Instant personal loans are nearly a financial product that can quickly fulfill a person's requirements regarding funds for any purpose, such as an emergency, planned events, or individual project. One of the differences between these kinds of loans and traditional loans is that this type of loan does not involve collateral; thus, you do not necessarily have to pledge anything. Such a loan does all its application procedures online and is convenient when quick cash is wanted.
What Is an Instant Personal Loan?
An instant personal loan is an unsecured loan that one can apply for exclusively online, without the necessity of visiting the bank in person. It has a simplified procedure and quick disbursement of the loan amount often within hours, so the funds are available in the account almost immediately.
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How Do I Get an Instant Personal Loan?
Though the process of application may vary in some banks/lenders, the standard procedure for applying for instant personal loans includes the following:
1. Registration:
You register here using your mobile number linked with the Aadhar and PAN cards and provide minimum basic personal details.
2. Eligibility Check:
The bank cross-checks the details to ascertain your creditworthiness. In some instances, where you already have a pre-approved loan offer, eligibility checking can be skipped.
3. Loan Amount & Tenure:
Once you qualify, you can choose the amount and tenure you want to prefer while keeping in your budget and repayment capacity.
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4. Disbursement:
After approval, disbursal of the loan amount usually takes about two hours, though most of the time, the fund shall reach your account within 24 hours.
Eligibility Criteria
Given below are the criteria for eligibility for instant personal loan in India:
1. Age:
You have to be at least 18 years old, although some lending agencies may require you to be 21 or older.
2. CIBIL Score:
You must have a good credit score above 700 for better interest rates.
3. Employment:
The salaried applicant should have service of more than twelve months with the same employer, while a businessman or sole trader should have a steady income stream.
Instant Personal Loans
The key benefits of these loans are
1. No collateral:
No need for any security, but of course, the interest rate is much higher than that of secured loans
2. Quick disbursal:
If urgent money is needed, no option can be better than this and the same is disbursed in hours.
3. Flexible Repayment Options:
Borrowers can opt for repayment schedules that fit their financial situation, and some lenders permit early repayment without foreclosure penalties.
4. Ease:
The application process is totally online and thus free from the hassle of driving to a branch.
Instant personal loans allow fast cash without collateral but charge higher interest rates. Therefore, before applying for such a loan, one needs to weigh it against the requirement of justifying financial needs, the capacity to pay back with interest on time, and the cost incurred to avoid the debt trap situation. Responsible borrowing is the key to maintaining financial stability.
