There is no doubt that personal loans are the most popular ones in the world of finance. People opt for this one primarily because it requires no collateral like other types of loans. However, there was a time when it took lots of time for personal loan approval. Nevertheless, to keep up with the ever-changing world, financial institutions have also shifted to the digital domain. Lenders now provide instant personal loans to customers with little documentation. The customers just need to give the documents and meet the lender’s eligibility criteria to obtain the loan. As a borrower, you can use an instant personal loan app to get a loan quicker. Here in this article, you will get to know what an instant personal loan is, its benefits, and how you can obtain it.
What are instant personal loans?
An Instant Personal Loan is the unsecured credit facility that banks and other financial institutions like NBFCs offer to borrowers to satisfy their personal financing needs. While traditional loans can take a long time for their disbursal, instant personal loans don’t take a lot of time. Therefore, instant loans come in really handy in those situations when the requirements of the borrower are urgent. Generally, you can apply for an Instant Personal Loan using the online method. You just need to go to a lender’s website and opt for instant personal loans. Of course, like any other loan, to apply for instant personal loans also you need to check certain boxes.
But before getting into it, let’s see the benefits that this loan offers.
Benefits of instant personal loans
Immediate funding
Instant loans also provide the benefit of immediate funding to the borrowers. He does not have to pledge any type of asset as collateral in order to secure the loan and the procurement process is also very fast, simple and easy.
Quick disbursal
In case of any financial emergencies, instant personal loans can be your best friend. The disbursal process for this loan takes a shorter time compared to any other loan.
Minimum documentation
If you apply for instant personal loans, specially via apps, not only does it take lesser time but also it doesn’t require a lot of paperwork. The online facility of getting a personal loan is hassle-free and convenient for every individual. To get an instant personal loan, you only need to upload a few documents like income proof, ID proof, and address proof.
Also Read: How to Get Loan Against Property From SBI?
Flexible repayment
The repayment tenure of an instant loan is flexible. The borrower does not have to worry about his financial burden if it’s too high as the repayment tenure is flexible. This allows him a degree of peace as he can make the payments over a specific period of time, rather than in a single instalment.
Eligibility criteria
Instant personal loans require a set of eligibility criteria for individuals. They have to meet these criteria in order to ensure that they get the instant personal loan precisely:
- The applicant must be an Indian resident and must be between 21 to 60 years of age.
- He must have at least 2 years of work experience in his respective field.
- He must also have a credit score of at least 650 or higher.
Steps for taking an instant personal loan
Numerous banks and NBFCs provide instant personal loans to their customers. The process to procure instant personal loans require a few steps, which are mentioned below:
- First, decide upon your loan requirements by considering all factors.
- Then determine whether you are eligible for taking the loan as per your choice of the loan amount.
- You must also need to find out the maximum amount of loan that you can take.
- After confirming that you meet the eligibility requirements, you can go to the respective lender’s website and select the instant personal loan option.
- An application form would appear.
- Fill in the form with your details like contact number, name, address, etc.
- Then you have to attach some important documents along with the application form.
- These documents include your income proof, address proof, identity proof, etc. Note that the income proof for salaried and self-employed persons may vary. Also, keep in mind that the lender may ask for additional documents.
- The lender(s) will then scrutinise your application thoroughly and if they find you eligible for the loan, they will contact you via text message or phone call.
- After that, you will receive the fund in your bank account.
Therefore, we can establish instant personal loans as an effective tool in case of financial emergencies. However, the borrower must make sure that he pays his debt on time and does not delay his debt obligation. Also, he must read all terms and conditions of the loan carefully and make sure that he knows the correct EMI amount and repayment tenure.