A personal loan is a great way to meet your financial expenses without any collateral. Unsecured personal loans enable you to cover expenses from home renovation to travel to a wedding. Personal loans are ideal when you need immediate cash; however, loan approvals are not always a guarantee. You need to meet the eligibility criteria, including credit score, debt-to-income ratio, and documentation. In this article, we discuss the tips that help you get approved for personal loans through different personal loan apps, namely Bajaj Finserv App, Kreditbee, Navi, Cred, and MyMoney, along with a comparative analysis of those apps.
Tips to Get Approved for Personal Loans
Before we analyze the different apps, let us understand the common tips that help you get loan approval with these apps.
- Check your credit score: Lenders evaluate the borrower’s credit score to assess their creditworthiness. A higher credit score represents a responsible borrower with better repayment capabilities; hence, lenders consider applications with a higher credit score first. So, you should frequently check your credit score online as it determines your approval chances.
- Determine your loan eligibility: Calculate your loan eligibility with the help of a personal loan calculator. Personal loan calculators help estimate the loan amount to borrow after considering your financial health, including income, expenses, and other obligations.
- Provide the necessary documentation: You should apply for a personal loan with all the necessary documentation to avoid rejection. Documents such as identification proof, income proof, residence proof, PAN card, and bank statements are required.
- Research lenders and choose the best: You should research different lenders and their interest rates, fees, and loan repayment tenure. Select the best lender that meets your financial requirements and suits your budget without straining your budget.
- Try to maintain a good debt-to-income ratio: Keep your existing debts low in comparison to your income. This reflects your capability to take on additional debts alongside your existing obligations.
Personal Loan Apps: A Comparative Analysis
1. Bajaj Finserv App:
Bajaj Finserv is one of the leading financial institutions in India that not only offers various types of loans but also provides a personal loan app where you can apply for a loan and complete the documentation process online.
Features:
– One can apply online or through the mobile app quickly
– A person can avail loan amount of up to₹40 lakhs
– The interest rate varies between 10.99% to 16.00% per annum
– The loan tenure is flexible ranging from 12 months to 60 months.
– No need to visit any branch physically for any processing of the loan
– Get access to complete loan details and repayment schedule through the personal loan app
Eligibility Criteria:
– A borrower should be a resident of India and fall under the age range of 23 to 55 years.
– Employment status should be a salaried individual working for either an MNC or a private or public sector company.
– The salary range requirement is between INR 25,000 to INR 35,000 per month.
Pros:
– The loan process requires minimal documentation
– The loan amount is disbursed within 24 hours
– The loan application process can be completed within a few minutes
– The loan tenure is flexible as per borrower requirements
Cons:
– The loan processing fee for the personal loan is high
– The interest rates vary according to credit history
2. Kreditbee:
Kreditbee is another popular personal loan app where you can avail loan amounts ranging from INR 1,000 to INR 1 lakh with up to 15 months tenure.
Features:
– The loan application process is completely online
– A borrower can avail loan amounts from INR 1,000 to INR 1 lakh with a tenure of up to 15 months
– The documentation process is hassle-free and easy to complete
– Loan disbursal can be done within a few hours
Eligibility Criteria:
– A borrower should be above 18 years of age
– A borrower should be a resident of India
– Employment status requirement differs for different categories, such as for salaried employees, businesspersons, and self-employed individuals.
– For salaried employees, the monthly salary requirement is INR 20,000 to INR 40,000.
Pros:
– Minimal paperwork needed to complete the loan application process
– Loan disbursal takes only a few hours
– Competitive interest rates offered
– Loans for short-term needs are available
– Repayment schedules are flexible as per borrower convenience
Cons:
– A borrower may face loan rejections with lower credit scores
– Loan approvals may take longer for new or first-time borrowers
3. Navi:
Navi is a digital finance company that offers various financial products and services such as personal loans, business loans, mutual funds, and insurance. Navi’s personal loan app provides quick access to personal loans of up to INR 5 lakhs.
Features:
– The personal loan application process is entirely online
– A borrower can avail loan amounts starting from INR 10,000 to INR 5 lakh
– The loan repayment tenure is from 3 months to 36 months
– Funds disbursal is done within 24 hours
Eligibility Criteria:
– A borrower should be a resident of India
– A borrower should be between the ages of 23 to 58 years
– The minimum monthly income required is INR 20,000
Pros:
– Personal loan application process is online
– Funds are disbursed within 24 hours
– Loan amount is disbursed in one go or in installments
– Repayment schedules are flexible
– The interest rate is comparatively low
Cons:
– A borrower with a low credit score may face loan rejections
– Processing fees for the loan are high compared to other apps
5. Cred:
Cred is a mobile application that helps manage credit card bills and provides access to personal loans. Cred users can borrow up to INR 5 lakhs personal loans with various customized repayment plans and interest rate options.
Features:
– Personal loans of up to INR 5 lakhs can be availed
– The loan repayment tenure is between 18 months to 36 months
– The loan application process is completely online
– No collateral or guarantor is required
Eligibility Criteria:
– A borrower should be an Indian resident
– A borrower should have a minimum credit score of 750
– The minimum monthly income required is INR 20,000
– A borrower can be a salaried or self-employed individual
Pros:
– Personal loan applications are online
– Funds are disbursed quickly
– No collateral or guarantor is required
– The interest rate is low
– Repayment schedules are customizable as per borrower requirements
Cons:
– The processing fee is quite high
– Personal loan eligibility criteria are stringent
5. MyMoney:
My Money is a personal finance platform that offers various financial products and services, including personal loans. MyMoney allows borrowers to borrow up to INR 2 lakhs for different purposes like wedding, travel, personal needs, etc.
Features:
– Borrowers can apply for personal loans ranging from INR 10,000 to INR 2 lakhs
– The loan repayment tenure ranges from 12 months to 36 months
– The interest rate ranges from 16% to 18%
– The loan application process is completed entirely online
– Borrowers can check their loan eligibility using MyMoney’s personal loan calculator
Eligibility Criteria:
– A borrower should be a resident of India
– A borrower should be between the ages of 21 to 56 years
– The minimum monthly income required is INR 10,000
Pros:
– MyMoney provides instant personal loans
– The loan application process is completely online
– Quick loan approval and disbursal
– The interest rate is low
Cons:
– The processing fee for the personal loan is high
– A borrower with low credit scores will face rejections
Conclusion:
The tips provided above and the comparative analysis of personal loan apps can help you choose the best personal loan app according to your financial requirement. Personal loan apps have made it much easier and faster for borrowers to access personal loans. However, keep in mind that no app provides a guarantee of loan approval. It is advisable to research the different apps, read reviews and ratings, and check the terms and conditions before selecting one.
