Things to Consider before Availing a Personal Loan in India

A personal loan can feel like a lifesaver when you are looking for quick cash. But before you apply, it's best to stop and think about this.

Is it the right time? Are you eligible?

This blog will help you understand the key points, so you can make a smart and informed decision for your financial requirements.

Understanding Personal Loan Eligibility in India

Before a lender gives you a loan, they check if you can pay it back. Here are the main things they look at:

CIBIL Score

Your CIBIL score is like your financial report card. It is a number between 300 and 900. A score above 700 is considered good. A good score shows lenders you are reliable and can get you a loan with a lower interest rate. In the case of AFI Loans, you can avail loans with a CIBIL SCORE of 500 or above.

Age

You need to be of legal age to sign a contract. Most lenders require you to be at least 21 years old when you apply and not older than 60-65 when the loan ends, which is one of the requirements for availing loan from AFI.

Monthly Salary

Your income proves you can repay the EMI. For salaried people, a minimum monthly salary is required, depending on the city and lender. When availing a personal loan through AFI, the minimum salary you as an individual should make at least ₹30,000.

Existing Loans and Debts

If you already have a car loan, home loan, or other EMIs, lenders will check your total monthly debt. They want to ensure your total EMI doesn't eat up most of your salary.

Job Stability

A steady job history shows a stable income. Lenders feel more confident if you have been with your current employer for at least 6 months to a year, which is 1 year in the case of AFI Loans.

When should you consider availing a personal loan?

A personal loan is best for real needs, not wants. Here are some good reasons to consider one:

For a Medical Emergency

High hospital expenses may result from an unexpected health problem in the family. You can quickly obtain the money you require with a personal loan, freeing you up to concentrate on the well-being of your family rather than the expense.

To Consolidate Multiple Debts

You can pay off multiple credit cards or small loans with high interest rates with a single personal loan. This streamlines your payments into a single EMI, frequently with a reduced interest rate.

For Unplanned Travel Expenses

Sometimes, an urgent family situation may require you to travel at short notice. A loan can cover last-minute flight and other travel costs.

For Unforeseen Personal Expenses

This could be an urgent home repair after a monsoon leak, a sudden school or college fee payment, or an essential appliance breaking down.

To Manage a Salary Payment Delay

A short-term personal loan can assist you in filling the gap without missing your financial obligations if your salary is delayed but your bills are due.

Factors to Evaluate Before Taking a Personal Loan

We believe you shouldn't always take out a loan just because you can. Consider these questions:

Is the Loan Amount Right for My Salary?

Determine how much of your monthly income will go towards your EMI. It's a good idea to keep your total EMIs between 40-50% of your take-home salary.

Is This a Real 'Need' or just a 'Want'?

Be honest. Is it for a medical operation (a need) or for the latest smartphone (a want)? Avoid loans for luxury items that lose value quickly.

How Urgent is This Expense?

Can it be planned and saved for? If you can avoid debt by saving for a few months, that is always a better financial decision.

What is My Total Existing Debt?

Look at all your current loans and credit card bills. Taking on a new loan when you are already in debt can be risky and stressful.

Can I Repay My Credit Card Dues Instead?

Credit card interest rates are much higher than personal loans. If you have large credit card dues, it might be smarter to use a personal loan to pay them off and save on interest.

Avail personal loan with Ayaan Finserve India in 3 simple steps!

When you have thought it through and decided you need a loan, Ayaan Finserve India makes the process simple and fast. We offer quick, transparent personal loans designed for salaried Indian residents who meet our basic eligibility criteria.

1. Apply Online: Enter your employment and personal information in a brief application on our website. You must be a salaried person over 21, earn at least ₹30,000 per year, and have a CIBIL score of 500 or higher in order to qualify.

2. Upload Documents: Submit soft copies of your KYC, address, and income proof for quick verification. For a smooth process, keep your ID, address, and salary slips handy.

3. Get Approved & Receive Funds:: Once approved, loan amount is transferred directly to your account - on the same day.

Need funds for an urgent expense?

Get a personal loan up to ₹50,000 with quick approval!

Apply Now!

Frequently Asked Questions

What is the minimum income required for a personal loan in India?

Depending on your city, different lenders have different minimum income requirements. For AFI, this income is a minimum of ₹30,000.

Can I get a personal loan with a low credit score with Ayaan Finserve India?

At Ayaan Finserve India, we understand that not everyone has a perfect credit history. We consider applications with lower credit scores (500+) focusing on your current income and ability to repay, making AFI Loans accessible to more Indians compared to others.

How long does it take to get a personal loan approved by Ayaan Finserve India?

At AFI, our process is designed for speed. After you submit your application and all documents on our website – afiloans.co.in, you can receive approval as fast as in 30 minutes, with funds disbursed quickly after that.

Can self-employed individuals apply for personal loans with Ayaan Finserve India?

Currently, AFI personal loan products are tailored for salaried individuals with a stable monthly income. We require salary slips and bank statements as proof of income.