What is the perfect cibil score for an Emergency Loan
An emergency loan is a loan where you get the loan quickly and easily in times of crisis. The crisis can be a
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medical accident
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an unexpected journey due to the death of a family member
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leaky roof repairs, car servicing, motorbike servicing
An emergency loan is available online. Companies and lenders that have a reputation in the market for being reliable have simplified the loan process. Moreover, the interface is as easy as creating a Facebook account.
A question you should consider is if you are eligible for the loan. Eligibility criteria are based on whether a person will pay the loan or not. So the eligibility criteria in India are that you should be a resident of India and therefore have residence proof. Many companies only give loans to salaried employees or people with a stable income. Therefore you may have to present salary slips or bank statements. Another important aspect is the CIBIL score.
What is a CIBIL score?
In India, the CIBIL score is the credit score. It is meant to measure the creditworthiness of an individual based on his history of borrowing credit. A person who has no history of credit borrowing has a CIBIL score of -1. The CIBIL score ranges from 0-900 where a 900 CIBIL score means you are creditworthy. A score lower than 700 makes you ineligible for most loans. However, if you are borrowing a loan from a reliable lender and have a low CIBIL score, you can apply for the loan but it comes with certain terms and conditions.
If you have a low CIBIL score but need an easy cash loan, you will have to pay a higher rate of interest. One way to combat this high-interest rate is to borrow loans for a short period. The shorter the tenure the lower your repayment will be,
How to find a reliable Online Lender?
Online lending in India has shows growth beyond the expectations of the industry.
However, many still hold mistrust for online lenders. India’s market and consumers are a low-trust market and consumers. Building trust is hard for companies and therefore we have companies with high trust branching out into other industries. Therefore it won’t be surprising to find TATA or Jio lending money in the future. The trust they have built has taken them years.
But if you want an emergency loan now, the first thing you should focus on is the reviews of the company on the app store or the testimonials on the website. It helps you navigate and judge the reliability, quality, and speed of the service.
Here is a list of checkpoints you must ensure to find a lender of your choice
- If it is legally allowed to lend
- If it has a physical address
- If it ensures your data’s privacy
- If it has a contact number you can call.
- If the customer service is good.
- If the lender operates in your city of choice
Legality of lending
RBI (the Reserve Bank of India) allows only an NBFC (non-banking financial company), a bank, or a company associated with an NBFC. The company is mandated to mention the NBFC or bank they function under on their websites or the applications. Therefore, keep in mind to check the legal status of the lending company.
Physical Office
Even though the business is online but the day-to-day functioning of the company takes place in an office. Therefore, even a small but legitimate business will have a physical address. Moreover, the address will be mentioned, if your lender of choice mentions it, it a plus-point.
Data Privacy
While lending, the privacy of data is a huge concern that both the business and consumers need to be aware of. If your lender addresses the issue and tackles it actively then it shows the concern that the company has for its user and consumers.
Contact Number
Online lending processes can be confusing, therefore a helping hand is a godsend. Businesses have a dedicated team and infrastructure to address their issues. A website or an app that mentions a number is a reliable business. The quality and speed of customer service is also an indicator of the company’s culture. If the executive is polite and addresses your issues and queries with patience it speaks a lot of the company. Similar to a patient and helpful waiter compared to a rude waiter shows the restaurant’s consideration of its consumers.
The city
If you apply and go through the entire process just to face rejection because the lender does not provide loans in your city then it can be a sour experience. For example- if you want an instant loan in Surat but the lender does not extend its services to Bhopal then your loan application has a high chance of rejection. Therefore, you have to ensure that the lender lends in your city.