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Unsecured Loans in India: Are You Eligible for One from a Fintech Lender?


Unsecured Loans are collateral-free loans, and personal loans are the most popular product in the category. Lenders offering unsecured personal loans are many in today’s market that has seen tremendous transformation in the recent past. Thanks to enabling technology and advanced risk-assessment and profile-assessment algorithms, these instruments have become easier to access by the populace.

But what class of people are eligible for unsecured loans in India? Are unemployed people eligible? Are self-employed people eligible too? Or are these loans meant only for the salaried class? Well, let’s find out.

Eligibility for unsecured loans in India

Before we delve into the details of eligibility spelled out by different lenders, let us first look at what lenders look at while assessing unsecured personal loan applications.

Your credit score

For unsecured loans, it is essential that individuals have a good credit outlook. Banks, the popular ones that offer unsecured personal loans in India, usually require individuals to have a minimum credit score of 700 to qualify for personal loans. Some top banks that are even more selective in their eligibility approach, and need individuals to have a minimum credit score of 750.

If you apply for an unsecured loan with a Fintech lender or P2P lender on the other hand, the eligibility on the credit score front is way more lenient.

If you wish to apply for one from Qbera, you need a minimum credit score of 600 in order to be eligible.

Your repayment history

Your repayment history is a crucial parameter that influences your loan application. The repayment history is basically a documented information sheet that records all instances of payments made towards existing loans – both secured loans and unsecured loans. Your repayment history has the largest weightage on your overall credit score, – 35% of your credit score is made up by your repayment history. A poor repayment history ideally reflects multiple instances of late payments on current credit sources, or instances of defaults. Note that a single instance of default in the case of unsecured loans such as personal loans can bring your credit score down by almost 50 points, while a default on a home loan can bring your credit score down by almost 80 points, or more in some cases.

Your employment stability for unsecured personal loans

How stable you are with your employment is another essential parameter that lenders use to assess your eligibility for unsecured loans in India. Fintech lenders allow applicants working in uncategorized companies to apply for personal loans, and require individuals to have a minimum employment experience of at least 6 months in order for them to qualify for credit. Top private lenders usually don’t entertain applicants without at least 1 year of employment experience, and those working with unlisted companies or uncategorized employers.

Employment documents for unsecured loans in India

If you have your salary slips and bank statements for the last 3 months, you can be eligible for an instant personal loan from Qbera. Most Fintechs have similar eligibility criteria as far as incomes and credit scores are concerned. For Qbera, a minimum income of Rs. 18,000 is required for to qualify for unsecured personal loans in India.

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