We all experience a financial crunch when our monthly expenses go over the limit. Instant loan applications are the ideal solution to save you from those inconvenient cash crunches. Since there is no need for physical documentation or even to meet in person to get your loan, it takes less time for the loan approval, after which the amount is disbursed straight into your account. The time taken for loan approval depends from one app to another.
What makes Fibe so popular?
Fibe is preferred by young employees because of its speedy disbursal of loans and user-friendly interface. It is the ideal alternative that provides several benefits through a secured online loan app. Fibe provides instant loans to users with less documentation, as long they procure a salary of Rs 18,000 or more every month. Those qualified can apply for loans from Rs 5,000 up to Rs 5 lakh, for rates as low as Rs 9 per day. Fibe has partnered with Amazon and Flipkart for shopping loans too.
Why should you use the EarlySalary app?
Online loan apps in India are now beyond the niche stage. Instead, they’ve rapidly become popular due to the many benefits they provide – customized repayment plans, easy loan plans, the simple application process, and 24X7 tracking. With Fibe, customers enjoy a quick, paperless, and trouble-free way to get personal loans and a one-stop solution during a financial emergency. One of the biggest challenges that people always face is having to visit a bank for loan purposes. Standing in long queues, going through a lengthy documentation process, and then preparing rounds of security checks before finally getting the loan approved. With the introduction of online loan apps such as Fibe, getting personal loans has become easier and convenient. These are the reasons why Fibe is one of the most preferred loan applications in India!
Quick loan approval: Fibe provides fast approval facilities to its users. When you apply for a loan on the app, you will see whether loans are getting approved, or how the repayment plan is chalked out, or how much you can apply for in a shorter duration. This is very different from what happens if you approach a bank: you can fill out a form online, but it may take you a while to get a response (someone may need to review the request, and you may even need to visit a branch in person).
Better interest rates on loans: The interest rates at EarlySalary won’t make a hole in your pocket. It not only provides lower interest rates but also reduced service costs (if any). They have no comparable overheads with local branches as bankers do not have the same regulatory costs. That means that you end up paying a fraction of overhead and additional costs.
Easier approval: Banks have become increasingly cautious over the years. It’s easy to get a loan if you have excellent CIBIL, but you don’t get any benefits if you have a low CIBIL score. However, online apps like EarlySalary may accept weak CIBIL scores and use “alternative” ways to establish your worth.
Saves time: In banks, you may have to monitor the process and wait for days to get your loan approved. Applying for loans from banks can turn out to be a long, taxing process. It is not only frustrating but also time-consuming. But when it comes to EarlySalary, the application and approval process is fast and easy, saving time, effort, and money.
Loans without collateral: Loan applications on Fibe do not need collateral. Banks almost never provide loans without collateral. . Borrowing is, therefore, safer. When you don’t repay an unsecured loan, your CIBIL values drop, but your assets won’t be taken back and forfeited.
Keeping all the above advantages in mind, Fibe stands out from its competitors, making it one of India’s most preferred loan lenders. You can contact us for any queries on instant loans, instant credit score checks, and much more!
Moving to an entirely new city with no family support and warmth from your friends can get on your nerves. In contrast to our hometowns, most metro cities are typically taxing, making it harder to live and handle your expenses. You will need to manage a lot on your own. While we’ve shared money management tips for the festive season and for millennials, some tips on money management in metro cities, should hopefully help make your experience throughout the year, an easier one. We’re happy to help:
Affordable lifestyle – The most substantial expenditure on your budget comes in selecting a place to live. You have different choices for living in most of the towns. The rent prices differ depending on the location. Few cities have lovely spaces for co-living, such as Bangalore, Mumbai, Delhi, where you get most of the necessary facilities at very affordable prices. So do your homework and find yourself a suitable budget spot.
Make your food – Eating food outside can harm both your budget and your body. Instead, cook safe and inexpensive meals at home for yourself. It will save a lot of money for you and keep your body safe and happy. If you’re someone who doesn’t know how to cook, you can hire a cook who turns out to be a much cheaper choice than frequently eating outdoors.
Cut back on subscriptions every month – It is not necessary to have subscriptions for every OTT platform. You can save a lot of money by cutting back on subscriptions. These subscriptions take a chunk out of our budget. It will help you reduce the extra expenses in the short term.
Using local transit – Try to commute using the different local transport options instead of resorting to a private vehicle. Major cities have a sizable local transit network that is reasonably accessible and will not leave a dent in your pocket. Take a bus to work or a shared vehicle, or you can also avail office cab services. This alternative again turns out to be pretty cheap compared to owning a car if your city has a metro train service.
Get an instant cash loan from Fibe – If you ever run short of cash, you can always avail of the instant cash loan from Fibe. Download the app on your mobile, and it’s easy to use. Fibe can be that friend that you can always trust when in need.
6. Get into a Part-time job – In spending some extra time to earn some extra bucks, there is no harm. You can check out several job websites where you can make money while sitting at home and working. Even an hour of daily work will give you 4-5k per month.
7. Keep some money for small investments – Try putting some money as an investment per month after setting aside some cash for monthly expenses. Be sure to set aside any money in a fixed deposit or savings account, be it as little as 100 or 500 bucks. It will give you some financial protection, and in case of any emergencies in life, you will still have some number.
Staying alone in a new city encourages you to consider yourself and your limits and guides you to find ways to cope with every challenging situation. If you can master the art of balancing your budget, then in every city you go to, you’ll have a great time. So go out and enjoy life there but don’t forget to keep the Fibe app handy!
Feel free to contact us for any questions on credit, loans, and your instant cash needs!
Download the instant loan app here, or log in to our website and experience the Credit Suite.
For Fibe, this was a logical evolution of all that we have done so far. After all, our goal has been to assist professionals in their quest for a happier life, backed by financial independence, and of course, the ability to meet emergency needs.
At Fibe, we were beyond excited to announce the introduction of Fibe Credit Suite, a one stop credit solution for all. After all, our Credit Suite is packed with Instant Loans, Personal Loans, a Free Credit Score check, and an all new ‘Salary Card’.
The EarlySalary Credit Suite’s Makes Your Loan Life Simpler
Short term loans with a cap of 8000 to 5 lakhs
It’s a rapidly changing digital era we live in today, and Fibe provides a genuinely new, realistic personal loan alternative. No prolonged paperwork, instant processing times, competitive interest rates, with no fees for prepayment. Lend up to 5 lakhs and have them transferred within minutes to your bank account.
With 12-month to 36-month EMI options, long-term personal loans
You get a window of 12 to 36 months to pay your long term personal loans. You can increase the EMI amount as per your convenience.
The free credit score facility gives a comprehensive snapshot of an individual’s credit financial status
To find your credit score for free, all you have to do is download the Fibe app. Once you know your credit score, you can apply for personal loans upto Rs 5,00,000 from the app. The approach requires zero physical documentation. You would be required to upload scanned photos of your Aadhaar Card, Voter ID, Passport, Pan Card and a passport size photograph.
The all-new digital Salary Card allows clients to use credit solutions with different personalized features
The ‘Salary Card’ allows customers to set a credit limit to suit their essential needs and expenses like traveling, shopping, medical, etc. Since the ongoing pandemic has created a demand for contactless payments that is here to say, we felt compelled to introduce a digital zero-touch ‘Salary Card’ that could provide you with safe and secure payment solutions.
Buying on EMI allows buyers to make payments during the checkout at the ‘Pay Later’ option
Purchase what you want online and pay it back in simple 3 or 6 monthly installments. Whether it’s appliances, electronics, or household products, you can buy now and pay later from Fibe.
Fibe has impacted many lives on this 5-year journey and has undoubtedly helped several first-time working professionals adjust to a new career, a new city, and all the other challenges we face as we tackle our ambitions. Fibe hopes to cater to more customers as consumer aspirations rise and become a lender of choice for every salaried professional in India.
The Fibe team took several steps to give users a better credit experience over the years. And the introduction of the ‘Credit Suite’ is just another small move that has brought a change in consumer credit experience.
Feel free to contact us for any questions on credit, loans, and your instant cash needs!
Download the instant loan app here, or log in to our website and experience the Credit Suite.
Both businesses and individuals often require credit. And this need has traditionally been fulfilled by banks (and their overdraft facilities) and large, established institutions. But thanks to advancements in several areas – technology, a rising startup ecosystem, and even market demand, short-term credit via loan apps have gained much popularity in addition to traditional methods such as bank overdrafts. With multiple credit options available, the answer to which one is the best amongst them would simply depend upon the requirements and preferences of the customer.
A bank overdraft is essentially a credit extension from a financial institution that enables account holders to withdraw money even when the funds available in the bank account are insufficient or at zero balance. It typically works like a loan.
On the other hand, loan apps, such as Fibe (formerly EarlySalary), provide instant credit to customers via an online application process.
Here’s a closer look at the finer differences between the two.
#1 Who can avail?
A bank overdraft facility can be availed by account holders who meet certain eligibility criteria that are determined by the bank, such as creditworthiness and the type of collateral. Overdrafts can be available against fixed deposits, salary, shares, bonds, property, or traditional insurance policies.
However, there are many customers whose credit scores may be insufficient to guarantee them access to bank overdrafts or other traditional credit options. This is where the digital credit ecosystem, with its features such as loan apps, has been making its footprint. Loan apps such as Fibe offer easy access to instant credit for salaried employees. Therefore, credit via loan apps can be availed by a wider range of people as compared to a bank overdraft.
#2 Withdrawal Limits
For bank overdrafts, the withdrawal limits are set by the lending institution based on the creditworthiness of the account holder. This may vary from person to person. Loan apps too can have different withdrawal limits. Fibe, for instance, allows customers a flexible personal loan amount starting from Rs. 8,000 up to a limit of Rs. 5,00,000. Therefore, while the withdrawal limits can often vary, bank overdrafts can generally offer greater limits if the eligibility criteria are satisfied.
#3 Charges
Bank overdrafts seem to have a certain advantage when it comes to charges. There are no pre-closure charges and the customers are required to pay interest charges for the time and amount that they use.
However, there is a demerit to this – if the customer crosses an agreed limit, then they could risk high costs. Moreover, defaults would spoil the customer’s credit score. In this regard, loan apps can often have interest rates or fees that are a bit on the higher side. Fibe, however, does not have any prepayment charges and offers attractive interest rates.
#4 Speed
Being a traditional finance method, the application and approval process for getting a bank overdraft may be slightly longer as compared to loan apps which have a very short, online application process that requires minimal documentation. At Fibe, you can get an instant loan in 10 minutes.
Bank Overdraft vs Instant Loan Apps: Which One Should You Pick?
It is evident that the right option for availing of credit would be the one that better suits your needs. Someone with a stable salaried job and a good credit score may prefer a bank overdraft while someone who does not have a good credit score would have to go for loan apps. Moreover, if you need instant credit without hassles, loan apps offer an easier online application process with quick approval.
One could say that the loan app is largely targeted at salaried millennials who may be looking for salary advances as alternatives to bank loans. All the same, it is always imperative to do one’s research and evaluate one’s needs while seeking credit. If you are clear about your requirements, the choice between loan apps and bank overdraft can be quite obvious.
Feel free to contact us for any questions on credit, loans, and your instant cash needs!
Download the instant loan app here, or log in to our website and experience the Credit Suite.
According to a report on Millennials, by Morgan Stanley Capital International (MSCI), on a global level, millennials represent around 23% of the world population. millennials have a wide range of access to and knowledge of recent technologies, along with a fair idea of the investment options open to them. Even then, it is a tactful task to know where to invest, how much to invest, and which investment options would be the best suited for them. This post is aimed at providing investment advice to new investors, addressing the whats, the whys, and the hows of investing as a millennial. But first, let’s address some fundamental questions:
Why Should A Millennial Invest?
Millennials are likely to feel that they don’t have adequate knowledge about the market, or that it is out of their capacity to invest and take risks. As a millennial, if you’re still indecisive about investing, here are a few reasons why you should consider investing.
Time Is On Your Side – A great advantage that millennials have is that they have a good amount of time to accumulate wealth. Millennials can maximize their returns through compounding, a process to potentially boost your savings, by investing in the market over a long period of time.
Put Your Money To Work – As a millennial, if you keep a mindset of letting your money stay stacked up in a bank, it will slowly lose its value due to inflation. In contrast, if you invest, you can get returns, thus achieving your financial goal faster.
Save Money On Tax – You can get certain tax advantages from some investment accounts, like an Equity Linked Savings Scheme, or a PPF. Your contribution there reduces your annual taxes.
Source: Reliance Securities
What Should A Millennial Keep In Mind Before Investing?
Investment can be a tricky task for someone just starting out. Therefore, it is essential to know all the aspects involved in investing your money. As a millennial, here are five investment advice to keep in mind before jumping in:
Plan Before Investing – It is crucial to know what the primary reasons are for you to start investing. Are you just trying it out with a small amount of capital? In this case, you can afford to have a larger risk appetite. You will need to be much more thoughtful about where you invest if you’re pouring your life savings into it. However, with this sorted, you will find it easier to decide how much to invest and which investment options to select. To help you with this, you can also approach a financial advisor.
Take Calculated Risks – You have to keep in mind that, to move forward, you will have to take risks. Hence, to reach your financial goals, do not back down from taking certain calculated risks. However, these should not be risks that will put you in a precarious financial situation if things go south.
Choose Investment Options That Suit You – While you are narrowing down on investment avenues, you should level your expectations with the projected returns of the investment scheme. You can consult a financial advisor to provide you with in-depth investment advice, like choosing a particular investment option from a wide range like investing in mutual funds, stocks, public provident fund (PPF), retirement plans etc.
Design Goal Oriented Investments – If you are focusing on achieving immediate, short-term, or smaller financial goals, then your choice should be to invest in short-term funds or schemes. On the other hand, if you are planning on achieving larger and far-reaching goals, you need to beat inflation by making long-term investments.
Avoid Debt-trap – As a general trend, millennials are drawn to quick success without much thought to the probable drawback of that. Since investments are a quick way to financial success, therefore millennials tend to fall into debt to invest in schemes.
How Can Millennials Invest Their Wealth
Amongst millennials, there is a trend of diversifying in several avenues. If you are a millennial, the best investment advice for you will be to invest in equity, retirement funds, mutual funds and insurance, and public provident funds. Here is a more detailed explanation of the available options.
Equity/Stocks – In the long run, if you want to make investments seeking high returns, you cannot ignore the stock markets. Older millennials usually make higher direct equity investments. The richer millennials invest nearly double that, as higher income levels provide a cushioning that enables people to take a greater risk. However, this option has the greatest risk.
Mutual Funds – One of the favorite investment options of millennials, irrespective of their income bracket or age, are mutual funds. The reason for this is the organized management, the ease of investment, and the availability of several funds. Most choose to commence their mutual fund journey in tax-free investments like an Equity Linked Savings Scheme (ELSS). This category is best for long-term investments.
Insurance And Retirement Plans – If as a millennial, any of your concerns revolve around advancing age and the pitfalls related to it, then the best option for you is insurance and retirement plans. You can subscribe to a suitable life insurance plan, which can also act as a financial safety net for the members of your family. Along with that, it is also beneficial in saving money on taxes by investing in insurance.
Public Provident Fund – PPF is one option a lot of millennials consider. PPF has a tenure of 15 years, which is beneficial for millennials because they have a considerable amount of time in their hands. Furthermore, because the interest acquired and the principal invested is supported by a sovereign guarantee, this makes PPF a safe investment.
Conclusion
As a baseline, even though investments need to be made carefully, a millennial should open up to investing their wealth in mutual funds, retirement, and insurance plans or equity because they will get higher returns than just a savings account, and consequently save on taxes. Millennials should start early so that they can utilize the time in a planned way. For more on how to start (and maintain) your financial journey, head over to the Fibe blog.
Feel free to contact us for any questions on credit, loans, and your instant cash needs!
Education opens up more opportunities than any other investment ever well, as many doting parents would agree. Getting the best education indeed opens doors with no other keys. Oprah Winfrey has rightly said, “Education is the key to unlocking the world, a passport to freedom.” Parents wish the best for their children, and education tops that list. Children can be molded into their best versions through education.
Steps to save and invest for your child’s future
One must ensure that one is financially prepared to enhance their child’s possibility of getting the best possible education. If the plans are made in an orderly manner and in advance, chances are that your child’s dreams and ambitions wouldn’t be compromised.
The decision on time horizon: Achild’s education should be considered as a long-term goal. The earlier it’s planned, the better results it will fetch. Anticipate the total time period of your child’s education from the present time, let’s say another 20 years of education. This will allow you to decide and save the right kind of funds which will suffice enough to provide the best to the child.
Cost estimation: Inflation is at a high and is rising every year. The costs differ from location to location, but it is undoubtedly higher in metro cities than non-metros. Further, private schools are seen to be quite expensive in comparison to public schools. In 2018, premier B-schools increased fees to Rs. 21 lakh for their two-year flagship courses, which was worth Rs. 6 lakh in 2008 i.e., average inflation of 13%. The prices of prestigious foreign universities are soaring high while school education is taking up a massive chunk of parents’ income. Further, it’s not just the fees of the educational institutes, but also involves other related expenses like accommodation, costs of material required, transportation, medical expenditure, etc. too.
Assessing your financial position: Understand and assess your current financial status. This will help you in planning better and saving adequately for your child’s education. This will also help in understanding how much to be saved to start your fund. Analyze your present investments considering future benefits. Savings can be done systematically by keeping a certain amount aside regularly.
Planning the investments:Asset allocation schemes are the best way to invest. Since your financial position and potential are already mapped, you can make better investment decisions. Investment should be made in funds that can counter inflation and also fulfill your needs. If you start early, the amount invested can be less. The strategy should keep on changing every few years with your child growing up. SIPs can be increased in bits to reduce investment. Avoid low return investments.
Insure yourself: Insurance should be considered as protection first and then as an investment. In case of an untimely demise, insurance will keep the family and your child’s education plans afloat. The life cover should be a good percentage of your current income. Optimally insure for not just life, but also for the health of all the family members, which has become so necessary in the current times of the pandemic.
Final Action
Prepare for the unexpected. Nobody has foreseen the future, but you can secure your and your child’s education by taking corrective actions right now with a holistic approach. Fibe enables paying your child’s school fees through EMIs with a credit limit of up to Rs. 5 lakhs. It is easy to use, has flexible repayments, and is one of the country’s leading education programs. School FeES – Fibe is designed to streamline the fee deposit process in schools easing the parents. With real-time onboarding and disbursal, EarlySalary is the way to go!
Of course, children’s education is crucial, and money shouldn’t be a deterrent. Every child is unique, and so is their dream!
Feel free to contact us for any questions on credit, loans, and your instant cash needs!
Download the instant loan app here, or log in to our website and experience the Credit Suite.
You can get a personal loan with a low CIBIL score in 2026, but approval may depend on more than your score alone. Lenders can also assess your income, employment stability, repayment capacity, current EMIs, banking behaviour and overall financial discipline. A low CIBIL score may reduce approval chances or lead to stricter terms, but it does not always mean automatic rejection.
For example, a salaried employee with a score of 620 but regular salary credits, low existing EMIs and no recent bounced payments may still have a stronger application than someone with a higher score but unstable income. Similarly, a self-employed applicant with a low score can improve eligibility by submitting bank statements, ITRs and proof of consistent business income.
Personal loans can help during urgent financial needs such as medical expenses, home repairs, wedding costs, education fees or debt consolidation. Since they are unsecured loans, lenders carefully check your creditworthiness before approval.
What is a Low CIBIL Score for a Personal Loan?
A CIBIL score is a 3-digit number that reflects your credit history and repayment behaviour. It generally ranges from 300 to 900. For most personal loans, a score of 750 and above is considered strong because it shows responsible credit behaviour. A score below 650 is usually seen as low and may indicate delayed payments, high credit utilisation, multiple loan enquiries or limited credit history.
However, credit scores are not the only factor. RBI’s credit information framework recognises the role of credit information reports in fresh credit decisions, while also giving consumers the right to access their credit report and seek corrections in case of errors. This is important because an incorrect overdue entry or wrongly reported loan can affect your loan eligibility.
CIBIL Score Ranges and Their Impact on Personal Loan Approval
Good approval chances, subject to income and lender policy
650–699
Fair
Approval may be possible, but rates or documentation needs may be higher
600–649
Low
Higher rejection risk; lender may ask for stronger income proof
Below 600
Poor
Approval can be difficult; secured loan or co-applicant may help
No credit history
New to credit
Approval depends on income, employment and alternate assessment
Know CIBIL Score and Its Impact on Personal Loans
Your CIBIL score gives lenders a quick view of how you have handled past credit. It is influenced by repayment history, outstanding dues, credit utilisation, credit mix and recent enquiries. TransUnion CIBIL’s personal loan score framework considers factors such as overdue amount and repayment behaviour to assess credit risk.
Here’s how it usually impacts your application:
High score = better approval odds: A score of 750+ can improve your chances of approval and may help you get better terms.
Low score = higher lender risk: A score below 650 can lead to stricter checks, higher interest rates or rejection.
Mid-range score = conditional approval: Scores between 650 and 749 may still be accepted if your income and repayment capacity are strong.
Real-life scenario
Suppose Ravi earns ₹55,000 per month and already pays ₹22,000 in EMIs. Even if his score is 690, a lender may hesitate because nearly 40% of his income is already going towards debt. On the other hand, Neha has a score of 640 but earns ₹70,000 per month, has only one small EMI and maintains stable bank balances. Her approval chances may be better because her repayment capacity looks stronger.
How to Get a Personal Loan Without Relying Only on Your Credit Score?
Even with a low score, you can strengthen your loan application by proving that you can repay comfortably.
1. Show Stable Income Proof
Submit recent salary slips, bank statements, Form 16 or ITRs. Regular income reassures lenders that you can manage EMIs.
Example: If your CIBIL score is 610 but your bank statement shows regular salary credits and sufficient balance after expenses, your profile may still be considered.
2. Apply for a Lower Loan Amount
A smaller loan reduces lender risk. Instead of applying for ₹5 lakhs immediately, applying for ₹1 lakh or ₹1.5 lakhs may improve approval chances.
3. Add a Co-applicant or Guarantor
If your score is low, a co-applicant with a good credit score and stable income can support your application.
Example: A newly employed borrower with a limited credit history may apply with a parent or spouse who has a stronger repayment record.
4. Maintain a Healthy Debt-to-Income Ratio
Try to keep total EMIs within 40–45% of your monthly income. This shows that you are not overburdened.
5. Avoid Multiple Loan Applications
Every hard enquiry can affect your credit profile. Multiple applications in a short period may signal credit hunger and reduce approval chances.
6. Choose Lenders with Alternate Credit Assessment
Some digital lenders assess income, banking patterns, employment stability and repayment ability along with your CIBIL score.
7. Consider Secured Loan Options
If an unsecured personal loan is difficult, you may explore loans against FD, gold or other collateral. Since the loan is backed by security, approval may be easier.
How to Improve Your CIBIL Score for a Personal Loan?
Improving your CIBIL score takes time, but consistent repayment habits can make a visible difference.
1. Pay EMIs and Credit Card Bills on Time
Payment delays can affect your score. Set auto-debit reminders to avoid missing due dates.
2. Reduce Credit Card Utilisation
Try to keep usage below 30% of your credit limit. If your limit is ₹1,00,000, keeping outstanding dues below ₹30,000 is a healthier practice.
3. Clear Overdue Amounts First
If you have pending dues, clear them as soon as possible. Overdue amounts are a red flag for lenders.
4. Avoid Frequent Loan Enquiries
Apply only after checking basic eligibility. Too many enquiries can make lenders cautious.
5. Check Your Credit Report Regularly
RBI has highlighted the importance of access to credit reports for individuals. Review your report for errors such as closed loans showing active, incorrect overdue amounts or duplicate accounts.
6. Raise Disputes for Incorrect Entries
If you find an error, raise a correction request with the credit bureau or lender. An incorrect negative entry can affect your personal loan eligibility.
7. Build a Positive Repayment Track Record
Start small, repay on time and gradually build trust with lenders. For new-to-credit users, even small credit products can help create a repayment history.
Why Choose Fibe for a Personal Loan with Low CIBIL Score?
Fibe makes the personal loan journey faster, simpler and more accessible for eligible customers. Instead of evaluating only one factor, Fibe may assess your broader repayment ability to help you access credit when you need it.
Quick digital application process with minimal paperwork
Fast approval and disbursal for eligible customers
Flexible repayment options to manage EMIs comfortably
Useful for urgent needs such as medical bills, travel, education, home repairs or debt consolidation
Alternate eligibility assessment that may consider more than just your CIBIL score
A low CIBIL score should not stop you from exploring responsible credit options. With the right documents, realistic loan amount and disciplined repayments, you can manage your current need and work towards improving your credit health.
FAQs on Personal Loans with a Low CIBIL Score
1.How to get an NBFC personal loan with a poor credit score?
You can apply with an NBFC or digital lender that considers alternate data points along with your credit score. Fibe assesses your eligibility and repayment ability before offering a personal loan.
2. What is the optimal credit score required when availing a personal loan?
A CIBIL score of 750 or above is generally considered ideal. However, some lenders may also consider lower scores if your income, employment stability and repayment capacity are strong.
3.What is considered the lowest score for personal loan approval?
There is no universal lowest score for all lenders. Many banks may be cautious below 600, while some NBFCs or digital lenders may still evaluate your profile based on other eligibility factors.
4.Can I improve my CIBIL score?
Yes. Pay EMIs on time, clear overdue dues, reduce credit card utilisation, avoid multiple applications and check your credit report regularly.
5.Can I get a personal loan with a CIBIL score of 550?
It may be difficult, but not impossible. You may need strong income proof, a lower loan amount, a co-applicant or a lender that uses alternate credit assessment.
6.What documents are required for a personal loan with a low CIBIL score?
Common documents include PAN card, Aadhaar card, address proof, salary slips, bank statements and income proof. Self-employed applicants may also need ITRs or business income proof.
7.Does Fibe check CIBIL score for personal loan approval?
Fibe may check your credit profile as part of the loan evaluation process. However, it may also consider other factors such as income, employment details, banking behaviour and repayment capacity before making a decision.
Wedding season is around the corner, and no one does weddings better than we Indians do with the whole “big fat Indian wedding” – a larger than life setup, designer outfits, extensive guest list, and a never-ending food menu. Since weddings are arguably one of the most memorable days for the bride and the groom and their near and dear ones, it deserves to be celebrated on a grand scale, fulfilling the couple’s lifelong dreams.
At the outset, planning a wedding may seem like a simple affair, but it is a herculean task, in reality. A costly one at that in today’s times. Gone are the days when even an extravagant marriage ceremony could be done with a handful of family members. In today’s time, it involves a grandiose setup, multiple outfit options, or perhaps even a destination wedding just like how most celebrity couples are doing these days. All of this involves a considerable amount of expenditure. This does not even begin to list down thousands of other contingent expenditures; you are both to incur while planning your wedding.
Why you should go for a personal loan for weddings
Since a wedding is one of the most anticipated events in anyone’s life, it is evident that most people and their parents will start financial planning and saving for the dream wedding. That being said, actually planning a wedding is a whole different ball game altogether. You may encounter several unforeseen expenses or an unprecedented increase in the prices of some commodities due to general inflation. But, fret not as this is where a personal loan for weddings, or what we call a wedding loan, comes to your rescue.
Essentially, wedding loans are nothing but usually an unsecured personal loan for wedding expenditures specifically. Instead of borrowing from relatives or liquidating your investment, a personal loan for weddings may be a better choice, especially from an online lender. While there are several ways of availing a personal loan from an online lender like Fibe instead of a commercial bank or a co-operative bank, a dedicated wedding loan from such online lenders is the one-size-fits-all solution to all your wedding expenditure, and you should go ahead with it because of the following reasons:
Easy and hassle-free Application and repayment procedure
With the recent overhauling in the fintech sector, getting wedding loans has become as easy as online shopping. All you have to do is download the app from a financial provider like Fibe and follow quick steps to get your loan. To know more about how to get a personal loan in less than 5 minutes, click here.
Instant disbursement
Now you don’t have to fill out a mountain of paperwork and wait for several days for your loan to get approved. After filling out the form online, an instant disbursement of upto 5 lakhs is made directly into your bank account.
No need for any collateral or security
Since they are essentially an unsecured personal loan for weddings, there is no requirement of any security or collateral to take the loan and saves you from a ton of paperwork for the same as well. In today’s time, unsecured loans are surging in popularity.
Things to be kept in mind before you take a wedding loan
While it is clear as day that a wedding loan is a one-stop solution for all your wedding planning needs, you should not just take a blind leap into any financial commitment, no matter how lucrative it may seem. So, keep the following things insight before you take a wedding loan and go on to celebrate the wedding of your dreams:
The interest rate on the loan
The interest rate upon your loan can be an important determinant factor in taking the loan. Ensure that you do your market research well and choose a lender that suits your needs the best. To know more about what factors help determine the interest rate in personal loans.
Eligibility criteria and other technical reasons
These are the prerequisites of taking a loan and depend upon the lender to the lender. Make sure to carefully go through the eligibility criteria to save yourself from the hassle of rejection of your application. Apart from them, factors like a previous rejection of the application, poor credit history, among others, can also lead to rejection. So, make sure to cover all ground as far as terms and conditions go.
Concluding words
At Fibe (Formerly EarlySalary), we take care of all your wedding loan needs in an instant to make your wedding the most memorable day of your life. With fixed and low-interest rates, easy repayment options, and simple eligibility criteria, we are the first choice as far as personal loan is concerned. Visit our Wedding Loans offer and make all your wedding dreams come true in just a click.
Feel free to contact us for any questions on credit, loans, and your instant cash needs!
Download the instant loan app here, or log in to our website and experience the Credit Suite.
With online personal loan applications, you can receive quick credit with minimal paperwork. The interest rates you get differ depending on various factors like your credit score and the lender.
Some lenders also provide salaried individuals with personal loans pre-approved up to a certain amount. All such loans, though, can be categorised into short-term personal loans and long-term personal loans. Read on to know how to choose between a long-term and short-term loan online.
Guide to short-term personal loan and long-term personal loan
What is short-term loan?
A short-term personal loan is generally appropriate for small, immediate monetary requirements. Usually, the short-term loan period of repayment is one year or less. Such a loan is usually unsecured and requires no assets to be pledged as collateral. You can get a short-term loan online without much paperwork from any lender like Fibe.
The interest rate in this case may be lower as the loan tenure is shorter. Loans under this category include credit card loans, instant cash loan, advance salary loans, etc. Digital portals like Fibe provide you with an instant short-term loan without any hassles!
What is long-term loan?
A long-term personal loan has a longer repayment tenure ranging anywhere from 24 months to 7 years. This loan is generally suited for borrowing large amounts and meeting big-ticket expenses.
The interest rate of a long-term personal loan is generally higher in this case than short-term loans. Loans under this category include large personal loans. If you move away from the personal loan category, you can get long-term secured loans like home loans, car loans and more.
Short-term loans vs long-term loans: How do they differ?
There are many differences between a short-term personal loan and a long-term personal loan. Your unique requirements will help you determine the type of loan most suitable for your needs.
You can choose the type of loan you want by using the information in the table below as well as based on your needs, budget and comparison of lenders.
Characteristics
Long-term Loans
Short-term Loans
Repayment duration
Unsecured: Over a year and may go up to 7 yearsSecured: Up to 30 years
From 90 – 360 days
Rate of interest
Interest rate of these loans is higher since the tenure is longer
Interest rates are generally lower because tenures are shorter but this depends on your eligibility as well
Documentation
If secured, lenders request additional documentation based on the collateral
Minimal documentation, based on the lender and at Fibe, there’s zero paperwork
Collateral
Collateral is generally required, and, in most cases, you have to submit security documents to the lender
Usually, no need for collateral
Accessibility
You can start the application process online, but offline verification is usually involved so the approval timelines are longer as there are more rigorous documentation checks, especially related to collateral
You can apply for short-term loans easily online; loans are usually dispersed within a few days
EMI Amount
The payment is dispersed over several months, so the EMI amount is lower per month
May have high EMIs because they have a short repayment period
Which loan should you choose?
The type of loan you choose depends on your need for finance and your monthly expenses and obligations. A short-term personal loan is affordable as the total interest you pay is less compared to a long-term personal loan. However, the monthly payment of such a loan is higher as you have to repay quickly. You can also get an instant short-term loan very quickly online by submitting basic paperwork.
If your monthly budget is limited, you can opt for a long-term personal loan. Your total interest payment will be higher but your EMIs will be affordable. A long-term loan may also require more documents and take a longer time to apply for.
So, you can choose a long-term personal loan if you require more funds and a short-term loan if you need a small amount. Remember, for your credit history, a long-term personal loan is better as your loan extends over a long time. Regularly paying your EMIs over a long tenure has a positive effect on credit scores.
Based on these features, you can choose the right type of personal loan for yourself. For a stress-free experience, choose Fibe. You can apply for an instant personal loan with us online in just 2 minutes. Download our instant loan app or register on our website to meet your needs conveniently.
FAQs on short-term and long-term loans
What are short-term loans and long-term loans examples?
A home loan is an example of a long-term loan. A long-term loan comes with a repayment tenure of up to 30 years. When it comes to personal loans, the longest tenure is usually up to 7 years, but most lenders offer such tenures of 5 years.
What is the difference between long-term and short-term borrowing?
A long-term loan has a longer repayment tenure and short-term loans are spread over a shorter term. The interest rate depends on your credit score, income and other eligibility terms of the lender.
Can I get a loan for 10 years?
Yes, you can get a long-term loan for 10 years, provided you meet the eligibility criteria set by the lender.
Can I get a personal loan for 7 years?
While most personal loans have a repayment tenure of up to 5 years, you can get one for a tenure of 7 years too. These are called long-term personal loans.
What is a short-term loan with example?
A short-term loan has a shorter repayment tenure. For example, you can repay a short-term personal loan in just 3 months.
What are the 3 types of term loans?
These are the 3 types of term loans:
Short-term loans: Can be repaid quickly, in less than 1 year Intermediate loans: Can be repaid in 1-3 years in general Long-term loans: Can be repaid in up to 25-30 years
Who is eligible for a long-term loan?
Both salaried and self-employed applicants with good credit scores and sufficient income are eligible for long-term loans. The terms vary from one lender to another.
What is an example of a long-term loan?
A home loan is an example of a long-term loan. Lenders generally allow you to repay these loans in up to 30 years.
Which is better: short-term or long-term loans?
The choice between these loans depends on your requirement for the loan amount, monthly earnings, the interest rate offered by the lender and use of funds.
Why are short-term loans better?
Short-term loans can be a better choice as they allow you to meet small-ticket expenses with ease and repay quickly. So, you can be free of your debt burden in no time.
What is the time period of a short-term loan?
Usually, short-term loans allow you to repay within 1 year.
Why choose a long-term loan?
You can choose a long-term loan when you want to borrow a substantial amount. A long-term loan also allows you to repay more comfortably, and your instalments are split between more time.
What is the main difference between short-term & long-term loans?
The main difference between short-term and long-term loans is the repayment tenure.
Why is a long-term loan better than a short-term loan?
A long-term loan may be more affordable as a longer tenure lowers your EMI burden. However, it can be costly overall, as you end up paying more interest than a short-term loan.
Have you ever found yourself in situations where juggling between the many expenditures, investments, and savings just seems impossible? It often happens that in our busy everyday lives, we may not have a sense of how much we are spending. But for some of us, it is only when we run into financial troubles like budget shortfalls that we realize that we have not found the right balance between saving, investing, and spending.
For the most part, the prospect of striking this perfect balance does not seem too difficult. All one needs to do is chart out an effective financial plan based on personal goals and allocate the budget accordingly into these three streams. But sometimes, people can find themselves in tricky situations and that is where financial advice may be needed.
To truly understand this trilemma, let us take an example. Consider a scenario where someone might wish to buy a laptop but their monthly budget just isn’t allowing. Should they go ahead anyway and use up their savings? Should they skip their monthly SIP investment and withdraw from the scheme? Or should they just postpone buying a laptop? In all these cases, the opportunity cost is huge. Using up savings that you have set aside for a different purpose, say, a medical emergency, is not really advisable. Missing out on investments and withdrawing from schemes can disrupt your investment goals and lead to losses. At the same time, putting off buying that laptop could mean losing out on projects, online courses, upgrading a skill, or even office work.
Finding the Right Balance Between Saving and Spending
How, then, do we navigate such situations? To answer this, we first need to understand why both savings and investments are important, and how together, they help to create an effective financial plan.
#1 Saving and Investing – Risk versus Returns
While the concept of spending requires little introduction, saving and investing often requires a bit of clarification. Investing is something that people indulge in to obtain larger returns on their wealth. For this reason, investment often involves a relatively higher amount of risk. Investment, therefore, is done to achieve larger goals such as buying a house or creating a retirement fund. On the other hand, saving is for smaller goals. It involves a negligible amount of risk and negligible returns. Therefore, between savings and investments, there is a bit of a trade-off when it comes to risks and returns. But since the goals of both are different, one cannot be a replacement for the other. To attain a good balance, both are equally important.
#2 Liquidity
Another aspect here is liquidity. Savings in banks are more liquid than investments. Higher liquidity means that those funds are available more easily. This is particularly important for emergency expenditures like visits to the hospital, urgent travel requirements, etc. Allocating adequate amounts to bank savings and liquid investment funds is imperative while also investing in long-term investments since they provide higher returns.
#3 A Financial Plan that Creates the Perfect Balance
This brings to the most important step – creating the financial plan. The foremost thing would be to analyze your short-term and long-term goals, select appropriate investment vehicles, and allocate the amounts accordingly. Generally, monthly investments are a better option compared to lump-sum investments since they have the advantage of dollar-cost averaging and it is easier to pay smaller amounts every month. In addition to this, a certain amount must also be allocated to savings. As far as expenditure is concerned, it is always best to spend within one’s limits. Here are a few tips to consider.
Make a distinction between essential and non-essential expenditures and set your priorities.
Diversify your investment avenues and look into tax saving plans.
Look into new-age credit options such as Fibe to meet short-term demands.
Be receptive to changes and adapt accordingly. Sometimes, making adjustments to the original plan becomes necessary.
Evaluate your finances and estimate your returns.
Conclusion
Now that we understand how to strike a balance between saving, investing, and spending, we can find a better solution to the example presented earlier. For a person who wishes to buy a laptop from their monthly budget, using up all savings or withdrawing from investment schemes can both be unadvisable options. This is where new-age options like instant credit or no-cost EMIs from Fibe can offer a way out and allow customers to spend without adverse effects on their savings or investments.
Feel free to get in touch with us for any questions on credit, loans, and your instant cash needs!
Download the personal loan app here, or log in to our website and be a part of the #OneSmallStep experience.
