Interest Rates on Personal Loans in India 2023

You can use a loan as a great financial tool to meet a variety of needs from home renovations to medical emergencies. However, knowing what you pay as the cost of borrowing if important. Here’s where the interest rate and other fees come into play.

What is the interest rate on a personal loan?

Personal loan interest rates in India depend on the current financial climate as well as on factors like your lender and your credit score, income, employment status, and loan amount. 

It is worth noting that interest rates can vary widely between lenders, so shop around and compare your options before making a decision. While you can look up the current personal loan interest rates in India when you apply, the exact rate you get will be based on your lender and your profile. 

You can also use online calculators to estimate your quick personal loan ROI.  Some lenders may also offer promotional rates or discounts for certain types of borrowers, such as existing customers or those with an excellent credit score. 

Overall, personal loan interest rates in India are relatively competitive. With a little research, you can find a personal loan that fits your needs and budget.

Personal loan processing fees and charges

Apart from current personal loan interest rates, also check the processing charges. These over administrative and other expenses related to processing a personal loan application. 

Typically, these fees range up to 0.5-3.5% of the loan amount and are non-refundable.

In addition to processing fees, you may also be charged:

  • Prepayment penalties
  • Late payment fees or bounce charges 
  • Penal interest
  • Annual maintenance charges 

Compare these across lenders to borrow cost effectively. Remember, some lenders may offer waivers or discounts on processing fees, particularly if you have a strong credit score. At Fibe, you can get up to 50% off on processing fees, so watch out for this offer!

Tips to get a personal loan at the lowest interest rate

Here are some tips to help you get a personal loan at the lowest interest rate.

Check your credit score: A higher credit score increases your creditworthiness and decreases a lender’s risk of default. Thus, a score of 750 or more allows you to get some of the most competitive personal loan interest rates in India. 

Apply for the right loan amount: Asking for a loan that is too large in terms of your income can result in a higher interest rate. Ideally, apply for an amount that you can comfortably repay over the chosen tenure. 

Compare interest rates: Check the current personal loan interest rates among different lenders to find the best deal. Without this step, you may end up paying more for no reason.

Opt for a comfortable loan tenure: A repayment timeline that ensures your EMIs are within your budget is what will help you get a nominal ROI. As long as your new EMI and prevailing obligations don’t cross 40% of your income, you are in the right place to get a competitive rate. 

Following these basic tips can increase your chances of getting a personal loan at the lowest interest rate. Now that you know the current personal loan interest rates in 2023, get started. For a quick and seamless process opt for Fibe. 

Getting a personal loan is as simple as downloading our Personal Loan App on your smartphone and sending in your digital application. With Fibe, you can get a loan of up to ₹5 lacs approved and the money credited to your account in under 10 minutes!

Frequently Asked Questions on personal loan interest rates in India

What is the normal interest rate on a personal loan?

Personal loan interest rates in India vary, depending on your credit score, income and loan amount.

How to get lowest interest rate on personal loan?

With a high credit score, good repayment history and sufficient income, you can get the most competitive personal loan interest rates in India.

What are other personal loan fees and charges?

Apart from the applicable interest rate, you will need to pay the personal loan processing fees and a few other charges when applicable. These include bounce fees, penal interest, foreclosure/part-prepayment fees and more.

How does my income determine my personal loan interest rate?

Lenders use your income as an indicator of your ability to repay the loan. Generally, a higher income indicates a lower risk of default, which can result in lower personal loan interest rates in India.

What is a Flexi Loan?

Flexi loan is a type of loan that gives you access to finances when you need it and the flexibility to repay when you can. Instead of getting a lump sum all at once, you get access to a pre-approved credit limit that you can draw from whenever you want.

Overall, this type of loan can give you more control over borrowing and helps you save money on interest charges. The benefit of a flexi loan is that you only pay interest on what you borrow and not the entire credit limit.

Now that you are aware of the flexi loan meaning, make sure that you read the terms and conditions carefully. By understanding the fees and charges associated with this type of loan, you can make smarter choices.

Top 6 characteristics of a Flexi loan

  1. Pre-approved credit limit: You get a credit limit based on your income and other eligibility criteria. Simply withdraw what you need, when you need it.
  2. Flexible repayment: Repay the loan in part or in full as per your convenience, within the loan tenure.
  3. Competitive flexi loan interest rate: The interest rate on this loan depends on your lenders and your creditworthiness. Remember, you have the pay the interest charges each month only on the amount you have withdrawn. You can repay the principal at the end of the loan term.
  4. No prepayment charges: You can make prepayments without incurring any charges, thus allowing you to save on interest dues.
  5. Multiple withdrawals: You can make multiple withdrawals within the credit limit, without having to apply for a new loan each time.
  6. Online access: Not only can you withdraw money online, but you can also monitor your loan balance using digital modes such as your lender’s website or app.

Benefits of choosing a Flexi personal loan

This type of online personal loan allows you to pay interest only on the amount of money that you actually withdraw and for the time you use it. This helps you borrow cost-effectively.

A credit facility like this is a great option if you have recurring expenses such as tuition fees, so you can borrow only what you need and save on interest payments on the whole loan amount.

Further, if you need varying amounts of finance at different times, such as for a home renovation, this personal loan is ideal.

How to apply for a flexi loan?

Here are some general steps you can follow to apply for this type of loan. 

Step 1: Choose a lender by comparing the interest rates, fees, and terms.
Step 2: Check if you meet the lender’s eligibility criteria, such as age, credit score, and income.
Step 3: Submit your loan application by providing necessary details like your name, address, employment, and income. Upload the required documents and await approval.

You can also walk into any branch of a bank or NBFC that you are planning on taking a loan from. The representatives can help you complete this process offline.

This loan can be a convenient and flexible way of funding your needs. However, if you need instant cash, you can get it in under 10 minutes from Fibe. Simply download the Fibe Personal Loan App on your smartphone to apply for a personal loan today.

FAQs on Flexi Personal Loan

What is the difference between a Flexi loan and a personal loan?

The main difference between them is in the way the funds are disbursed and repaid. With a personal loan, you receive a lump sum loan amount that you repay in fixed monthly instalments over a set loan term. On the other hand, flexi financing gives you a pre-approved credit limit that you can withdraw from as needed and repay when you can.

What is the benefit of a flexi personal loan?

Its main benefit is that you get a pre-approved credit limit and pay interest only on the funds that you actually withdraw. This makes repayment easier.

Does this type of loan affect credit scores?

Yes, taking this loan can affect your credit score, just like any other type of loan or credit facility. If you make timely payments, your credit score can increase. On the other hand, if you miss payments or default on the loan, it can negatively affect your credit score.

How do I repay this loan?

You can repay this loan by making timely interest payments every month and paying off the loan amount by the due date.

Principles of Personal Finance: 7 Things to Remember

Personal finance is all about managing your money and making wise financial decisions. The principles of personal finance help you figure out how to achieve your goals by making your money work for you. They apply to understanding your current and future:

  • Income
  • Expenses
  • Investments
  • Debts 

Personal finance includes budgeting, saving for retirement, investing as per your risk-taking ability, paying off debt and improving your credit score. By leveraging the principles of personal finance, you can make informed decisions and boost your financial wellness.

Top 7 principles of personal finance

If you are beginning your personal finance journey, many resources are available to help you learn like books, online courses, or talking to a financial advisor.
To start, here are 7 principles of personal finance that can help you manage your money more effectively. 

  1. Set financial goals: Whether saving up for a down payment on a home, becoming debt-free, or saving for medical emergencies, creating a list of financial goals can help you stay motivated and focused. While setting these goals, you must consider your income and daily average expenses. Ensure your goals are clear, achievable and specific.
  2. Create a budget: By tracking your earnings and spending habits, you can prioritise your spending and know where to cut back. There are several budgeting rules you can follow to maintain good financial health. Here is one: 50-30-20 rule – This popular budgeting rule suggests dividing your income into three sections: 50% for essential requirements, 30% for discretionary spending and 20% for savings. The idea behind the 50-30-20 rule is to help you create a balanced budget that allows you to meet your basic needs, enjoy some discretionary spending and save for the future.
  3. Live within your means: With credit being available in no time today, it is easy to spend recklessly. Rather than taking action later, spending less than you earn and avoiding unnecessary liabilities is essential from the start. This way, you can find a balance between enjoying your life now and planning for your future.
  4. Build an emergency fund: Any money you have set aside helps to cover unexpected expenses such as car repairs, medical bills, or a job loss. It is best to save up to 3 – 6 months’ expenses as your emergency corpus.
  5. Manage debt smartly: Knowing when to take a loan and how to pay it off helps you avoid a debt trap and finance your goals seamlessly. Make sure you have a repayment plan and work to improve your credit score so you can access funds when needed. Knowing the terms and conditions, such as prepayment penalties, processing fees, penal interest and more, is vital to borrow responsibly.
  6. Save for retirement: Even if retirement is far off, saving now can help you finance your golden years comfortably. You can build a healthy nest egg by starting early and regularly contributing to your chosen retirement schemes.
  7. Invest wisely: Wealth doesn’t grow overnight; investing wisely can help you accumulate the funds you need. Do your due diligence before investing to avoid unnecessary risks. To develop a healthy investment portfolio, consider diversification in various investment classes. You can follow this strategy for your investments:

100 minus your current age rule
This guideline suggests investing a percentage of your income equal to 100 minus your current age in stocks, with the remainder in bonds or other fixed-income investments. For example, as a 30-year-old, you invest 70% of your portfolio in stocks and 30% in bonds or other fixed-income investments.

The rationale behind this is that you have less time to recover from market downturns as you get older. So, it’s essential to shift your portfolio towards less risky investments. This rule helps you build a balanced and diversified portfolio.

With these principles of personal finance by your side, you can make strategic moves toward improving your financial health. For any finances you need to upgrade your life, rely on Fibe. Get up to ₹5 lac in 10 minutes by downloading our online Personal Loan App and enjoy zero prepayment charges and easy repayment schedules.

FAQs on principles of personal finance

What is the most important principle of personal finance?

The most important principle of personal finance is to spend less than you earn. This simple principle underlies all other financial decisions and is essential for long-term financial stability and success.

What is the meaning of personal finance?

Personal finance refers to managing your money, including income, expenses, savings, investments and debt. It is all about making informed decisions about your money to achieve your financial goals.

What is the benefit of personal finance?

By applying the principles of personal finance, you can experience increased financial security, reduced stress and anxiety and the ability to achieve goals such as saving for retirement, buying a house, or paying off debt.

What are the basics of personal finance?

The basic principles of personal finance include:

  • Creating a budget
  • Saving for emergencies and long-term goals
  • Managing credit
  • Investing in the future

You can build a solid foundation for your financial well-being by mastering these basics.

Know what are the Benefits of setting up auto debit

In today’s fast-paced world, there are multiple things that demand your time and attention. Sometimes it can be difficult to keep up with things that inevitably fall through the cracks. Thanks to the new-age banking solutions, your bill payments are one of your to-do lists that can be prioritised and taken care of without much effort. Whether you need to transfer funds or make monthly instalments, digital banking solutions like the auto-debit facility have made financial management much easier. 

The auto debit facility is a system that helps you set up an automatic bill payment plan to manage your credit cards, utilities or even entertainment expenses. You can also utilise the autopay facility for your loan payments, eliminating the strain of missing EMIs.

With the scheduled payment system, all your payments are debited automatically on a fixed date, every month. All you have to do is inform the lender while completing the KYC documentation to activate the auto debit option. 

Read on for a brief overview of this automatic payment facility and its umpteen benefits.

How to initiate a direct debit from your bank account?

Automatic payment solutions help manage all your EMI payments on time. You can set up this facility using the below options:

  • Banks/financial institutions
  • Cloud-based software
  • Vendor’s website

To initiate this facility, simply call the customer service of your bank. Alternatively, you can also raise a request when availing of a credit facility. Post this, the bank will activate this option in less than 24 hours.

When activating the automatic debit option via the NetBanking mode, all you need is your NetBanking ID and password. Then, log in to your account and select the preferred option to activate your automatic payment facility. 

Subsequently, you can also visit your bank’s official website and activate the automatic payment option. Once you opt in for the facility, the amount is debited from your account on the set date every month. You can reschedule the date or stop the automatic payment facility as per your convenience. 

With this option, you don’t need to worry about handling payments manually. Whether you need to pay your DTH bills or clear your EMIs, simply schedule the date using this facility and it will get done on time.

What are the benefits of autopay options?

Besides being simple and easy to set up, there are other benefits of autopay options, which are:

1. Time-saving and convenient

One of the main advantages of using the automatic payment feature is the convenience it offers. On setting up this facility, all your bills and payments get paid without your intervention. You do not have to monitor the payment schedule. Simply, activate the facility, maintain an adequate balance in the account and the amount gets debited from your account systematically.

2. Boosts credit score

While the automatic payment feature saves time, it also helps improve your credit score. This is because you never have to worry about missing a payment. With the auto-debit facility, your dues are repaid on time and you even get reminders a few days before payment is due.

So, as long as you maintain the required balance in your bank account, your payments will get done on time. This includes loan and credit payments and it builds a healthy repayment track record which boosts your score. Remember, even one missed payment can cause a dip to your credit score and this facility eliminates the chance for the same.

3. Help in reward earning

Using the automatic debit option can earn you several rewards too. That’s precisely why you shouldn’t delay activating this feature. Pay your monthly bills on time and enjoy rewards like cashback, coupons or other discount options. Each time your account is debited, you can accumulate reward points which can be redeemed later.

4. Reduces environmental issues

By avoiding paper bills or cheques, you reduce the carbon footprint. This is one of the upsides to opting for the automatic payment facility. Since all payments and transactions are handled digitally, there is no need for any unnecessary paperwork and manual processes.

5. Minimises chances of identity theft

There is a lesser risk of identity theft when you avoid offline payments to clear your EMIs or credit card bills. Though online transactions also involves risk, it also offers you higher security while making such payments.

In fact, the RBI hiked the automatic direct debit limit up to ₹15,000 without any OTP to initiate a transaction. This makes the provision a lot more seamless as you are not required to provide OTP verification for larger payments. 

You can easily set up this automatic payment plan when you avail of a personal loan from Fibe. With a hassle-free documentation process and quick loan approval, Fibe allows you to address all your life’s upgrades with ease. So, whether you require funds for planned goals or unplanned emergencies, all you need to do is apply online at Fibe!

What are the benefits of a personal loan

With the advent of digital lending, there has been a paradigm shift in how India borrows. For example, the personal loan segment has grown about 100% between 2018 and 2021. This shows that customers today are more willing to take a personal loan and embrace credit. With lenders offering easy access and multiple personal loan benefits, people go for these instant loans to meet a diverse set of objectives. Read on to find out about the benefits of a personal loan.

Easy-To-Meet Eligibility Criteria

Qualifying for an instant personal loan is simple due to its easy qualification benchmarks. In fact, this is considered to be one of the personal loan benefits that allows you to get funding without any delays. Usually, the applicant only need to meet simple terms, which are to:

  • Be a salaried individual with a minimum salary of ₹15,000 in non-metro cities and ₹18,000 in metro cities
  • Be between the age of 21 to 55 years
  • Be a resident of India

On meeting these basic requirements, applicants can easily qualify for a low-interest personal loan. Do note that some lenders have city-specific income requirements as well.

Minimal Paperwork

To avail of a personal loan, you need to submit soft copies of your basic documents only. Existing customers with a given lender may even enjoy a paperless process. But in instances where you do need to submit documents, you may need to provide:

  • PAN card/Aadhaar card/Passport
  • Employee ID card or any other valid proof of income
  • Latest pay slips
  • Bank account statement

Quick Processing

Usually, top lenders process loan applications within 24 hours. Some new-age lenders like Fibe can process and grant approval in just 15 minutes. Among the various benefits of personal loan, this ensures that the borrower get instant cash in situations like medical emergencies or any unignored home repair. What’s more, disbursal is quick and you get the cash directly in your account without any delays. Such personal loan advantages are only possible due to its collateral-free nature.

Flexible Repayment Terms

Lenders will often allow you to enjoy some amount of flexibility when it comes to the tenure. Selecting a flexible repayment tenure for your personal loan holds a major advantage and doesn’t make a dent on your pocket. For instance, Fibe allows you to choose a tenure ranging between 3 to 36 months. This allows you to pick EMIs that are both affordable and cost-effective.

No Restriction In The End Use

A restriction-free sanction is another one of the major advantages of a personal loan. Unlike other options, you can use it to fund any obligations without any issues.

Here are a few different types of objectives one can meet with a personal loan:

  • Consolidate existing debts
  • Fund a wedding
  • Pay for educational expenses
  • Cover the cost of any big or small trip
  • Relocate to a new place
  • Renovate a home
  • Buy electronic gadgets
  • Fund small business expenses
  • Manage miscellaneous unforeseen expenses

With knowledge about all these benefits of a personal loan, making a confident lending decision is a lot easier. However, besides all these personal loan advantages, there are situations where one shouldn’t go for a personal loan. For example, if the credit score of an individual is on the lower side and they have made several credit enquiries in the last few months, it is wise to wait before applying for a new credit. Take some time to work on the credit score and then apply. It is also advisable to apply for a personal loan with a trusted lender only.

As multiple lenders are now coming out with diverse borrowing solutions, it is well worth to do your market research to find a suitable option. One smart option is the Fibe Personal Loan, wherein you can get up to ₹5 lacs in minutes. Loaded with features, you can enjoy 100% digital process with instant approval and disbursal within 15 minutes post approval.

With so many advantages, a Personal Loan offers the ideal financial assistance where there is minimal requirement for paperwork involved and simple eligibility criteria. Also, the lenders doesn’t charge anything for the pre-payment of a personal loan and provide flexible repayment facility. Get funds instantly with Fibe today, apply online and borrow smartly.

A Well-designed Financial Wellness Program can Help You Succeed. Here’s How!

The days of organisations benefiting from a straightforward retirement plan or all-inclusive health insurance have long passed. Millennials, particularly Gen Z, are demanding more extensive, inventive, and distinctive fringe benefits. Besides benefits like work-from-home alternatives and flexible paid time off policies, financial wellness programs are quickly gaining popularity. Here is a brief explanation of financial wellness programs.

Most employees state that they need assistance conserving money for a secure future. Employers now have started offering various financial wellness programs to cater to employees’ specific needs. Human resource is the most valuable resource. By lending access to financial awareness and wellness via such programs, an organisation not only amps up employee productivity and retention but also enhances the bottom line.

A financial wellness program must first educate the staff so that the employees can choose which financial wellness benefits are essential for them. They will be better able to manage their finances strategically as a result. Employees are just as concerned about their physical and mental well-being as their finances. And they believe that maintaining a balance between both aspects is crucial for a prosperous future.

But what exactly are the benefits of a financial wellness program? Let’s find out how a well-designed financial wellness program can help any organisation succeed in the procurement of its objectives: 

Not only will the employees benefit from having a thorough and customised financial wellness program, but you as the company will also reap some benefits.

Advantages of a Financial Wellness Program

1. Enhanced staff productivity: A financial program must provide budget coaching, debt management plans and student loan assistance. A direct benefit of this would be improved employee output. Additionally, this will lessen people’s financial troubles. Employees who participate in financial wellness programs spend less time worrying about debt and other issues.

2. Enhanced Employee Satisfaction: When employees have access to financial programs, they report higher levels of professional satisfaction. Programs that enable employees to meet their personal and familial financial objectives, building an emergency fund, investing in an investment plan and other things are all part of it.

Employee engagement is higher when they are prepared for unforeseen financial problems. They don’t have to worry about their finances in the long run, which is why.

3. Increased employee retention: By implementing a financial wellness program, an organisation is more likely to provide benefits to its staff that will help them feel secure in their job and prospects. Inclusion of group insurance, vacation perks, low-interest home loans, retirement benefits, etc., helps organisations foster a long-term relationship, amiable work culture and employee loyalty, ultimately leading to greater retention and lesser attrition rates. 

4. Strong Employee Recruitment: Job-hopping is a typical trend among workers today due to the high level of competition. To reduce this, employers must offer all the incentives and perks necessary to retain top talent.

Employees have a strong sense of stability because of benefits like health insurance and wellness programs included in the job application. HR managers must make aware prospective employees of the same for a successful recruitment plan and create a good brand image. The millennials feel appreciated in a company that gives preference to their needs and makes efforts for the same. Increasing the likelihood that someone will join your organisation.

5. Reduced absenteeism: The cost of living has significantly increased due to inflation rates. Employees struggle to make ends meet despite having well-paying jobs. Employees rarely have a carefully thought-out financial strategy for their expenditures, which is why they face month-end crunch or inability to face bigger expenses. Financial stress and worry lead to many physical and mental issues that may deprive the employees of their usual vigour, leading to increased absenteeism. 

At other times, employees may choose to take on side occupations to have some extra cash. This may impact their ability to perform their primary duties, increasing the number of absentees in the company. This could be a serious issue for the business.

However, HR managers may help employees out of this scenario by teaching them about financial wellness. These lessons will enable employees to create an effective budget for themselves that will, in the long term, enable them to stay out of debt. Consequently, the likelihood of seeking another employment is reduced, leading to reduced absenteeism.

A well-designed financial wellness program can work wonders for organisational success. So make sure to invest time in one. 

The Bottom Line

HR managers must implement a program that promotes financial wellness within the company. We’ve already discussed some potential advantages and benefits that could result from it. Such a program’s structure can take time and work to develop. Additionally, this can serve as a superb example for others of the company’s exceptional corporate culture and a positive attitude among the staff.

Having assisted over 4 million employees in sailing through their financial woes and other related management issues, Fibe is your one-stop solution and trusted financial wellness partner. If your organisation wants to set up a financial wellness initiative catering to employee well-being and finances, head to Fibe for a hassle-free experience. 

What are the Documents Required to get an Instant Cash Loan

Barely a little more than a decade ago, paperless loans seemed a far-fetched option before the internet, combined with digital banking, made several advancements that changed our lives. Before the paperless era, getting a loan was a tedious, inefficient and complicated procedure. Now, thanks to the free market that sits atop our digital infrastructure, fintechs have simplified the process of getting a loan.

Even so, the core step of this procedure was always a huge pain to go through and that was documentation. All of this is made simpler after paperless loans are introduced. Now, a borrower doesn’t require any written application or documents from the borrower; one could apply for a loan through the digital platform to simplify the procedure.

Get an Instant Loan without Documents

Getting a digital loan doesn’t require you to submit hard copies of the applications or documents. To get a loan from Fibe, you just need to submit soft copies of your address proof, PAN and interest proof. Once approved, you can choose your loan amount and the  EMI tenure.

Pros with Paperless Loans

1. Hassle-free process – One of the core benefits of paperless loans is the simplification of the entire loan procedure. From loan application to acquiring approval and disbursement of payment – the entire borrowing experience has been brought online. Visits and waiting hours are a relic of a time gone by. 

2. Fast processing – Of course, the fact that everything happens online makes the whole process efficient. From submission of documents to disbursement, all of this takes a minimum of a few minutes with Fibe.

How to apply for paperless loans

Applying for a paperless instant loan can be a great solution for all your last-minute expenses. Here are some ways you can get a loan without lengthy paperwork.

1. Make effective use of ‘pre-approved loan offers’ – Commonly, various banking institutions, as well as NBFCs, present pre-approved loan offers to their existing customers. As the name suggests, no additional documentation is required from the borrower. Your current status makes you already eligible for the same.

Pre-approved loan offers are precisely based on several similar factors  -like their credit score, income and repayment capabilities in history. Platforms like Fibe can accurately and instantly determine your loan amount eligibility.

2. Choose yourself a reliable lender – When you maintain an excellent financial relationship with your lender, loyalty can be key. Repeat loans are far easier to get. 

Of course, the relationship is two-way. When trying to opt for a personal loan, pick a lender with an easy and transparent application process and great customer service like Fibe.

3. Look for specifically fast-track lenders – If you’re looking for instant loan approval specifically, check Instant Cash Loans from Fibe. The process takes just 10 minutes.

Things to remember before applying for an instant loan without documents

1. Credit score – Even though various lenders now offer instant loans without too much documentation, you’re likely to face ineligibility to get the instant loan approved if you do not have a quality credit score. What is a credit score? Your credit score is the display of your repayment capacity. So, the better your score, the better are the chances of getting instant loan approval. Check your credit score for free from Fibe.

2. Not entirely paperless – Even though the loan approval process has gone paperless, you still must submit documents like PAN card, ID proof and address proof. You won’t know where it might be needed while going through your application process.

3. Always have a backup – In some cases, where a borrower is required to present their salary slips or IT return documents if you do not have them, carry other documents like Form 16 with you. Always know what additional documents might be used in place of what is required; you can also confirm this from your lender.

As easy as getting instant loan approval has become after it has gotten paperless, it requires you to be more focused on your submission. Be entirely sure about every term and condition that comes along with instant loan approval. The process is less cumbersome for you and easily accessible. Do not be afraid of your lack of documentation; research well and you might find vendors who approve instant loans with minimum documentation.

Finally, always be sure to go through the terms and conditions of your lender thoroughly to pick the best choice for yourself

How To Get an Instant Loan without Credit Score

A credit score is one of the first measures a lender considers when you’re applying for a loan in India. It’s this information helps the banks and lending institutions evaluate any individual’s creditworthiness and repayment ability while applying for a loan. So, does it mean that people without credit scores aren’t eligible for a loan? Not at all. A borrower can get an instant loan without credit score or a low credit score. Let’s have a look at how to get loan without credit score.

What is a Credit Score?

The Credit Information Bureau (India) Limited is the credit bureau that maintains records of companies and individuals’ credit-related activities, including credit cards and loans in India, specifying their credit score.

A credit score is a three-digit numeric summary of an individual’s credit history that reflects his credit profile. It is solely based on past credit behaviour such as borrowing and repayment habits, as shared by banks and lenders with credit regularly.

A person’s past behaviour is taken as an indicator of their future actions, and hence the credit Score showcases a consumer’s creditworthiness. A high credit score enables cheaper and instant loan approval, while a low indicates vice versa. The credit score ranges from 300 – 900 depending upon various factors like the repayment history, credit card utilisation, the number of times applied for a loan and loans for different purposes of the individual. 

Generally, a score between 300 and 699 is considered a bad or low credit score. Banks are unlikely to lend loans to such people, and even if they do, the interest is 0.5%-2% higher. And if the score falls below 700 (mainly due to defaults made in paying off the previous loans), the banks might refuse to offer any loan. For example, when a person applies for a credit card or loan, one of the critical factors lenders check is the person’s credit profile, as depicted by the credit score. Banks usually offer loans to individuals falling within the 750-900. But Fibe can lend you an Instant Personal Loan with a low credit score.

You can either improve your credit score by clicking here or apply for an instant loan without credit score with Fibe.

How to Get a Personal Loan without credit/ Credit Score?

Applying for a loan without credit score is quite tricky, but Fibe makes your work easy by providing loans to individuals even without a credit or credit score.

1. Opt for Collateral Based Loans

Primarily, personal loans are collateral-free and do not require security. But this is only significant if you have a good or high credit score. Moreover, if you don’t have a credit score, you will have to offer security on a personal loan. Despite that, you can pledge any of your valuable assets as collateral on a loan to Fibe. This will make it easier for you to avail of a loan from the lender of your choice.

2. Prove your Creditworthiness

A lender always looks for a creditworthy borrower to approve a loan application. Therefore, if you have a stable source of income, you can easily apply for a personal loan from Fibe. You can even apply if you have a low credit score or no credit score displaying your salary slip or bank statements as proof of your income. In addition, this will prove your ability to repay the loan amount on time.

3. Get a Guarantor/ co-applicant for the Loan

Likewise, you can apply for a personal loan with a co-applicant or a guarantor but make sure that the guarantor has a steady income. If your co-applicant is a family member, you should inform them beforehand regarding your intentions to avail yourself of a personal loan to avoid confusion. 

Then the co-applicant needs to fulfil the KYC process with Fibe’s easy-to-use app. They will then check the bank statements and credit history. Then you’re most likely to get your loan application approved if the co-applicant meets the criteria.

4. Apply for a Lower Loan Amount

It’s best to avoid applying for a higher loan amount if you have a low credit score or don’t have one. This is because the lender may either doubt your creditworthiness or charge high interest. But Fibe charges low-interest rates on such loans. This ultimately increases your chances of getting the loan approved.

5. Ask for a NA or NH on your Credit Report from your lender

No History (NH) or History not Available (NA) or on your credit report marks the absence of any previous credit activity and credit in the last 36 months. In such cases, you can avail help from Fibe consultants. They may consider your situation and offer a personal loan at a reasonable interest rate.

6. Bonus Tip: Do it The Fibe way

Fibe makes things easier for you. You will no longer have to wander from bank to bank since it’s challenging to get an instant loan approval without a credit score online in India. We aim to be one of the most user-friendly instant loan apps in India. These are the five documents you need to avail an instant loan online with Fibe: 

  • Selfie
  • PAN card
  • Address ID proof
  • Aadhar card
  • Bank statement

Individuals can apply for an Instant Loan without credit score at Fibe. You can also explore more Money Management, Investment, Instant Personal Loans, And Financial Wellness Ideas on Fibe for all your needs.

Download the Fibe app or log in to our website to become a part of the #OneSmallStep experience. 

Fibe Raises Series D Funding of $110 Million led by TPG’s The Rise Fund & Norwest Venture Partners


  • Expands cash loans business to over 150 cities
  • Adds multiple senior leadership positions over the last 6 months
  • Aims to deepen the financial ecosystem for young and aspirational Indians through its platform

Pune, India, 29th August 2022: India’s largest consumer lending fintech, EarlySalary, has closed its series D funding round of $110 million led by TPG’s The Rise Fund and Norwest Venture Partners. Existing investor Piramal Capital & Housing Finance Limited also participated in the round. This is EarlySalary’s largest fundraise to date, following the company’s last financing round in 2019. The company had raised $34 million in previous rounds from Eight Roads, Chiratae Ventures, Piramal Capital & Housing Finance Limited and angel investors. The latest investment will enable Fibe to grow its business significantly in the next 24 months. The series D round of $110 million includes a secondary sale. Unitus Capital acted as the exclusive advisor for the transaction.

Founded in Pune in 2015, Fibe provides accessible financial lending solutions of up to Rs. 5 lakhs to working professionals. The company expanded into the affordability segment and introduced Buy Now Pay Later (BNPL) services to its customer segment with a clear focus on education, health and consumer product financing. Over the course of its journey, Fibe expanded its services to over 150 cities and aims to continue growing its customer base.

Fibe’s core purpose is to provide a financial ecosystem for young and aspirational individuals. 80% of Indians use banking services, however, almost 50% of the Indian population doesn’t have access to credit due to various reasons. The focus of Fibe is to provide a safe and reliable credit platform to the underserved population, primarily in Tier 3 and 4 cities, at affordable rates.

Fibe’s comprehensive suite of products includes personal loans payable in EMIs over multiple tenures. The company will continue to expand its BNPL segment and build out an extensive network of partners across the healthcare and edtech segments.

To create a superior customer and product experience, the company will continue to focus on enhancing its tech and analytics frameworks while delivering a high degree of transparency, risk management and customer centricity to achieve its growth plan. In the last six months, Fibe has added key executives across risk, sales, treasury and other functions to strengthen its management team.

The company has rapidly expanded its presence from 18 cities to over 150 cities and increased its customer base to 12 million app downloads with approximately 1 million customers. It has grown 7x over the last two years and emerged as a market leader in providing financial assistance to young middle-income individuals across the country. The business continues to be profitable over the pandemic and expects to grow manifold in the future.

Commenting on this funding, Akshay Mehrotra, Co-founder and CEO said, “We believe in a customer-first approach to providing credit to young middle-income Indians and we are thankful for the trust millions of Indians have put in us. As our customers’ aspirations and credit needs grow, we will focus to continue to retain their trust and grow with them. The funding will not only help us in expanding our cash business but also build an array of capabilities to efficiently serve a larger segment of customers. We are confident in our ability to keep innovating and achieving 10x large growth in our customer base.”

Ashish Goyal, Co-Founder and CFO said, “Fibe’s core purpose is to enable financial services access to its core segments. This capital raise enables us to grow and meet our customer aspirations. We believe that we will be able to add significant value to the fintech ecosystem. This capital raise from two of the most marquee investors is also a validation of our core principles of building a business that is customer-focused, profitable and driving meaningful gains in financial inclusion.”

Akshay Tanna, Partner at TPG said, “Through its innovative platform, Fibe delivers a critical financial service to the growing, yet underserved, middle-income segment in India. By providing modest, short-duration loans at competitive rates, Fibe is improving the financial health of its customer base and empowering them to finance things like upskilling courses, healthcare needs, personal emergencies, and short-term cash flow mismatches. Akshay and Ashish have built a world-class team and a market-leading product that is poised to continue to meet the needs of India’s rising middle class and we are delighted to be a part of its next chapter of growth.”

Financial inclusion is a core focus of The Rise Funds’ multi-sector global impact investing strategy. The Rise Funds have invested in several financial technology companies that are building a more inclusive financial system around the world including Varo in the US, Duxiaoman in China, and Airtel Money in Africa.

Niren Shah, MD at Norwest Venture Partners said “We are delighted to partner with Akshay and Ashish at Fibe, who have built one of India’s leading, profitable and scalable consumer fintech platforms. Digital lending is emerging as one of the fastest-growing fintech segments in India and we believe that Fibe is well-positioned to serve the credit needs of millions of underserved but aspirational Indians. Fibe’s strong growth has been driven by a world-class technology, analytics and governance platform, which has resulted in exceptional credit underwriting and asset quality.”

With the recent digital guidelines by RBI, Fibe believes that the ecosystem is also enabling an innovative and constructive environment to grow its digital footprint and digital way of banking. Fibe aims to expand operations across verticals and targets to reach millions of customers. It aims to build a significant presence in the impact categories of providing cash loans to young Indians, salary advances to corporate employees and an ecosystem to provide avenues like BNPL to its customers.

About The Rise Funds
The Rise Funds are a core pillar of TPG Rise, TPG’s global impact investing platform. Founded in 2016 by TPG in partnership with Bono and Jeff Skoll, The Rise Funds invest behind impact entrepreneurs and growth-stage, high potential, mission-driven companies that are focused on achieving the United Nations’ Sustainable Development Goals. The Rise Funds deliver capabilities and expertise across a wide variety of sectors and countries at scale, focusing on opportunities in climate and conservation, education, food and agriculture, financial inclusion, healthcare, and impact services. With approximately $15 billion in assets across The Rise Funds, TPG Rise Climate, and the Evercare Health Fund, the TPG Rise platform is the world’s largest private markets impact investing platform committed to achieving measurable, positive social and environmental outcomes alongside competitive financial returns. For more information, visit or @therisefund on Instagram.

About Norwest Venture Partners
Norwest Venture Partners is a global, multi-stage investment firm that manages approximately $ 12.5 billion in assets and has funded more than 650 companies in the last six decades. Norwest Venture Partners is focused on early to mid-stage venture capital and growth equity investments across a wide range of sectors including Fintech, Insurance, Consumer-tech, B2B, SaaS, Healthcare, Logistics, etc. Some of the prominent investments in India include Swiggy, OfBusiness, Kotak Mahindra Bank, Five Star, NSE, Vastu Housing, IndusInd Bank, SK Finance, Mintifi, Xpressbees, Amagi, Thyrocare, Duroflex, MENSA, etc. Norwest has offices in Palo Alto, San Francisco, India, and Israel. For more information, visit

About Fibe (Formerly EarlySalary)
Fibe is India’s leading consumer lending app focused on young, aspirational and tech-savvy Indian consumers. It is building a financial ecosystem that enables the mid-income group to fulfil their aspirations. It has launched a host of financial products like Cash Loans, long-term Personal Loans and Buy Now Pay Later plans. It offers a 100% digital loan application process that takes just seconds to complete. Fibe has grown multifold over the last 2 years and emerged as a market leader in providing financial assistance to young middle-income group in India. The company has already disbursed nearly 2.8 million loans worth Rs. 7,500 crores.

Loan Terms You Ought To Know Before Borrowing Funds

With fintech advancements, the lending sector in India has progressed by leaps and bounds. Today, consumers no longer have to stand in queues to get loans, as almost all financial undertakings can be completed online. While this ease of access is admirable, loans are still the same financial responsibility they always were. As such, it is well worth it to understand the instrument fully, and this means knowing the loan terms associated with it. While a majority of the exposure to these loan terms will be through promotional content, you are likely to encounter the entire glossary when reading through the loan documents.

What’s more, the latest RBI regulatory framework mandates lenders to issue borrowers a Key Fact Statement, which is a document containing vital loan information. Naturally, this statement will contain pertinent loan terms, and understanding what they denote is key to borrowing smartly. Here is a brief overview of the important loan terms to look out for when availing funds.

Credit score

Of the many finance terminology definitions to know, credit score is likely among the more important ones. Simply put, your credit score is a 3-digit score assigned to you by a credit agency. The CIBIL score is a popular credit score that lenders consult when assessing your creditworthiness. Generally, there is a minimum credit score for loan approval when borrowing funds, with most lenders requiring a score of at least 650.


This loan terminology is an acronym for annual percentage rate, and the APR dictates the true cost of borrowing for a year. The APR is almost always higher than the interest rate offer advertised for a term loan. This is because it accounts for the interest payable, as well the other costs listed in the loan agreement.


The collateral simply denotes the asset pledged in order to avail the loan. In many cases, the lender will not approve a sanction or go through with loan disbursement unless you pledge an asset that you own. These instruments are called secured loans and the value of the asset often impacts the principal amount of the loan.

Credit appraisal

This finance terminology refers to the assessment process conducted by a lender before approving a sanction. This involves checking the applicant’s credit score, fixed obligation to income ratio, income stability, and if the applicant has a history of being a loan defaulter. Credit appraisal is a key part of the process and lenders won’t approve applications without doing their due diligence.


In the context of borrowing and lending funds, deferment refers to the provision where lenders allow you to pause payments for a set period. This is based on the agreement between borrower and lender, and mostly comes into play only in instances of financial hardship. Deferment terms will be listed in the loan agreement.


This is simply the digital upgrade of the NACH, which is a provision offered to you by lenders to automate EMI payments. The e-NACH provision is a framework that exists completely online. With an e-NACH mandate, you can authorise recurring payments from your account for a wide range of services.


This term is an acronym that stands for equated monthly instalment. In a loan agreement, it denotes the monthly amount due during the entire loan repayment process. When planning your loans, always check the EMI amount and ensure that it fits in your budget. Any discrepancies in the EMI details must be addressed immediately.


This term refers to the financial institution or credit lender in question. As per the latest RBI regulations, authorised lenders may be referred to as Regulated Entities (REs) or Lending Service Providers (LSPs), based on their categorisation.


A guarantor is an individual who agrees to share the financial responsibility of repaying the loan if the primary borrower fails to hold up their end. Guarantors are often required when the primary borrower requires a large sum of money but doesn’t have a strong enough profile to back the requirement.


This is a common loan terminology that you will come across when availing secured loans. Simply put, lien means the lender’s legal claim on your assets until you have completely repaid your debt. When availing a secured loan of any kind, take note of this term and any clauses associated with it.


Default in any credit agreement means the act of non-payment. It is on one of the important credit terms to know as lenders have varying default penalties applicable. As such, knowing the meaning helps ensure that you have a better idea of the terms and conditions applicable.


The term simply refers to the loan period or the tenure of the loan. It is the loan repayment window applicable and will be clearly listed on the loan agreement. You should note the term of the loan before approving or authorising disbursal as it does impact the cost of borrowing.

Loan agreement

This is a document shared to applicants by the lenders once the credit appraisal process is complete. This document formalises the loan and has all the vital information of the loan. You will have to approve the loan agreement, and will now also receive a Key Fact Statement that contains loan information.


This is sometimes listed as the origination fee or processing fees, and it means the cost applicable on your loan. These fees are charged by lenders for providing credit services and are sometimes expressed as a percentage rather than a flat amount. Keep an eye on these charges as they can be quite high.


Prepayment is the act of paying a portion of the outstanding loan or the entire outstanding amount ahead of the tenure. In all loan agreements, you should look for the prepayment terms and fees applicable as foreclosure of loans can save you a lot of money.

Fixed/Floating interest rate

Floating or fixed interest rate primarily refers to the interest rate applicable on the loan. The floating variant means that the interest rate may change based on market movements, whereas the fixed interest rate is locked in from day one. It is important to know the meaning of both to borrow efficiently.


The principal is the loan amount. This amount is also referred to as the sanction and will denote the full amount approved by the lender. There may be certain charges and fees applicable on the loan, which get deducted from the principal amount. Also, during loan repayment, the principal amount reduces with each payment you make.

While this isn’t an exhaustive list of the terms you may encounter when availing loans, understanding these important loan terms is vital. It can give you a leg up in negotiations with your lender, and help you make better borrowing decisions. However, if you come across other terms and have doubts about your loan or the offer made to you, get them cleared right away.

Most lenders will have dedicated support teams and relationship managers who can offer you needed insight. To ensure that you have a hassle-free experience, pick your lender wisely. One smart option is Fibe with whom you enjoy a completely digital, transparent and simplified experience.