Financial emergencies can arise anytime. For salaried professionals, instant loans provide a quick and effective solution to address immediate needs like:
- Medical emergencies
- Unexpected travel plans
- Unplanned expenses like car/home repair
With the advancement of digital lending platforms, applying for an urgent loan through a loan app has become convenient. Here is a detailed breakdown of the eligibility requirements and factors to consider before applying for loans via personal loan apps.
What are Urgent Loans for Salaried Professionals?
Personal loans, which are unsecured and designed to provide quick financial assistance, are also known as urgent loans. These loans do not require collateral and can be availed through a loan app. You need minimal documents to access the funds.
Check out some of the key features of urgent loans:
- Fast disbursal (within 24–48 hours)
- Flexible loan amounts, ranging from ₹10,000 to ₹5 lakhs or more
- Fixed repayment tenures, typically between 6 to 36 months
Eligibility Requirements for Urgent Loans
Applying for a loan has become convenient with the coming of age of online lenders. However, their eligibility requirements may vary. Check out the following details:
- Age Criteria
Most lenders have a specific age range for salaried professionals applying for urgent loans.
| Age Group | Eligibility |
| 21-60 years | Commonly eligible |
| Below 21 or above 60 | Usually not eligible |
- Employment Status
Stable employment is a critical factor for loan eligibility. The following are some of the common requirements:
- Must be a salaried employee
- Minimum work experience of 12–24 months
- Continuity in the same job for at least 2-3 years
- Income Criteria
Your monthly income also determines the loan amount and approval chances. The following are some of the standard income requirements:
- Minimum monthly salary of ₹15,000 to ₹25,000 (varies by lender).
- Regular credit of salary into a bank account (not cash).
| Monthly Income | Loan Amount Eligibility |
| ₹15,000–₹25,000 | ₹50,000–₹1,00,000 |
| ₹25,000+ | ₹1,00,000+ |
- Credit Score
A good credit score increases your approval chances and may also help you get better interest rates. Here are the basic principles to keep in mind:
- A credit score of 650 or above is a must
- If you have a low credit score, then the lender may provide you with a loan at higher interest rates
| Credit Score | Approval Chances |
| 750+ | Very High |
| 650-749 | Medium |
| Below 650 | Low |
- Documentation
Minimal and accurate documentation speeds up the loan approval process on personal loan apps. The following are some of the documents you may require, so keep them on hand:
- PAN and Aadhaar card as your identity proof
- Latest salary slips as proof of steady employment
- Bank statements for the last three to six months as income proof
How to Improve Your Eligibility for Urgent Loans
By following certain strategies, you can improve your chances of getting an emergency financing facility.
- Maintain a Stable Income
Financial institutions prefer applicants with consistent salary credits. The following are some of the tips you need to follow:
- Avoid frequent job changes
- Ensure timely salary deposits into your account
- Improve Your Credit Score
A higher credit score makes you a more reliable borrower. Here are the steps to improve it:
- Pay credit card bills and loan EMIs on time
- Avoid maxing out your credit limit on a card
- Monitor your credit report for errors and report them
- Do not apply for many loans and cards at the same time
- Lower Your Debt-to-Income Ratio
The debt-to-income (DTI) ratio compares your total monthly debt payments to your monthly income. A lower DTI ratio signifies that you manage your money better.
| DTI Ratio | Approval Chances |
| Below 30% | High |
| 30-50% | Medium |
| Above 50% | Low |
Here is how you can lower the DTI ratio:
- Pay off outstanding loan balances and credit card balances
- Avoid taking on multiple loans simultaneously
- Select the Best Loan App
Choose personal loan apps that cater specifically to salaried professionals. The following are some of the factors to consider:
- Instant eligibility check
- Fast approval and disbursal time
- Positive user reviews
Top Benefits of Using Loan Apps for Urgent Loans
These loans can come in handy if you need funds during a financial emergency. The following are some of their advantages:
| Benefit | Details |
| Quick Approval | Loan approval within hours so you can address urgent needs at once |
| Minimal Documentation | Needs only basic documents so you can focus on your emergency instead of getting documents ready |
| Convenience | Apply anytime, anywhere through your phone while you are on the go |
| Transparency | Clear terms and conditions so you have clarity on all loan terms and no unpleasant surprises later |
Mistakes to Avoid While Applying for Urgent Loans
- Applying for Multiple Loans Simultaneously
Each loan application results in a hard inquiry on your credit report, lowering your credit score. Use the pre-approval feature on the loan app to check eligibility without affecting your score.
- Providing Inaccurate Information
Incorrect details may lead to rejection or legal consequences. To avoid inaccuracies, double-check all information before applying.
- Ignoring Additional Fees
Many personal loan apps charge processing fees, late payment penalties, and repayment charges. These can increase the cost of borrowing. Read the terms and conditions carefully to understand all costs.
By understanding the eligibility requirements and preparing your financial profile, you can enhance your chances of approval on a loan app. Keeping your documentation ready and maintaining a good credit score are key.
Get your credit score and detailed credit report for free by using the OneScore App. It also provides personalised advice and frequent updates to help you raise your credit score. So, what are you waiting for? Download this powerful app and view all of your credit activity in one place!
