How to get an instant loan – Introduction
Money plays an important part in our lives. Sometimes when we need funds urgently, opting for an instant loan is the best option. But how to get an instant loan is the big question. An instant loan is unsecured, so collateral or guarantor is not required for its approval. This makes it more lucrative. However, getting an instant loan might not be that easy when borrowers are unable to fulfill the lender’s eligibility criteria. Lenders have specific criteria for instant loan approval, such as age, income, credit score, job stability, etc. But it may differ from one lender to another.
How to get an instant loan – Importance of Income Source
Borrower’s per month income is an important criterion for instant loan approval because
- The higher the borrower’s income, more are the chances of consistent repayment
- Stability in business or job reflects the borrower’s financial stability
- A consistent flow of income keeps the borrower confident of timely loan repayment and thereby diminishes the fear of defaulting the loan account.
In order to nullify the credit risk, it is mandatory to check the source of the borrower’s monthly income. Very often, a borrower’s income verification needs to be done to ascertain the borrower’s repayment ability. Based on the borrower’s monthly salary, instant loan apps offer an easy to apply for a personal loan that requires minimal documentation.
How to get an instant loan?
- The borrower must be at least 21 years old and not more than 60 years.
- The borrower must earn at least Rs.12,000 per month if he is a salaried employee.
- If the borrower is a self-employed individual, his/her monthly income should not be less than Rs.15,000 per month.
- Only those borrowers will be given either salaried employees or self-employed loans.
Key features and benefits of instant loan apps
- The loan amount can be anything between Rs.5,000 to Rs.5 lakh.
- A few simple steps are needed on the app for a loan application.
- The app caters to those users who, as such, do not have a credit history at all because they may otherwise find it difficult to get a personal loan from elsewhere in India.
How to get an instant loan?
- For getting an instant loan, the user needs to download an instant loan app from PlayStore/AppStore.
- The person needs to check their eligibility for getting the instant loan. One can choose between various EMIs and tenures combinations from all the available options.
- If the loan gets approved, the user will be requested to upload all the necessary documents for completing their KYC and getting the loan.
- Once all documents are uploaded and verified by the team, the approved funds will get transferred to the user.
How to get an instant loan – Improving eligibility for an instant loan
Although various factors play an important role while deciding one’s loan eligibility, one can look at some common factors that may increase one’s chances of getting a loan. Below mentioned are some of the factors which can make you eligible for getting an instant loan:-
- Keeping a credit score of 750 and higher: People with a credit score greater than 750 will have higher chances of getting a loan. Higher credit scores will increase your chances of getting a loan from lenders.
- Adding a co-applicant: If the applicant adds a close family member as their co-applicant, then the loan eligibility is improved. One can add their children, spouse, or parents as their co-applicant. This assures the lender that they will get the said amount even if the applicant cannot pay.