Get an Instant Fintech Loan? Check eligibility criteria
Over the past few years, the rise of fintechs has changed many people’s approach to banking. Apart from payment services, people have also started using fintech apps to avail instant personal loans.
While traditional banks take days (sometimes even weeks) to process personal loan applications, fintechs provide funds with just a few clicks. However, fulfilling certain criteria helps an individual enjoy a smooth loan process. These include:
To ensure that your instant loan application is approved in a short period of time, your credit score – based on repayment history – must be 750 or higher. A score of 750+ assures the bank that you are making timely repayments, thus making you a creditworthy customer. Although fintechs also offer instant loans to those with credit scores below 750, interest rates for these customers are generally higher.
Prepare all the documents you need to upload
A fintech asks the loan applicant to upload documents such as bank statements, proof of address and identity, and photographs, among others. Keeping these documents stored in your device helps you complete the online loan application process in minutes. Most fintech platforms retrieve KYC details digitally through your original documents.
Check the lender’s eligibility criteria
Different fintechs have different eligibility criteria for granting personal loans. Therefore, it is advisable to check the criteria beforehand. Eligibility can also be checked on any financial portal (like Bajaj Finance, Bankbazaar and others) by providing monthly income, monthly expenses, employer, date of birth and city of residence, among other details .
As they say, don’t bite off more than you can chew. When applying for a personal loan, be aware of EMIs you can comfortably repay. Do not opt for a loan amount greater than what you actually need, even if you qualify for it.
Read the terms and conditions
Probably the most repeated yet most crucial piece of advice is to always read all terms and conditions carefully before signing any loan agreement online. This helps to avoid (mostly unpleasant) surprises later.
(Edited by : Thomas Abraham)
First post: STI