It is the best time for women in India to get finance. The modern banking system and FinTech introduced personal loans for women.
These loans are extremely helpful and easier to get than traditional bank loans. Keep reading if you are searching for a suitable finance option to afford your education, wedding, or business expenses.
What Do You Mean by Personal Loan for Women?
Banks and NBFCs offer special personal loans for women so you can fulfil your aspiration with minimum inconvenience and hassle. The paperwork for these loans is hassle-free. The interest rates are also quite reasonable. In modern times, loan for women in India does not require collateral or a guarantor in most cases.
What are the Benefits of Personal Loans for Women in India?
These are the 5 main advantages which you can enjoy by taking a personal loan:-
- No Need to Arrange Collateral
You can get a personal loan without collateral up to around 20 lakhs. This saves a lot of hassle of arranging gold or property as collateral which can be challenging for some people.
However, in the absence of collateral, your regular income and financial stability take the front seat in terms of getting your loan approved. So your earning records must be intact.
- No Official Declaration Required
Personal loans are the best as you don’t need to explain any particular reason for applying for these loans. You can use the loan amount according to your preferences.
For instance, you can utilise a major part of your loan amount for your education and some for a vacation. You don’t need to declare that officially. This gives a lot of flexibility and ease.
- Less Time Taken to Approve Loans
Instant disbursal of the loan amount is a significant advantage of personal loans for women. This is because a personal loan is generally required in desperate times only.
That means the applicant needs money urgently. The rise of FinTech and AI has paved the way for instant disbursal of personal loans within a few days and even a few hours in exceptional cases.
- Attractive Interest Rates
The interest rate of a personal loan largely depends upon 2 things – The applicant’s overall profile, including credit score, and the lender policies.
However, most lenders who recognised the potential of women kept comparatively lower interest rates to encourage more women to become financially independent.
- Choice of Repayment Tenure
You can choose the loan repayment tenure you wish. There is a lot of flexibility provided by lenders in that sense for personal loans.
But remember, the longer your loan repayment tenure is, the more interest you pay. However, there’s always the option to get a longer repayment tenure if your monthly budget doesn’t allow you to pay a higher amount in EMI.
What are the Mandatory Criteria for Women to Get a Personal Loan?
Following are the general eligibility criteria for getting a personal loan. This may differ up to some extent from lender to lender.
- A credit score above 750 is good enough for you to get a personal loan. It’s not a strict eligibility criterion. Some banks and institutes may give you loans below this score as well. But the interest rate for such loans is usually higher.
- Your total employment record must be at least 2 years with any private/government company. And you must be employed with your current employer for at least a year.
- You should not be more than 60 years of age at the time of loan maturity.
- Your age must be 21 years or above when applying for a loan. The maximum age limit when applying for the loan is 58 years.
- Your monthly income must not be below ₹15000, and you must have income proof.
- You need to be a citizen of India.
Money is a vital tool for gaining freedom. Personal loans give ladies the freedom to be in charge of their life decisions by bearing their costs.
The benefits of personal loans for women are immense, and the eligibility criteria are also simple. All you need is a regular income with a good track record to get instant finance with customised tenure and interest rates.