Emergencies don’t wait, and neither should you when you need funds. Whether it’s a medical situation, home repair, or a sudden travel need, an emergency personal loan can offer immediate financial help. But before you apply, it’s important to understand the key factors that affect your loan approval, interest rates, and repayment.
Here are 5 things to consider when taking a personal loan, whether you’re looking for a small instant loan of up to ₹20,000 or a larger personal loan of up to ₹5,00,000.
1. Understand the Type of Loan You Need
The first step is to know what kind of loan suits your emergency. There are two main types:
- Instant Loans (up to ₹20,000): These are designed for quick access and smaller emergencies. They have short tenures, quick approvals, and minimal paperwork.
- Personal Loans (up to ₹5,00,000): Ideal for bigger expenses, these come with slightly more documentation and longer repayment periods.
Choosing the right loan type can help you manage repayments more efficiently.
2. For Instant Loans (up to ₹20,000)
Small amount loans are ideal when you need funds instantly and expect to repay them quickly. Even though they’re easy to get, it’s wise to borrow smartly.
Here’s what to keep in mind:
- Short tenure & quick repayment window: Instant loans typically have a 30 – 45 day repayment cycle. Plan your budget to ensure timely repayment.
- Interest rate matters: Though instant loans may carry slightly higher rates due to short tenure, platforms like FatakPay keep rates as low as 3% per month, one of the lowest in the market.
- Past repayment behaviour: Your track record with previous loans directly impacts your creditworthiness. Paying on time increases your chances of quick approval.
- Loan size vs. your salary: The loan amount you’re eligible for is usually a small percentage of your monthly income. Don’t over-borrow beyond what you can repay in one cycle.
- Avoid gimmicky offers: If an offer seems too good to be true, it probably is. Choose a trusted loan app for emergencies like FatakPay, which ensures full transparency.
3. For Personal Loans (up to ₹5,00,000)
If you’re looking for a higher-value personal loan, for instance, to cover larger emergencies or to pay off other debts, there’s a bit more to consider.
Here’s what you should check:
- Current active loans: Having too many open loans could reduce your eligibility or increase your interest rate.
- Personal loan interest rates: Rates may vary based on tenure, credit score, and income. (Link)
- Documentation: Typically, you’ll need basic KYC, income proof, and bank statements showing salary credits to apply.
- Processing fees and repayment options: Understand the total cost of the loan, not just the monthly EMI. Look for flexible repayment terms that suit your income pattern.
- Healthy CIBIL score: A credit score above 700 improves your chances of approval and helps secure better interest rates.
4. How to Check Your Credit Score on FatakPay
Before applying, it’s a smart move to check your credit score. The FatakPay loan app offers an easy way to view your score without impacting it.
Steps to check your credit score:
- Open the FatakPay app
- Log in and navigate to “Check Credit Score”
- Enter basic KYC details
- View your score instantly – for free!
This insight helps you apply for the right amount and increases the likelihood of approval.
5. Apply for a Loan on FatakPay
Whether it’s a Rs. 20,000 emergency loan or a higher-limit personal loan, applying via FatakPay is simple and secure.
Here’s how:
- Download the FatakPay loan app
- Complete your KYC and income profile
- Check your eligible loan amount and credit score
- Select the loan amount and tenure
- Get funds transferred directly to your bank account in minutes
Final Thoughts
Taking an emergency personal loan doesn’t have to be stressful – if you know what to look for. From interest rates to repayment flexibility, understanding these key factors helps you borrow responsibly and pay back with confidence.
FatakPay makes the process seamless with transparent terms, instant disbursal, and a user-friendly app. Whether it’s ₹20,000 or more, we’re here when you need us most.
