Impressive technological advancements in the financial services sector have made instant cash loans a reality. Cash loans are nothing but instant personal loans that are being made available mostly by Fintech companies. Personal loans are quite popular owing to the ease of availability, the quick processing, and the absence of any collateral’s. Being unsecured loans, these fall into the slightly high-risk category, prompting lenders to take a critical look at various factors while considering your application for the same. The eligibility criteria vary from institution to institution and it is advisable to check out this list of basic suitability before putting in your loan application form.
There are, however, some criteria that most institutions look for while evaluating instant cash loan applications.
Here is your instant loan eligibility checklist:
- The Age of the borrower: This is an important factor as the age determines as to how a person can best utilize the long loan tenure allowed. Also, a longer working life ensures that the borrower will be employed and, in a position to repay the loan. Most lenders require applicants to have a minimum age of 23 years.
- The credit score: The Credit Score gives an insight to the lender on the credibility of the borrower. A clean repayment record that shows timely payments helps sustain the lender’s faith in an applicant making timely payments and lowers chances of loan defaults. Qbera considers marginally lower scores as various other parameters including an applicant’s social standing are taken into account while evaluating a cash loan Banks, on the other hand, insist on a score of 750 and above.
- The employment and financial status: The financial status of the borrower is considered. The stability in the current company and positions helps instill faith in the lender that there will be consistent income and so the borrower can make regular payments. The future financial growth is also considered. If the borrower is employed with a categorized top-notch company and shows immense growth promise, it is considered as a positive point. The net take-home income is important. Banks usually look at those with a minimum take home of Rs 25000 and above, but Qbera considers applicants with a net monthly income of Rs 18000 as well. Personal profile: Your overall profile that includes your employment status, educational qualifications, social leanings are considered to assess your creditworthiness.
- Income to Debt Ratio: As your income is the sole factor on which the repayment capacity is decided, the amount of debt you owe is a crucial aspect that is also considered. All existing liabilities such as home and car loans, credit card debts, and other unsecured loan accounts are all considered to ascertain if you will be able to manage the repayment burden. Banks look for a highly relaxed income to debt ratio of 20-30% while Fintechs do consider applicants with a ratio of 40%-50% as well.
- Guarantor to an existing loan: if you are a guarantor to an existing loan, lenders hold you responsible for that amount. This additional loan too is considered while deciding on your loan application. If the actual borrower defaults, then the liability rests on you so do consider all such liabilities before applying for an instant cash loan.
Instant personal loans are easy access to money, however, owing to its unsecured nature the eligibility criteria as strictly followed. Failure to meet the standards set can lead to rejection of your loan application and further have a detrimental effect on the credit score as well. With the arrival of Fintechs like Qbera in the market, eligibility norms have seen slight leniency and relaxation.