An instant loan is a type of cash loan that gets disbursed immediately by an NBFC or financial organisation. It features a quick turnaround time of 1-2 days and sometimes the process can take less than 4 hours depending on the applicant’s financial status and profile.
With the emerging use of technology, instant loans have become a popular way for individuals to get access to immediate funding without paying exorbitant fees or charges. There’s no collateral security involved in most cases and new-age platforms charge lower interest rates.
What Are The Types Of Instant Loans Available?
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There are different types of instant loans available to individuals. Some of them are:
- Short-Term Personal Loans (STPLs) – Short-term personal loans start below Rs 1,000 and are becoming popular in India. Individuals are applying for them to meet month-end expenses and meet emergency funding requirements. You can get this loan online and it requires minimum documentation for disbursal.
- Personal Loans – Most consumers go for personal loans when they think of applying for an instant cash loan. The interest rates can vary depending on whether you’re going for secured or unsecured personal loans. The best part about personal loans is that the loan sanction amount can be between Rs 30,000 to Rs 4 lacs, with the repayment tenure being flexible. Online EMI calculators make it easy for applicants to see how the EMIs are broken down and what the interest rates are like based on their credit profiles.
- Top-Up Loan – If you already have an existing loan and require additional funding, a top-up loan can help. These give a top-up to your ongoing loans and give access to extra funds.
- Credit Card Debt Consolidation – For consumers who are failing to clear credit bills on time or having difficulty in managing multiple cards, credit card debt consolidation is a popular instant loan option. It clubs all the bills together and helps consumers make a single repayment. The repayment is broken down into affordable monthly EMIs which come with a reasonable interest rate.
What Are The Important Features Of Instant Loans?
Before you apply for an instant loan, it’s important to compare the different rates and offers provided by lenders and various platforms. Here are the key factors to be taken into consideration when opting for instant loans –
- Instant Disbursals – The best part about instant loans is the instant availability of cash. As long as applicants have the necessary documentation ready, they can get immediate funds in as little as 2 days.
- No Collateral – Except for secured personal loans, most instant cash loans don’t require any collateral. You can get a cash loan of up to Rs 2 to 4 lacs without providing any security or guarantor.
- Low Interest Rates & Flexible Repayments – Low interest rate is the biggest reason to go for these types of loans online. The repayment period is flexible and since there are no overheads involved, paying back on time becomes very feasible.
- Completely Paperless Process – You don’t need to carry any physical documents with you or scan and send paperwork. The entire loan application process is paperless and completely online. As long as you provide your KYC details and phone number, the lender can verify your profile and sanction your funds.
- No Processing Fees – Instant loans don’t charge any processing fees at the time of filing an application.
- Zero CIBIL Score Required – You can apply for an instant loan even if you don’t have a CIBIL score. These loans are a great way to start creating your credit history and get your CIBIL profile generated. Building a CIBIL Score can help you avail other different types of loans, like home loans and car loans in the future.
How Can Instant Loans Help You Meet Daily Expenses?
When you’re in need of emergency funds or require an additional line of credit within a short notice, instant loans can help. If you’re hosting a wedding celebration, going on a dream vacation or facing a medical emergency, applying for an instant loan can give you quick access to funding. You don’t need to state any reason as to why you’re applying for these loans during the time of filing.
If you use multiple credit cards often, you can go for a debt consolidation instant loan and clear your bills on time. You can get reminders sent to you about repayments and managing your finances becomes much easier.
Just make sure you have filed your ITR returns for the last 2 years and show proof of income. Having a stable income dating back to a history of 6 months helps. Your average monthly salary should be at least Rs 20,000 per month in order to be eligible for these loans.
When you’re applying online, you can rest assured that the whole process is secure since financial transactions are made through encrypted payment gateways. Customer privacy and data security are guaranteed when applying for instant loans through online platforms. Additionally, tracking the status of your loan and seeing your repayment history is convenient since you can simply log in to the dashboard and view the details.
If you’re thinking of applying for an instant loan due to personal reasons or simply because you want to try it out, you can. NBFCs and finance startups have made it easier than ever to apply for these loans through websites and apps. It takes just a few details and taps on the screen to get started.
If you’re not sure about how much money you need to borrow, you can always talk to the lender before applying. Get clarity on how much funding you need and how urgently you require it before sending in your application. This ensures that there are no hiccups and you get access to your funds in time.