What are the Benefits of an Instant Loan?
Many of us find ourselves in unexpected financial situations. In such cases, an immediate cash advance may be the best option. They are quick and easy to apply online. Instant loans are quick to process and require minimal documentation.
What are the Different Types Of Instant Loans?
These are some of the most common instant loans:
- Short-Term Personal Loans (STPLs),: STPLs have been growing in popularity in India. They come in the form a loan that is as low as Rs. 1,000. Many NBFCs offer these loans. This loan is a great option for dealing with financial emergencies that occur monthly. You can apply online or via the app. Once you upload all required documents, the money will be instantly disbursed to your account.
- Personal Loans This is the most popular unsecured loan available to people in financial crisis. This loan is offered by many banks and NBFCs starting at Rs. From Rs. 30,000 to Rs. Based on your eligibility, the lender will approve the loan. This loan has a higher interest rate than a secured loan. The loan tenure can be repaid as you wish. Paisabazar.com allows you to compare personal loans and make an application.
- Top-Up Loan:This loan can be used to obtain a loan for additional funds, or to supplement existing loans like a personal loan or home loan. It is very easy to get a loan because the bank has all your personal information and documents.
- Loan against Credit Card:Depending on your credit score and limit, the provider of your credit card may offer you this type loan. Pre-approved loans require minimal processing, and funds are disbursed quickly. To apply for this loan, you can contact your credit card lender.
- Loans Against Savings and Insurance. Many banks and NBFCs offer this loan against small savings instruments such as insurance policies, FDs or National Savings Certificates. This loan is also known by the demand loan. The maturity value of your policy and NSCs will determine the amount you can borrow. A loan amount of up to 90% may be available if you have a good repayment record.
What are the top features and benefits of instant loans?
- Paperless approval: Before applying for a personal loan you will need to provide the paperwork to the lender. After that your request will be processed. You can apply online for an instant personal loan. All documents must be uploaded online. This makes the whole process paperless. If you have been pre-approved, you may be required to provide minimal or no documentation.
- No collateral:An Instant Personal Loan is a type unsecured personal loan. You don’t need to provide collateral or security when you apply for an instant personal loan.
- Instant disbursal: If your immediate financial situation calls for funds, you can apply for an instant personal loan. The funds will be immediately transferred to your account.
- Minimum Processing Time: Instant personal loans take significantly less time than regular loans.
- Flexible Loan Terms: In most cases, you will be offered a flexible loan term when you apply for an instant personal loan. You can therefore choose the repayment terms that suit your needs, provided that the maximum loan repayment term is met by you.
- Flexible Loan Amounts – Individuals can apply for an instant personal loan up to the maximum and minimum amount that the lender allows.
- Low Interest Rate: You will be eligible for a loan with a low interest rate if you have good credit. This will keep the total cost of the loan affordable.
What are the most important points to remember about instant loans?
It is important to compare different loan offers before you apply for an instant personal loan. These are some things to consider when comparing instant personal loan offers:
- Processing Fee Nearly all banks and financial institutions that offer instant loans charge borrowers an one-time processing fee. You will be required to pay more if you have to pay a higher processing fee.
- Interest rate: A lender’s interest rate can have an impact on the total loan cost. Before you apply to any lender, ensure that you check the interest rate.
- Default Penalty The lender can charge you a penalty if you fail to repay your EMIs on time. It is therefore important to compare default charges from different lenders.
- Repayment Flexibility It is best to choose an instant personal loan with repayment flexibility that allows you to make prepayments or partial payments towards your loan amount. This is especially important if your goal to repay your loan prior to the end of your loan term.
- Minimum and Maximum Loan Limits: When comparing instant personal loans from different lenders, make sure you consider the amount of the loan offered. If you are looking for an instant personal loan of Rs.15 lakh, then only look at lenders that permit you to borrow Rs.15 million.
What are the eligibility criteria for instant loans?
These are the eligibility requirements that you will need to meet in order to get an instant personal loan.
- Credit Score A good credit score is essential for a personal loan with an affordable interest rate. A credit score above 750 is recommended.
- The age requirement for instant personal loans is. The age limit may differ depending on whether you are employed or self-employed. Check the age requirements for different banks/financial institutions offering instant personal loans.
- Occupation – Instant personal loans can be offered by many lenders to salaried workers and self-employed people.
What are some of the benefits of an instant loan.
You can easily get a personal loan in an instant. It is also very convenient. The entire loan application process can be completed online, in the office or at your convenience. Once your loan application has been approved, the amount of the loan will be immediately deposited into your account.
When my application is approved, how will I get the loan amount disbursed?
Most cases will see the loan amount transferred to your account once the loan application has been approved.
Is it possible to pre-close the loan prior to the end of the loan repayment period.
Pre-closing a loan is not something that some lenders allow. You may be penalized if you make part-payments or pre-payments.
What can I do to increase my chances of getting my loan approved?
To increase your chances of getting a loan, you should aim for a credit score above 750. To determine if you are eligible for the loan, make sure you check the eligibility criteria of the lender.
How is the EMI calculated for an instant loan?
Calculating the EMI for an instant loan involves taking into consideration the loan term, amount and interest rate. The EMI calculator tool is available on the official websites for banks/financial services or through a third party financial service website.
You can apply for instant loans if you need a quick and easy financing option. Before applying for one, you need to understand how they work and what eligibility requirements apply. You can borrow a small amount, but they might have higher interest rates.