Things to know before applying for unsecured personal loan

Urgent expenses can arise anytime, be it school fees, a wedding, foreign trip, or even pursuing higher studies. While your savings might offer some financial support, it might not be enough to cover the expenses at hand. In such cases, an unsecured personal loan can be a reliable financial solution.

For an unsecured personal loan, you do not have to pledge anything like your property, gold or shares. You have the liberty to use it as you want. Today you can get a personal loan instantly online. Since such loans do not require any collateral, they are able to provide quick access to funds, helping you cover your expenses without any delay. 

Key factors to consider before opting for an unsecured personal loan
 

Here’s what you need to keep in mind before applying for a personal loan -

1. An unsecured personal loan requires a strong credit score
 

When it comes to your  eligibility for an unsecured loan, your credit score counts. What is a credit score? It is a 3-digit number, which is calculated based on the payment history, amount of debt, and length of the credit history of a borrower. You have a higher chance of getting a loan approval at favourable terms if you have a higher credit score of 800-850 points.

With IDFC FIRST Bank’s FIRSTmoney smart personal loans, you can borrow up to ₹10 lakhs if you have a credit score of 730 or above.

2. Make sure you meet the lender’s age criteria
 

Before applying for an unsecured personal loan, you need to check whether you meet the minimum and maximum age requirements. The age criteria may vary for salaried and self-employed individuals depending on the bank. To be eligible for FIRSTmoney smart personal loans, whether you are salaried or self-employed, you just need to be between the ages of 21 to 60 years and have a stable income source.  

3. Know your repayment capacity beforehand
 

Banks generally consider the stability of your employment or business, income, cash flow and fixed obligation-to-income ratio, which is a ratio of your monthly income and liabilities, to assess your repayment capacity. Your chances of acquiring a personal loan are high if you have good financial stability.

You can calculate your monthly EMI payment using the personal loan EMI calculator on the IDFC First bank website. With a FIRSTmoney loan, you have the flexibility to choose a suitable tenure between 9 months to 60 months. What makes this loan unique is the zero-foreclosure charge which allows you to repay your loan in full without any penalties.

4. Understand the impact of your loan’s interest rate
 

The personal loan interest rate you get offered often depends on the amount of loan and the tenure you choose. The longer the tenure, the higher the amount of interest. Nevertheless, several banks offer an instant loan at a low interest rate based on the income proof, credit history, repayment capacity and applicant’s relationship with the bank. With IDFC FIRST Bank’s FIRSTmoney, you get an affordable interest rate starting at just 9.99%, making it easy to manage your EMIs.

5. Consider your loan’s processing time
 

Banks generally take about 1-2 business days to process the personal loan application, provided you have submitted all the necessary documents. However, there are instances when the loan is sanctioned within a few hours. For example, with a FIRSTmoney loan, you can conveniently get funds within a couple of hours of applying for the loan. Moreover, you can opt for multiple on-demand loans to meet additional funds requirements with just a single application.

Still wondering if an unsecured personal loan is right for you?
 

Unsecured personal loans offer a convenient and reliable way to handle financial emergencies—without pledging security. With IDFC FIRST Bank’s FIRSTmoney, you can experience the ease of digital applications, instant approvals, competitive rates, and the flexibility to borrow more through on-demand loans. Whether you need funds for education, travel, or an urgent medical need, FIRSTmoney makes the borrowing journey simple and stress-free.

So, apply for a personal loan with FIRSTmoney and meet all your financial obligations with ease.