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A Beginner's Guide to Fintech Personal Loans in 2023

Personal loans have grown 4 times in volume from 39,90,000 accounts in FY19 to 1,58,10,000 accounts in FY22. Adults younger than 25, borrowing low-value short-term credit, have driven these loans, which have grown in volume (disbursals) 3.8 times between FY17 and FY21. 

 

Fintech lenders offer small-ticket short-term online loans on their personal loan apps. These loans are helping young adults meet their urgent cash requirements so they don't have to compromise the quality of their lifestyle. Here are a few things to know about these loans for a first-time borrower. 

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Eligibility Criteria

The eligibility criteria to apply for a personal online loan is simple. You usually need to be: 

  • A resident Indian 
  • At least 18 years of age
  • A salaried employee of a registered company
  • A minimum salary of INR 15,000

 

The easy eligibility criteria help more and more salaried individuals to avail the loan. 

 

How to Apply?

You must download the chosen personal loan app on your Android or iOS device. Then open the app and create your profile by uploading your personal details and essential documents. Once they are verified, you can choose a suitable loan amount and tenure based on your repayment capacity. 

 

You can borrow:

₹15,000-₹1,10,000 for 90 days, with a minimum salary of ₹15,000 per month

₹25,000-₹2,10,000 for 180 days, with a minimum salary of ₹20,000 per month

₹50,000-₹2,58,000 for 270 days, with a minimum salary of ₹25,000 per month

₹75,000-₹3,00,000 for 360 days, with a minimum salary of ₹40,000 per month

₹1,25,000-₹4,00,000 for 540 days, with a minimum salary of ₹50,000 per month

 

The funds will be instantly disbursed to your linked bank account if you qualify for the chosen loan amount and term. The entire loan process requires just a few minutes! This can help meet urgent financial needs like a medical emergency, debt consolidation, home renovation, buying a 2/4-wheeler, etc.

 

How to Improve Your Creditworthiness?

Unlike a bank or a traditional lending institution, a fintech company doesn't rely solely on your credit score. It helps widen your scope of borrowing by assessing your creditworthiness more comprehensively to evaluate your Social Loan Quotient (SLQ) score. It ranges from 0 to 995 and can be checked on the personal loan app.

 

The score is calculated based on current data like your social media footprint, smartphone metadata, and factors like your salary, career experience, educational qualifications, and KYC details along with your credit score. By keeping these details updated and maintaining an excellent social media presence, you can boost your SLQ score. A moderate to good credit score coupled with a high SLQ score can help maximize your chances of being eligible for an online loan

 

Conclusion

Applying and qualifying for a fintech personal loan is a breeze. So, go for one whenever and wherever you need urgent cash. Then repay the EMIs responsibly and quickly via NEFT, IMPS, or automated bank account debits.