All You Need To Know About Personal Loans For Women - Loan Trivia

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Tuesday, 13 April 2021

All You Need To Know About Personal Loans For Women

 


Due to increased financial independence, India is witnessing a drastic surge in the number of women borrowers. As per the data shared by TransUnion CIBIL in 2020, more than 30 million women availed credit.

The growth in the number of women borrowers can be accredited to several factors, including ease of availing credit online and relaxed borrowing requirements. Amidst all, borrowing options like a personal loan for women has become the most popular financing sources. 

  • The personal loan segment comprised 15% women borrowers.

  • States like Maharashtra, Tamil Nadu, Telangana, and Karnataka contributed approximately 38.6% towards women's personal loan borrowings.

It is mostly the accompanying features and requirements of personal loans for women that make it a useful borrowing option these days. Nevertheless, to make the most of this financing option, it is essential to gain substantial information about it to streamline one's borrowing experience. 

Salient features of personal loans for women

Typically, personal loan for women comes with these features –

  • High loan value 

Most financial institutions extend a high-value loan of up to Rs.25 lakh to borrowers. The high sanctioned amount allows borrowers to meet their financial obligations effectively.

  • Collateral-free and zero restrictions

Being an unsecured financing option, individuals do not need to pledge any asset as security to access funds. Also, the fact there are no restrictions on how a borrower decides to use the sanctioned funds makes it a flexible financing option.

  • Interest rate and other charges

Leading financial institutions provide a preferential rate of interest to women personal loan applicants. However, the same also depends largely on factors like –

  1. Applicant's age

  2. Creditworthiness

  3. Income and source of the earnings

  4. Loan amount

Generally, an applicant should improve one's CIBIL score to secure a low-interest personal loan. Women may also consider availing a loan from financial institutions like Bajaj Finserv to enjoy a transparent loan application process.

Usually, such NBFCs provide customers with pre-approved offers helping reduce the hassle involved with the loan application process. The said offers are available on financial products like personal loans and business loans. Check your pre-approved offer now with the help of name and contact details.

While at it, they should find out how personal loan applications are processed to streamline the same.

  • Simple eligibility criteria and documentation

Ideally, a personal loan for women can be availed by individuals with a stable source of income, a clean credit history and a high CIBIL score, preferably more than 750. Nevertheless, to negotiate better terms individuals should try to improve their personal credit score.

Also, they must belong to the age group of 23 to 55 years. Nevertheless, different financial institutions require applicants to meet additional criteria to avail this credit.

To back up one's personal loan eligibility and to initiate the verification process individuals need to submit a basic set of documents, namely –

  • KYC documents

  • Salary slips of last two months

  • Employee ID

  • Bank statement

Notably, both eligibility criteria and required documents may vary from one NBFC to another. One must find them out beforehand and then look at how to apply for a personal loan.

  • Repayment tenure

 Generally, a personal credit for women comes with repayment tenure of 60 months. A borrower should pick a tenure that suits her repayment capability and does not strain her disposable income. Ideally, a longer tenure attracts a higher interest rate but a low EMI amount. To pick an ideal tenure, one can use a personal loan calculator online. 

Other than these, leading financiers provide quick loan approval and tend to disburse sanctioned amounts within 24 hours*. This proves useful in situations when borrowers need urgent funding. 

  • A TransUnion CIBIL report claimed that the number of credit conscious women is increasing at a rapid pace. 

This has not only pushed the demand for a personal loan further but has also lowered the delinquency rate prevailing among women borrowers significantly. Individuals who plan to avail a personal loan for women can leverage their creditworthiness to negotiate better payment terms.



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