The search for instant cash loans has ended with the advent of personal loans in the lending market. Personal loans are unsecured loans that are extended to an applicant by lending institutions to tide over financial shortfalls. Being unsecured means that there is no asset pledged with the financial institution. This, therefore, puts these loans in the high-risk category which further translates to stringent eligibility criteria and high interest rates. Banks prefer being safe and only gives out personal loans to individuals with excellent CIBIL score. But NBFCs and Fintech companies do give weightage to other socio-economic trends of the individual while deciding on the application.
Being quite flexible, unlike a home or vehicle loan, these instant cash loans can be used to fund a wide variety of needs. Not getting an educational loan for an unconventional course, no problem, you can take a personal loan. Similarly, to meet wedding expenses, to renovate the house, to upgrade your home appliances, to foot unexpected medical bills, to buy a second-hand car, to consolidate debts, to plan an exotic vacation- there are so many uses that it can be put to. These cash loans from Fintech’s are instant- as their name goes. Within a day or two, you can expect to receive the amount, provided your documents are in order. They are also truly digital with the complete process from application to document submission to disbursal being carried out online with minimal physical documents.
Before applying, do check out their eligibility criteria as most have their own checklists. However, a few eligibility criteria are constant-
- Age: It is considered better to give a loan to a younger person, who can make excellent use of the long tenure offered than an older individual who doesn’t have many years left. The preferred age group is 23-55 and tenure ranges from as less as 6 months to 5 years.
- Salaried: Owing to the fact that no collateral is pledged, the work status of the applicant is quite important. Salary and bank statements are to be submitted. If the applicant is self- employed then, business continuity documents and income tax returns filings are to be submitted.
- Net Salary: Your monthly salary or Profit is another important aspect. There is a minimum required limit which varies from institution to institution and also from city to city. Metropolitan and cosmopolitan cities will look for higher net take home as compared to small towns.
- CIBIL score: the onus to pay-back the borrowed amount is on the applicant and in the absence of any collateral, the institutions place high emphasis on the creditworthiness of the applicant as determined by the CIBIL score. A decent score ensures that the application is not rejected and also some power with the applicant while determining the rate of interest.
Some Fintech’s like Qbera do consider marginally low CIBIL scores and low- income groups as well. So, with the wide range of options available, carefully consider the offers made especially the tenure and rate of interest charged before opting for the instant cash loan for your personal cash needs.