We cannot predict life, and unpredicted expenses may arise at times. It may be medical expenses, school fees for children, etc. But when that situation comes, a personal loan is one of the emergency funds that can give you a hand. Many applications give a person a loan via the loan app. Nowadays, it requires only minutes to disburse the loan that you applied for.
To get an instant loan from online loan applications, you need to satisfy certain eligibility criteria. The most important one is the cibil score. You need to have a 300 to 900 cibil score to get your loan processed. Many financial institutions require a 650 above credit score to process your application. As soon as you submit your application, the first thing that every bank or NBFC will do is to check your cibil score. Let’s see what are all the things required to get an instant personal loan.
Good income
Without a proper income statement, no banks or NBFCs will offer any loan. A proper statement is required with minimum income. A steady income and a proper job will make the borrower trustable and low risk for the loan apps lender. If any additional income comes for the borrower, they can show that as well as an assurance that the borrower can manage paying EMI every month. Interest rates may go up if you have a low cibil score but have a good income. But the positive side is that you can still get a loan if you have a low cibil score.
Lower loan amount
If you have a low cibil score, then you cannot go for a higher personal loan. You can easily apply for a lesser loan amount to get immediate approval. If you already have a low cibil score, you are putting the personal loan app like NIRA at risk; there is no assurance that you may repay the loan. So, if the loan amount is lower, the risk will also be lower.
Co-applicant
If you apply for a personal pay later loan with a guarantor or co-applicant who has a good cibil score, the chances of getting a personal loan are higher for you. The lender will be confident if the guarantor has a good cibil score. So, in case of loan default, the loan amount will be collected from the co-applicant.
What do you have to do to maintain a good cibil score?
All you need to do is pay EMI on time. And credit history should be maintained well. The credit ratio should also fall under 30%. The number of credit histories should be low, too. We all take loans only if there’s an emergency. Getting loans frequently may affect the cibil score badly. The outstanding debts should be as low as possible.
Conclusion:
Getting a personal loan from an instant loan app is easy. But maintaining a good cibil score is what is difficult. If you have a good cibil score, you will get a lower interest rate and a higher loan amount. If you have a low cibil score, the chances of getting a loan are also lower. Interest rates may go up for even lower amounts of personal loans. So, maintaining a good cibil score is important.