Planning to take an instant loan? Do you know whether or not you are eligible for one? Lenders always have their eligibility requirements, so getting an instant loan is always a matter of checking those off your list. But let’s revisit some basics first.
What is an instant loan?
An Instant loan helps individuals to meet their financial commitments or requirements. This type of loan comes in handy if you have unexpected expenses to take care of that have a short- or medium-term period.
People use the funds received through an instant loan to make big purchases, consolidate high-interest debts, meet wedding expenses and educational expenses, go on a trip, and many other reasons.
The loan is usually taken from a bank or a non-banking financial company (NBFC) at a pre-agreed rate and terms and conditions.
Why opt for an instant loan?
We always look at multiple options and then take the loan which is the cheapest and most convenient to repay. Because after all, we sure want to take that extra mile on a trip or eat that soufflé in that fancy restaurant.
Instant Loans are approved fairly quickly without any asset showcase or documentation. The process is minimal and convenient. Not to forget, the easier access and immediate disbursement of an instant loan can save you from looking at other loan options endlessly.
Just like all the other types of loans, instant loans also require you to meet the eligibility requirements of the lender. While the eligibility criteria can vary between lenders, there are a few requirements that every lender would require you to fulfill to get approved for the loan.
Here are 5 factors that affect the eligibility criteria for approval of an instant loan online.
This criterion is factored in to ensure the lender that you have an adequate number of working years remaining. In most cases, lenders prefer applicants between the age group of 21 and 55 years.
Therefore, salaried applicants must be in the range of 23-58 years, and self-employed non-professionals must be in the range of 28-65 years at the time of applying for the loan for easy acceptance.
2. Minimum salary
Since collaterals do not back up instant loans, your monthly income and repayment capacity becomes important. The income requirements vary based on the location you live in, i.e. it may vary across metro cities (Tier-1 cities) and towns, and villages (Tier-2 cities).
Applicants with more work experience are generally considered to have a more financially stable future as compared to someone who has recently started working. At EarlySalary, the minimum salary requirement is ₹18,000 for Tier-1 cities and ₹15,000 for Tier-2 cities.
3. Cibil score
Apart from the general eligibility criteria that you will be required to fulfill, you will also need to have a good CIBIL score for your instant loan request to be approved.
A credit score is a 3-digit number that represents your creditworthiness to the lender and helps assess your risk of default. It describes how you have managed your finances and bills in the past. The lower the score, the lesser are your chances to get a good deal on your loan application. The higher, the better.
Most lenders in India rely on the CIBIL score, which ranges between 300 and 900.
At EarlySalary, we look beyond just a CIBIL score to determine your creditworthiness. It’s what makes us special. But you can nevertheless look at the factors that determine your credit score to improve your chances.
Your current liabilities can make or break the deal when it comes to approving your loan application. The lender will weigh your debt-to-income ratio and then decide whether to approve the application or not.
This is because most of your monthly income may go towards loan repayments like paying huge credit card bills, home loan EMIs, car loan EMIs, and other debts, which may not leave you with enough money for your domestic expenses. This information helps the lender know that while you repay your existing liabilities, you would also be able to pay off the new instant cash loan you are planning to take.
5. Work experience
Just like your income, your work experiences are also important. The employment status of a customer helps the lender decide if the employee has a financially secure future. The minimum experience may vary depending on the lender you choose, your occupation, and other factors as well.
A minimum of 2-3 years experience is favorable; the applicant should be employed with the current employer for a minimum of 1 year.
Equipped with the knowledge of these factors of eligibility, you may check your instant loan availability. Looking for a friend who never lets you run out of cash when you need it the most? You have us here! Be it a medical emergency in your family, wedding, vacation, child’s education, or something as simple as purchasing a new appliance or even a mobile phone, EarlySalary instant cash loan is an excellent way to manage a host of emergencies and non-emergency expenses.