For years, a good credit score (typically over 750) has been the most crucial factor for lenders when approving personal loan applications. A low credit score can result in processing delays or outright rejection. Fortunately, flexible loan apps are moving beyond traditional credit scoring, now approving applications from self-employed individuals or borrowers with limited credit histories. These loan apps have easy eligibility criteria and require minimal documentation for verification and approvals. 

In this article, we’ll explore how flexible or flexi-loan apps are changing personal loan eligibility through innovative approaches, the importance of choosing flexi-loan apps and how you can choose the right platform.

What is a Flexible Loan?

A flexible personal loan, or flexi loan, is a loan specially designed to make the terms adaptable and easy for self-employed individuals or borrowers with limited credit scores. In this loan type, users can borrow money according to their requirements, but it must be under their pre-approved limit. They pay interest only on the sum they use. Several personal loan apps offer loans with minimal documentation and easy eligibility criteria. 

In flexi loans, a lender offers a credit limit to the borrower, and they can withdraw as needed. Many platforms don’t charge prepayment penalties, and the approval process is quick as compared to traditional loans. Lenders allow borrowers to adjust EMI amounts and choose repayment terms based on the situation.

Eligibility Criteria of Flexible Loans

Check out the basic eligibility criteria you must qualify for flexible loans from flexible loan apps: 

●       Age: Most lenders and online platforms require applicants to be between the ages of 21 and 80 years.

●       Nationality: The borrower must be Indian.

●       Customer Profile: Salaried or self-employed individuals.

●       Income: A considerable monthly income is required.

●       Credit Score: Generally, it’s 685 or higher. 

Please Note: The eligibility criteria may vary depending on lenders. Please check before you apply.

How Flexible Loan Apps Are Changing Personal Loan Eligibility

Flexible online loan platforms are effectively transforming personal loan eligibility by using alternatives to check the creditworthiness of the applicants and using minimal documentation for verification. Let’s explore how: 

●       Alternative Credit Assessment: Unlike traditional loans that require a high credit score for application approval, many personal loan apps determine an applicant’s creditworthiness by evaluating the following: 

1.     Consistent monthly income is a plus, but bank transaction history and spending patterns can also help assess income stability.

2.     Regular bill payments with no dues signify financial discipline.

3.     For self-employed individuals, you can show business cash flow, helping lenders check the consistency of the income. 

●       Minimal Documentation: Several apps require basic documents like: 

1.     Identity Proof: Aadhar card, PAN card, or Passport.

2.     Address Proof: Utility Bills or Rent Agreement.

3.     Financial Documents: Salary Slips or Bank Statements.

4.     Business Documents: GST Registration or Business Invoices. 

Please Note: The documentation requirements may vary depending on lenders. Please check before you apply. 

●       Adjustable Loan Terms: Personal loan apps offer flexibility when it comes to adjusting the terms of flexible loan applications. Here’s how: 

1.     Altering EMIs on the basis of the monthly cash flow or income of the borrowers.

2.     Offers prepayment loan options without charging extra charges.

3.     Changing certain terms in case of financial difficulties faced by the borrowers. 

This flexibility enables users to apply for the loan with ease, achieve their financial objectives, and repay the loan without strict conditions. 

●       Credit Building Opportunities: Flexible loan apps allow users to improve their credit scores by timely repaying loans. This is beneficial for individuals with low credit histories who want to improve their scores for better financial opportunities in the future.

Why Self-Employed Individuals Should Choose Loan Apps?

A personal loan app for self employed offers numerous benefits, including: 

●       Loans are quickly processed and disbursed in a timely manner without unnecessary delays.

●       With flexible repayment tenures, the online platforms allow borrowers to pay EMI only on the amount they’ve used.

●       Borrowers can conveniently withdraw funds whenever they need and make multiple prepayments online.

●       Individuals with a good credit score may apply for a higher credit limit.

Choosing the Right Personal Loan Online Platform

There are multiple personal loan apps available in the market, and here are certain factors you can consider when choosing the right one: 

●       Look for a trusted app offering loan amounts that meet your requirements.

●       Ensure to compare terms and conditions and rate of interest charged by different platforms.

●       Choose apps that promise to approve loans quickly.

●       Check if it offers flexibility in repayment tenure.

●       Read reviews and opt for the platforms with reliable customer services.

Final Thoughts

It is concluded that flexible loans have transformed the financial services industry and made the loan process more convenient and accessible for everyone. With reliable personal loan apps like Bajaj Finserv, you can make applications online and do not need to worry about the data's security. It does not charge prepayment fees; you can borrow what you need and pay interest only on EMIs. 

Applying for flexible loans is a smart move for those looking for loan options with easy terms and conditions, helping them fulfil their financial goals seamlessly without unnecessary delays.