An overview of payday loan in India

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We all might have faced the situations when there is sudden need of money due to some unexpected reasons. These reasons include delay in the salary, emergency medical expenses, home or vehicle repair, paying off the bills or old debts and many more things. Managing these types of situations becomes extremely difficult at times even if the amount needed is small. The traditional money lending options like banks cannot provide you the money on urgent basis due to their lengthy approval process. However, you don’t need to worry any more in the financial emergency as the option of payday loan in India is open to take you out of this situation. This type of loan is also called small cash loan. Let’s try to know about few important things related to this loan.

How much amount can be borrowed?

The amount you can borrow depends upon your monthly salary and your repayment capability. This amount lies between Rs. 10000 and Rs. 50000.

Who can get the payday loan in India?

As the repayment of the loan is done through the salary, only a salaried employee can get this loan. The person has to be an Indian citizen with age of 25 years or above.

What is the minimum Salary limit?

The minimum salary limit varies from financier to financier. However, generally the minimum monthly salary drawn by the person should be Rs. 25000 or above. If your salary is less than this limit, then you have to check some other options.

Are there any disqualifiers?

Yes, there are certain situations when your payday loan is not approved. If you have so many debts to repay at that time, if the financier is unsure of your repayment capacity or if you don’t fulfill any of the eligibility criteria, then you cannot apply for the payday loan or your loan will not be sanctioned.

What should be the CIBIL Score?

Many of the financiers who provide payday loan are not giving importance to CIBIL score. They sanction your loan based on your monthly income only. However, there are still many who are particular about the CIBIL score. To get payday loan in India you need to have CIBIL score between 600 and 650.

How much time is required for approval?

This loan is approved within a very short period of time. You just need to submit all the required documents including salary slips and bank statements of past few months and identity proof along with application form. The assessment of the documents is done very quickly and loan is approved even within an hour’s time. The loan amount is credited in your bank account on the same day. Therefore, this loan is perfect for the emergency money requirement.

What are the interest rates and repayment tenure?

The interest rates are fixed and sound. They may vary depending upon the loan amount and repayment tenure. The repayment period for the payday loan is of 3 months. You can repay the amount anytime during this period. Still, you must check the terms the condition regarding the repayment with your financier as they may be different for different financiers.

So if you are in a financial emergency, opt for payday loan to get the quick money.