Shortage of funds- a situation no one wants to experience. However, there may be situations in life like medical emergencies, urgent house repairs, or sudden expenses related to your child’s education, which you cannot delay and for which you may need money urgently.
In such situations, you can apply for an instant personal loan, which helps you to get finance quickly and meet the need of the hour. An instant personal loan is not just for improving lifestyle or for financing large purchases but can be your saviour during difficult times or when you need money urgently. These loans are easier to get and the application and approval process is quick and short.
Let’s check some of the key features of a personal loan that makes it a go-to financing option.
- Unsecured Loan: Personal loan falls under the category of unsecured loan products that don’t require you to provide any collateral such as a house property or car.
- Flexible End Use: There is no end-usage restriction of the loan amount. Personal loans can be used to fund multiple requirements.
- Higher Loan Amount: Based on your net monthly income, repayment capability, credit score, and stability of the job, you can avail of a personal loan of up to Rs 25 lakh.
- Quick Disbursal: Disbursals of personal loan post-approval of loan application is quick Fullerton India disburses the loan amount shortly after the approval of the personal loan application.
- Flexible Tenure: Personal loan comes with a repayment tenure of 12 to 60 months, which you can choose as per your repayment capability.
- Minimal Documentation: Compared to all other categories of loans, a personal loan document involves minimal things, which includes KYC documents, bank statements, and income proof.
Must Read: Personal Loan Benefits You Must Know Before Applying
Factors Affecting Personal Loan Eligibility
- Monthly Income: As personal loans are unsecured, lenders ensure that you have adequate monthly income and disposable income to service loan repayment on time. The income requirement is based on city and location. For metro cities, the income criteria are high as the cost of living in such cities is higher.
- Credit Score: A credit score is a three-digit number, which indicates your past credit behavior, creditworthiness, and how diligently you will pay back the loan. A CIBIL credit score above 750 is preferred by lenders for approving a personal loan.
- Your Age: To apply for a personal loan, your age must be at least 21 at the time of loan application and a maximum of 65 years by the time loan maturity or completion of repayment tenure.
- Work Experience: Lenders prefer giving a personal loan to applicants with work experience of at least 1 year, with at least 6 months in the current organization. More work experience indicates greater financial stability and the ability to manage finances in a better way.
- Debt-to-income Ratio: It indicates the percentage of income that goes towards servicing the loan. A higher debt to income ratio indicates a large part of income is going towards loan repayment and the chances of default are higher in case of a new loan being availed. Thus, applicants who have very low monthly obligations in the form of EMIs or credit card bills are more likely to get quick loan approval and lower interest rates.
Must Read: Reasons Why You Should Get a Personal Loan
You can use the personal loan EMI calculator to calculate the ideal EMI amount according to repayment capability and to increase the chances of personal loan approval.
A personal loan significantly eases your financial burden and helps to keep up with the pace of life. They are an attractive option, when you need money urgently and come with affordable and transparent terms and conditions. Apply today to avail Fullerton India’s personal loan interest rates starting from 11.99% per annum.