Quick loans have become a popular loan option for people who are in immediate need for money. If people are aware of those, they will be equipped with more details while deciding the kind of loan they should apply for.
The distinct features of the loan include no collateral required, relatively lesser interest rate, minimal paperwork and quick processing. What stops people from applying for such a convenient short-term goal? Like all other loans, this one too has certain eligibility criteria.
Eligibility criteria for a quick loan:
The lenders consider a few pivotal factors while look at the applications for quick loans.
1. The borrower’s income:
The borrower must have a steady source of income to be able to repay the loan on time. Thus, it is necessary to submit details regarding one’s sources of income. Here, employed people have an edge. Unemployed people – older citizens and university students can still apply for a quick loan. They may have to furnish additional documents.
2. The credit history:
Irrespective of the kind of loan, credit history is a common factor that can make or break a loan application. The credit score reflects whether the borrower is capable of making sound financial decisions. Again, those who do not have a good credit score need not get disheartened. Several other factors come into play as well.
3. Job Experience:
Here, the lender wants to know whether the customer changes jobs frequently. How long have they been working in their current position? Some lenders approve the loan only if the borrower has maintained their experience and position for a few consecutive months.
Also, personal details such as marital status and number of kids if any may also be required. All these details help in calculating the disposable income for the borrower.
The lender will most likely check whether you are a citizen of the country. Lenders set age limits for quick loan applicants. They also see whether the borrower is employed in a registered firm.
Contacting one of the lenders will give valuable insights into what are the documents required. Once all the documents are available, all the customer needs is a good internet connection. Using any such device, they can start applying for various firms via online means. As smartphones are overtaking the popularity of laptops by a large margin, lenders have also started launching mobile applications to better facilitate the quick loan application process.