3 Personal Loan Tips for Beginners to Follow in 2022 and Beyond

Why take a personal loan? It can help finance a range of expenses like medical expenses, unpaid mobile phone bills, holiday expenses, unpaid taxes, loan dues, rental deposit, a 2/4-wheeler purchase, etc. You can apply for a quick personal loan from a fintech company for such urgent cash requirements. 

The application process, including documentation, is digitised and happens fast on the lender's instant small loan app. You can download it on your Android or iOS device. Once the loan is approved, it's disbursed to your bank account within a few minutes. You need not submit collateral against the loan. 

If you're a beginner, you can keep certain things in mind to boost your chances of getting a loan or repaying it conveniently. So, here are three personal loan tips to follow in 2022 and beyond. 

Look for Alternatives to a Traditional Credit Score 

If you're a beginner as a borrower, you may not have a typical credit score. You wouldn't have a loan repayment history. It can be challenging to get a loan from a traditional financial institution or a bank since the lender would assess your creditworthiness based on your credit score. 

However, if you apply for a quick loan from a top fintech company, your creditworthiness would be determined using a modern credit rating system called the Social Loan Quotient (SLQ). The SLQ is evaluated using artificial intelligence, smart data analytics, machine learning, and unconventional factors like your smartphone metadata and social media footprint along with your credit score. Other simple factors include your KYC details, educational qualifications, career experience and monthly salary. So, beginners can get a quick loan easily by being KYC compliant, boosting their social media presence, and well-paid jobs. 

Borrow a Small Amount 

If you're new to borrowing loans, it's best to start safely. Opt for a small loan amount if you don't require heavy funds. A small amount is also easier to repay. You apply for a microloan starting from ₹1,000 only on an instant small loan app. However, if you need more funds, you can borrow up to ₹4,00,000 from certain fintech companies. 

Opt for a Short Tenure 

Settling for a long tenure gives you peace of mind that you can repay the loan easily. However, if your repayment capacity is low, choose a small term. If you can't assess your repayment capacity, a reputed fintech company can help you.

Its instant small loan app offers flexible tenures (90, 180, 270, 365 and 540 days) for different loan amounts and eligibility (in terms of monthly salary). For instance, a personal loan of ₹1,25,000-₹4,00,000 is available for 540 days with a monthly eligible wage of ₹50,000. So, choose a suitable tenure based on your monthly salary and the loan amount. 

Conclusion 

Simply follow the above tips to increase the chances of getting an instant personal loan from a fintech company and repaying it smoothly.