Did you know that over 68% of the population in India is turned down for loans because they have a low credit score? Well, the good news is that getting an instant personal loan today has never been easier, thanks to digital lending platforms. If you have a financial emergency or you're just ready to make a big purchase, you can apply for a personal loan online and the digital lending platform will approve your application, in just a few clicks.
This guide will help to explain everything you need to know about personal loans - especially if you're worried that you will be denied approval due to limited or low credit.
What is a Personal Loan?
A personal loan is an unsecured (no need to pledge any collateral e.g. property, gold, etc.) credit option offered by banks, and NBFCs or non-banking financial companies. Personal loans would typically require a review of your credit score, employment status, income, and repayment ability.
Personal Loan Features
Loan amounts: ₹10,000 to ₹25 lakh
Loan terms: 6 to 60 months
Interest rates: chargeable based on credit score usually between 10%-24%
Application Cable: can be used freely for travel, education, weddings, medical expenditures or debt consolidation
The Rapid Rise of Personal Loans in 2024
The popularity of quick personal loans is hitting new highs in 2024. "What is driving this?" you may ask. "Digital lenders like Kashti.com have simplified the lending process."
Advantages of Securing a Personal Loan Online
Instant approval! Get your decision in under 5 minutes
100% paperless, with no paper! Digital KYC & verification
Open 24/7, loan whenever you want, place it in the bank, cash cards
Some digital lenders even consider low credit score profiles!
💡 Fact: Online platforms like Kashti.com use technology to evaluate your profile regardless of your CIBIL score.
How to Apply for a Personal Loan Online
Applying for a personal loan is straightforward, quick, and uncomplicated. Here's how it works.
1. Select a Platform You Trust
Choose a reputable platform like Kashti.com that has an instant Gupta-approved loan with flexible terms.
2. Check Your Eligibility
Candidates should meet the following criteria:
Must be age 21-60
Must be an Indian resident
Have a steady monthly income over ₹15,000
Credit score is above 600 (many lenders will consider lower scores)
3. Complete the Loan Application
You need to upload:
Your PAN and Aadhaar
Your bank statements or payslips
A selfie for digital KYC
4. Get Approved Immediately
Post-submission, an AI algorithm processes your information, if you're applicable, your approved personal loan will automatically be processed, and in some cases you will see the money in your bank account in a few hours.
Can I borrow money if I have a low credit score?
You sure can! Banks might be less willing to lend you money, but online platforms generally have more flexible lending criteria. If I can use Kashti.com as an example, they work with lenders who offer personal loans with a low credit score.
Banks look at more than just your score:
Monthly income stability
Current debt loads
Bank statement reviews
Employment history
So you might still have options even if your score is below 650 - although the interest rates might be a bit higher.
Pros & Cons of Instant Personal Loans
Pros Cons
Quick Processing Higher interest rates if you have a low credit score
No collateral Pre-closure fees
Easy digital process Over-borrowing
Flexible use Shorter tenure periods with some lenders
Frequently Asked Questions
Q1: How long till I get my instant loan?
Most platforms will disburse the loan amount a few hours after approval.
Q2: Is it safe to apply for a loan online?
Certainly, as long as you use a secure CASL website, and a verified site such as Kashti.com.
Q3: What credit score do I need?
Ideally a score above 700, many lenders will offer loans with a score of 580 or above.
Q4: Can I make an early repayment?
Sure, but make sure to check if there are any prepayment charges.
Q5: What documents will be required?
You will need PAN and Aadhaar, proof of income, and bank account details.
Q6: What if I am self employed?
No problem. Just upload proof of your business income, such as GST or bank statement.
Q7: Can I take out more than one loan at a time?
In theory yes, but it depends on how much you earn and what EMIs you already have.
Visual Callouts (Suggestions):
Infographic: “5 Steps to Apply for a Personal Loan Online” (alt: personal loan apply online process)
Comparison Table: Interest rates for credit scores 580-750 (alt: instant personal loan rates)
Checklist: Documents needed for loan application process (alt: loan apply checklist)
Chart: Timeline to approval for personal loans by lender type (alt: instant loan approval speed)
Final Thoughts: Is an Instant Personal Loan Right For You?
A personal loan is a good option if you just want fast access to funds without pledging asset(s). You can now get approved rapidly with lenders using Kashti.com - it's that easy, even at an imperfect score
Just remember:
Only borrow as much as you need
Ensure you read the terms of the loan
Keep track of your EMIs below your pay-check, it’s easy to forget for a long term
Are you ready to see options? Apply for a personal loan online now & get money at home!
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