have a regular source of income, such as salary, business income, or rental income. The minimum income requirement varies from lender to lender, but most lenders require a minimum monthly income of Rs. 15,000 to Rs. 25,000.
Credit Score: Your credit score is a measure of your creditworthiness, and it reflects your credit history, including your repayment history, credit utilization, credit inquiries, and credit mix. Most lenders require a minimum credit score of 650 to 750 for personal loan approval.
Employment Status: You must be a salaried employee or a self-employed professional/business owner to apply for a personal loan. Most lenders require at least six months of employment or business continuity.
Other Factors: Some lenders may also consider other factors such as the borrower’s location, education, debt-to-income ratio, and existing financial obligations.
To check your personal loan eligibility, you can use the online eligibility calculators provided by most lenders. These calculators ask for your basic information, such as age, income, and credit score, and give you an estimate of your loan eligibility and the interest rate you may be offered.
How to Apply for an Instant Personal Loan?
If you meet the personal loan eligibility criteria, you can apply for an instant personal loan online. Here are the steps involved:
Compare Lenders: Before applying for an instant personal loan, compare the interest rates, fees, and terms offered by various lenders to choose the best deal. You can use online loan comparison websites or aggregator platforms to compare multiple lenders at once.
Fill out the Application Form: Once you have chosen the lender, visit their website or mobile app and fill out the online application form. Provide accurate information about yourself, such as your name, address, PAN card number, income, employment details, and bank account details.
Also Read: Everything You Need to Know About Business Loan EMI Calculator
Upload Documents: After submitting the application form, you may be asked to upload the necessary documents, such as identity proof, address proof, income proof, and bank statements.
Conclusion
In conclusion, instant personal loans can be a great option for people who need quick access to cash for various purposes. However, before applying for an instant personal loan, it’s essential to check your eligibility and compare the offers from multiple lenders to choose the best deal. Keep in mind that instant personal loans usually come with higher interest rates and fees compared to traditional loans, so it’s important to read the terms and conditions carefully and borrow only what you need and can afford to repay. By being a responsible borrower and using instant personal loans wisely, you can meet your financial needs without putting yourself in a debt trap.
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