There are a lot of things that you just can’t manage in your monthly income. Taking a personal loan is the best option in that case. However, many people wonder how to get an instant loan even after having a bad credit score.
Getting a loan can be quite difficult if you have a bad credit score. But there are many instant loan apps in India, such as PaySense, which can help you with that.
In case you have a bad credit score, and you are planning on getting an instant loan, we are going to tell you a few steps following which you can easily get an instant loan.
What is a credit score?
A credit score is a three-digit number given by recognized credit bureaus to determine a borrower’s eligibility for credit. The credit score is determined by a number of variables, including your history of timely loan repayments, the total amount of debt you owe, the nature of those obligations, etc. A person with a higher credit score is more likely to be a reliable payer who poses little danger of missing payments on loans or other obligations.
A person’s credit score will be worse if they have a history of missing payments on credit card balances or earlier loans. A loan applicant with a low credit score is regarded as high-risk. Any loan that a lender approves for a borrower with a poor credit score will often have a higher interest rate.
Credit reports and credit scores are very important since they affect the majority of a loan’s characteristics, including interest rate, loan period, and amount. For example, banks often view borrowers with a credit score of 750 as optimal. Anything less will have an impact on your rate of interest (which will rise), loan amount (which will reduce), and duration (which will shorten).
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How to get an instant loan when you have a bad credit score?
If you’re also wondering about how to get an instant loan on a bad credit score, you can use PaySense, as it is the best instant loan app in India. Here’s what you can do to get an instant loan on a bad credit score.
- The first thing you can do is apply for a loan with a co-applicant. This would make the process easier.
- You can provide the lender with proof of your loan repayment capacity to get an instant loan on a bad credit score.
- Furthermore, to make the process more convenient, you can just apply for a lower loan amount.
- The easiest thing you can do to get an instant loan is to pledge collateral.
- You can apply for a loan through alternative lenders like NBFCs, as they do not necessarily require an excellent credit score.
Eligibility Criteria
Age
If you are a salaried person, your age must be 21-60 years. However, if you are self-employed, your age must be 22-55 years to get an instant personal loan.
Monthly Income
For a salaried person, it is required to have a minimum monthly income of ₹18,000. Although, for a self-employed person, the required minimum monthly income should be ₹20,000.
Minimum Loan Amount
The minimum loan amount for both salaried and self-employed people is ₹5,000.
Maximum Loan Amount
A salaried person and a self-employed person can take a loan of up to 5 lakhs.
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Documents Required
For your Identity Proof
You will need your passport, voter’s ID, Driving License, or your PAN card for your proof of identity.
For your Address Proof
You must have your passport or utility bills for proof of your address.
For your income proof
If you are a salaried individual, you are required to have a bank statement of your salary account for the past two years. However, if you are self-employed, you will require an audited financial statement for the past two years.
