Every year, India hosts Republic Day celebrations with pomp and grandeur. The day is marked by spectacular parades at the NCR, followed by hoisting of the national flag across several parts of the nation. India will celebrate it’s 71st Republic day this year and most of us are supremely excited about the event. After all, it is an iconic day celebrating our independence from the atrocities of the British rule. Sadly, despite the many achievements of our country, we as citizens still lack the required awareness about financial matters. So, as Republic day sets a vital milestone in Indian independence, it is time for you to bridge knowledge gaps by familiarizing yourself with the latest financial products. A digital personal loan is one such product, and if used judiciously, it’ll help you break free from the biggest deterrent of financial freedom: debt. If you’re wondering how a new loan will help tackle existing debt issues, here’s everything you need to know.
What is a Digital Personal Loan?
As evident from the name, digital personal loans are financing options that can be availed online. You can use your Smartphone, laptop, or any other digital device to apply for this loan. The defining feature of these digital loans is the fact that they are approved and disbursed in a relatively shorter time when compared to conventional lending institutions like banks. The best part: they are collateral-free. So, unlike secured financing options you do not need to pledge any asset to avail the option.
Fintechs like Qbera offer digital loans ranging from Rs 1 lakh to 15 lakhs with flexible tenures of 1 to 6 years.
Who is Eligible for A Digital Personal Loan?
If you’re a permanent Indian citizen, you can be eligible for a digital personal loan upon meeting the following eligibility parameters:
- Your age needs to be between 23 and 57.
- Your monthly income should be at least Rs 20,000.
- You should have a minimum credit score of 600.
While these are the basic eligibility parameters, they can vary depending on the lending institution you choose. Note that Financial companies give more preference to borrowers if their debt to income ratio is below 35%. Your interest rate might also be reduced if your credit score is on the higher end.
How Can I Solve Debt Problems With a Digital Personal Loan?
While this might come as a surprise to many, you can solve your debt issues with a new personal loan. This is usually done via debt consolidation, where you consolidate your existing debts into a single, low-interest debt.
You can use a personal loan to consolidate debts from secured loans, credit cards, and any other existing financing plan you availed in the past. Since the interest rate on this personal loan will be lower than the interest rates of your existing debts, your monthly installments too will now be lower. The installment amount can also be reduced by increasing the tenure of the loan.
With low monthly installments and just one installment to tend to, you’ll have more flexibility in terms of managing and streamlining your budget.
So, wait no longer and free your finances from debt, with a low-interest, debt consolidation personal loan.