Many loan seekers these days choose Instant Loan over traditional personal loans. The financial world is going through a rapid change. Bank processes which were tedious and time taking are readily available and paperless. The ATMs and online banking, has made the queuing for deposit and withdrawal vanish. Now getting a loan is quick, pre-approved, paperless, and instant. You can even apply and Check Loan online. Without a doubt, instant loans aim is to decrease the borrowers and lenders hardship and save their precious time. Let us see how feasible it is opting for an instant loan.
An instant loan can now be applied effortlessly online from wherever you are. You just need to log in the bank’s website, fill the details in the form, attach soft copies of the required documents and submit the application. The bank then checks and decides if the approval is to be sanctioned or not by going through the amount you applied for and your eligibility, and then directly credit the funds to your bank account.
You might be wondering how an instant loan is different from a pre-approved loan. There is practical difference between both of them. For a pre-approved loan, banks check the eligibility of the borrower beforehand and then makes an offer to them, needless of who does or does not apply for it. But for an instant loan, the borrower can apply for a loan anytime as per their requirement, the lender can then check their financial credentials and eligibility and thereafter approve or reject the application. Instant loans are useful for any sudden or unplanned financial need, but you must also assess the costs of borrowing before you decide.
Though Instant loans are easier to obtain, but don’t let the ease of borrowing fool you into thinking that it is easy money. Curtail on your regular borrowing habits to get out of every financial crisis. Applying for instant loans frequently will also impacts on your credit score negatively.
As instant loan is easier to access and often disbursed instantly, it might prevent you from looking at other loan options which might be cheaper and favorable in the long run. For e.g. you can get an education loan at a low interest rate, but people may forgo the cheaper rate for quicker disbursal even if they end up paying a higher interest rate. Look at various options available, then take the loan which turns out cheaper and more convenient to repay.
For an instant loan, you might have to pay a penalty for prepayment on your loan amount. The processing fee and interest rates too are usually higher than a personal loan.
Instant loan being an unsecured loan reduces your loan borrowing capacity until it is completely repaid. For e.g. if you want to apply for a home loan, and is already paying the EMIs on an instant loan taken previously, your repayment capacity would reduce to the extent that you might not get a bigger loan till the existing instant loan it cleared.
Though instant loan can be your saviour in time of a crisis, still the borrower should be aware of the repayment cost and charges for taking this loan, and borrow only within their means. Check for Personal Loan online then decide.