There are several lenders in the market offering instant cash loans to employed and self-employed people, and each of them has varying eligibility criteria that must be met.

Instant cash loans are unsecured loans with flexible repayment terms. They work like personal loans, with perhaps the only difference being the “instant” setting associated with them.

There are several lenders in the market offering instant cash loans to employed and self-employed people, and each of them has varying eligibility criteria that must be met. In this article, we look at some parameters that influence your eligibility for an instant cash loan in India.

Here is your own instant cash loan eligibility checklist.

Age: Most lenders require individuals to be at least 23 years old to be eligible. The maximum age allowed by lenders is usually 55 years old.

Income: Lenders require you to meet a minimum income test to qualify for an instant cash loan. With a good number of Fintech lenders entering the unsecured lending space, the minimum income requirement has dropped significantly over the past year. As a potential loan seeker, you can avail an instant cash loan with an income of at least Rs 15,000 per month.

Professional experience: The number of years you have been employed is also an important influencing factor. Private and public banks that offer personal loans generally require individuals to have at least 2 years of work experience to be eligible. Fintech lenders, on the other hand, have embraced high-end technology, assessing applicants on a wide range of metrics and determining their overall repayment capacity through a broader lens of criteria. As such, Fintechs do not strictly require individuals to have a pre-determined eligibility criteria with regards to their work experience. If you decide to apply for an instant cash loan from a Fintech lender, you can become eligible even with only 6 months of work experience.

Document checklist: As with every loan process, you will need to submit a set of documents to the lender in order to begin processing your loan application. Let’s look at the list of required documents:

# PAN Map

# Aadhar Card

# Salary slips/pay slip for the last 3 months

# Bank statements for the last 3 months

# Check the leave of your salary account

# Photographs

Most Fintech lenders and P2P lending platforms allow you to upload your documents, either through their mobile app or website. Bank statements can be downloaded via a secure web channel by logging in with your internet banking credentials.

Credit score: Credit score is an extremely important eligibility parameter that lenders look at. While most major banks have a minimum required credit score of 700-750, Fintech and P2P lenders have a looser test on this front. You can avail an instant cash loan from 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. In fact, 35% of your credit score is influenced by your repayment history, a parameter that takes into account every repayment made on existing credit instruments that you have taken advantage of. Private banks, especially the popular ones, are rigid in their assessment while Fintech lenders are quite lenient in determining an individual’s eligibility based on their repayment history. Defaults are not accepted at any cost, while a few cases of late payment are allowed if other parameters are met.

(By Aditya Kumar, Founder and CEO Qbera.com)

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