There are several lenders in the market offering instant cash loans to salaried and self-employed individuals, and each of them have varied eligibility criteria that need to be met.
Instant cash loans are unsecured loans that come with flexible repayment tenures. They work just like personal loans, with perhaps the only difference being the ‘instant’ parameter associated with them.
There are several lenders in the market offering instant cash loans to salaried and self-employed individuals, and each of them have varied eligibility criteria that need to be met. In this article, we look at certain parameters that influence your eligibility for an instant cash loan in India.
Here is your very own instant cash loan eligibility checklist.
Age: Most lenders require individuals to be at least 23-year old for them to be eligible. The maximum age that lenders permit is usually 55 years.
Income: Lenders require you to meet a minimum income criterion in order to qualify for an instant cash loan. With a good number of Fintech lenders entering the unsecured loan space, the minimum income criterion has fallen significantly in the last year or so. As a potential loan applicant, you can qualify for an instant cash loan with an income of at least Rs 15,000 per month.
Employment experience: The number of years you’ve been employed is also a significant influencer. Private and state-run banks that offer personal loans usually require individuals to have at least 2 years of employment experience in order for them to be eligible. Fintech lenders, on the other hand, have adopted high-end technology, assessing applicants on a wide range of parameters and determining their overall repayment capability through a wider criteria prism. As such, Fintechs don’t st0rictly require individuals to have a pre-determined eligibility criterion as far as their employment experience is concerned. If you’re deciding to apply for an instant cash loan from a Fintech lender, you can become eligible even with an employment experience spanning just 6 months.
Document Checklist: As is contiguous with every loan process, you will be required to submit a set of documents to the lender in order to begin processing your loan application. Let’s look at the list of documents required:
# PAN Card
# Aadhaar Card
# Salary statements/payslips for the last 3 months
# Bank statements for the last 3 months
# Cheque leaves from your salary account
Most Fintech lenders and P2P lending platforms allow you to upload your documents, either through their mobile app or website. Bank statements can be uploaded through a secure web channel by logging in with your internet banking credentials.
Credit score: The credit score is an extremely important eligibility parameter that lenders look at. While most top banks have a minimum credit score requirement of 700-750, Fintech and P2P lenders have a more relaxed criterion on this front. You can qualify for an instant cash loan with a Fintech lender even with a credit score of 600.
Repayment history: Your repayment history is as important as your credit score, if not more. As a matter of fact, 35% of your credit score is influenced by your repayment history, a parameter that accounts for every single repayment made on existing credit instruments that you’ve availed. Private banks, especially the popular ones, are rigid in their evaluation whereas Fintech lenders are fairly lenient in determining an individual’s eligibility based on his/her repayment history. Defaults aren’t entertained at any cost, while a few instances of delayed payments are allowed if other parameters are met.
(By Aditya Kumar, Founder & CEO Qbera.com)