There are times when many of us have unexpected personal expenses for which we do not have enough money. An instant loan can be the right option in such situations. These are easy to use online and have a shorter duration, which means quick treatment. Most instant loans require minimal documentation and are paid quickly.
Some of the different types of instant loans are:
Short Term Personal Loans (STPLs): STPLs are becoming increasingly popular in India and are offered in the form of loans starting at Rs 1,000. These are offered by many digital lenders and NBFCs. It is an ideal option to deal with financial crises at the end of the month. To qualify for this loan, you must apply online or by applying and upload the required documents. The money will be credited to your account immediately.
Personal Loans: This is the most common unsecured loan available to the masses to deal with financial crises. Many banks and NBFCs offer this loan from 30,000 to 40 lakh and approve the loan according to your eligibility. The interest rate on this loan is generally higher than that of a guaranteed loan, and the term is flexible to pay the loan at will.
Top-up loan: You can use this loan to obtain an additional loan and benefit from additional funds in addition to existing loans, such as a mortgage or personal loan. Since the bank already has all the details and personal documents, it is easy to process this loan simply by completing a form and completing some procedures.
Loan against credit card: If you have a credit card, this type of credit may be offered by the credit card provider depending on your payment history and credit card limit. The pre-approved loan requires minimal processing and funds are paid quickly. You can also contact your credit card provider to apply for this loan.
Savings and insurance loans: Many banks and NBFCs offer this loan against their small savings instruments, such as insurance policies, FDs or National Savings Certificates (NSC). This loan is also known as a demand loan. However, the loan amount you receive depends on the maturity of your policy or NSC. If you have clean proof of payment, you can borrow up to 90% of your savings.
Paperless Approval: When applying for a personal loan, you may need to submit the required documents to the lender. Your loan application will be processed. However, if you apply for an instant personal loan online, all documents must be downloaded online, making the transaction paperless. If you are a pre-approved customer, you must also present minimal or no documentation.
No Collateral: An instant personal loan is a type of unsecured personal loan. Therefore, you do not have to provide any collateral or collateral when applying for an instant personal loan.
Immediate disbursal: if you need instant cash, it is advisable to request an instant personal loan since the approved funds will be paid to your account quickly.
Minimum Processing Time: The processing time for instant loans is considerably shorter than the processing time for regular loans.
Customizable Loan Tenures – In most cases, you are entitled to a flexible loan term when you receive an instant personal loan. Therefore, you can choose a repayment period according to your preference, depending on the maximum repayment period of the lender’s loan.
Flexible Loan Amounts – Individuals applying for an immediate personal loan can apply for a loan amount of their choice as long as the loan amount is between the minimum and maximum amount established by the lender.
Competitive interest rate: If you have good credit, you are likely to be offered a loan at an affordable interest rate. This will help you keep the total cost of the loan low.
Here are the eligibility criteria that must be met to apply for an instant personal loan:
Credit Score: A good credit score is crucial to an instant personal loan at an affordable interest rate. It is advisable to maintain a credit rating of more than 750.
Age: Potential borrowers must meet the age requirements set by the lender to apply for an instant personal loan. Age limits may vary depending on whether you are an employee or a freelance worker. Be sure to check the age requirements of the various banks / financial institutions that offer instant personal loans.
Profession: Most lenders offer instant personal loans to both employees and freelancers.