Securing instant loan from fintech? Check eligibility criteria

In the past few years, the rise of fintechs has changed the approach of many people towards banking services. Besides payment services, people have also started using fintech apps to avail of instant personal loans.

While traditional banks take days (or weeks sometimes) to process personal loan applications, fintechs provide funds in a few clicks. However, fulfilling certain criteria helps an individual enjoy a smooth loaning process. These include:

To ensure that your instant loan application is approved in a short duration, your credit score -- based upon repayment history -- has to be 750 or above. A score of 750+ assures the bank that you make timely repayments, thus making you a credit-worthy customer. While fintechs provide instant loans to those with a credit score lower than 750 as well, the interest rates for such customers are usually higher.

A fintech asks the loan applicant to upload documents like bank statements, address and ID proof, and photographs, among others. Keeping these documents stored in your device helps you complete the online loan application process within minutes. Most of the fintech platforms fetch the KYC details digitally through your original documents.

Different fintechs have varying eligibility criteria to extend personal loans. Therefore, it is advisable to check the criteria beforehand. Eligibility can also be checked on any finance portal (like Bajaj Finance, Bankbazaar, and others) by putting in 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. While applying for a personal loan, be aware of the EMI you can repay comfortably. Don't go for a loan amount higher than what you really need even if you are eligible for it.

Probably the most repeated and yet the most crucial advice is to always read all the terms and conditions carefully before signing a loan agreement online. This helps prevent surprises (mostly nasty) later on.