The need for money can arise at any given moment for any individual. This has led to a noticeable increase in the popularity of personal loans.
In the current digital age, availing this loan type is as effortless as placing an order for food or groceries through your smartphone. This is because the personal loan policy is also quite lenient, and all that is required is a reliable platform and access to the Internet.
In order to qualify for this type of loan, you’ll need to have a good credit score and a steady income. Moreover, basic information such as your income, debts, and assets would be required by the lender.
What is a personal loan?
It is a loan type that is not secured by collateral, such as a car or house, meaning that the lender does not have any assets to take if you default on the loan. Moreover, these generally have fixed interest rates and terms, which lets the potential borrower know exactly how much you’ll be paid each month and how long it will take to repay the loan amount.
This type of loan, which is generally availed from a credit line app, can be used for a variety of purposes, such as consolidating debt, paying for an event/wedding, or making a large purchase. The rate of interest here depends on the credit score as well as the borrower.
What are the factors that decide your personal loan eligibility?
Your income is one of the prime factors that lenders consider when determining your loan eligibility. A higher income indicates that you have the ability to repay the loan amount, which ultimately increases your chances of getting approved.
Your credit score is also evaluated before the application is approved. If it is good, it shows that you, as a borrower, have a history of responsible credit management and are more likely to repay the loan timely.
Your existing debt obligations, if any, such as credit card balances, auto loans, and mortgages, can also impact your personal loan eligibility. Remember, if you have high levels of debt, lenders may view you as a higher-risk borrower, and the chances that your application will be approved will reduce.
Lenders typically prefer borrowers who are well-employed and have a stable income source. So, if you are one and looking for a loan, keep ready some additional documents ready to prove your income and repayment capacity.
Generally, what happens is that younger borrowers are viewed as higher risk, while older borrowers are viewed as more stable and lower risk.
How to avail a personal loan?
Availing a personal loan from Stashfin, an all loan app, is as easy as you order your favorite food item from your smartphone. No need to go anywhere as you just need to visit our website or, more simply, download our application. We primely focus on comfort and convenience for all our potential customers as well as ongoing customers.
- Download the app
- Sign up using your mobile number
- Add your personal details to check your credit limit
- Complete KYC