If you’re looking for a quick source of funds, personal loans are your best bet! Whether you want to fund your higher education, meet a medical emergency, or pay for your impending wedding- this financing option can address all your financial issues in an instant. But what are the features of a personal loan? What are the eligibility parameters? Also, how exactly do you avoid the possibility of rejection? Well, that’s exactly what we’ll get to know over the next few sections.
Features at A Glance
Instant Personal loans are quick, easily available and much cheaper than credit cards. But these aren’t the only features this financing option offers. So, in case you’re planning to apply for this loan, here are a couple of facts you should consider.
Collateral Free– Perhaps the biggest benefit of personal loan is the fact that it doesn’t require any collateral. This means, you won’t have to pledge your assets or property to get your loan application approved. The process will be much simpler and hassle-free.
Less Documentation– While personal loans from banks still require plenty of documents, when you choose a digital lender, the documentation process is relatively simple. A copy of your aadhaar card, pan card, bank statements and salary receipts are all you need to get these loans.
Uniform– Most banks and credit institutions offer personal loans at a fixed interest rate that are to be repaid within a fixed timeline. This doesn’t just keep your EMI amount uniform, but also goes a long way in helping you manage your budget more prudently.
Cheaper than a Credit Card– While credit cards are one of the most common lines of credit, they can often be quite expensive. With an APR of 30% to 40%, credit card interests can soon add up, landing you in a precarious financial position. Since the APR of most personal loans range from 11% to 30%, they are definitely a better option than credit cards.
Easily Available– Unlike other forms of credit, personal loans are widely accessible for one and all. You can get these loans from banks, P2P lenders, and Fintech lending platforms.
Am I Eligible for A Personal Loan?
While the eligibility parameters of a private personal loan may vary from one institution to the other, there are some basic guidelines that you’re required to meet.
- Your age should range from 21 to 58 years.
- Your monthly income should be at least INR 20,000.
- You should be an Indian citizen.
- You shouldn’t miss payments over the last 12 or 24 months.
- Your credit score should be 600 or higher.
Since the eligibility parameters are likely to differ in multiple lending institutions, it is always better to double check with the lender to see if you really meet their criteria.
How Should You Avoid Personal Loan Rejection?
While your personal loan application won’t be rejected if you meet the aforementioned parameters, it is always better to avoid doing the following things to increase your chances of approval.
- Do not change jobs too frequently. Ideally, you should be in your current job for at least 1 year to secure a good private loan offer.
- Do not apply for personal loans on multiple lending platforms as it can take a toll on your credit score.
- Double-check every minor detail before sending in your loan application.
- If you have a low credit score, work on it by clearing your outstanding dues.
Well, now that you have a detailed grasp on personal loans, choose the right lending platform and send in your application right away! At Qbera, we offer personal loans at flexible terms and low interest rates. Our rates currently start from 11.99% p.a.