Do you have bad credit? Are you unable to take loans from banks and other financial institutions? Do you need some money as soon as possible? If yes, then an instant loan may be just what you need. Getting an instant loan allows you to receive funds immediately for a one-time expense or unsecured debt. It becomes beneficial if you’re planning a major purchase or something that needs to be taken care of immediately, for example, utility bills, rent, mortgage payments, car payments, insurance premiums, home repairs, and more. Read on to know everything you need to know about getting an instant loan in India.
What is an Instant Loan?
Getting an instant loan is a cash advance that allows you to receive funds immediately for a one-time expense or unsecured debt. An instant loan can also come in handy if you’re planning a major purchase or things that need immediate attention, such as utility bills, rent, mortgage payments, car payments, insurance premiums, home repairs, and more.
Who can Apply for Getting an Instant Loan?
Anyone can apply for an instant loan. However, interest rates may vary depending on the loan amount and prevailing interest rates of the lending financial institution. To avail of an instant loan, you just need to submit an online application along with your identity documents and basic details about your loan demand. Apart from individuals, companies can also avail of an instant loan.
Types of Instant Loans in India
- Personal Loan – The most common type of instant loan in India is the personal loan, which can be used for various purposes. For example, you can use it to meet your short-term financial needs such as expenses for transportation, medical bills, urgent home repairs, and wedding expenses. You can also use it to repay your existing debts, pay off your credit card, or pay off your existing debt.
- Business Loan – Unlike personal loans, business loans are generally long-term and require significant investments. You can get these loans for any business, including startups, small trade and service firms, and large corporations. You can also avail these loans for purchasing a new asset.
- Auto Loan – If you want a new car or truck, you can apply for an auto loan. These loans generally have one or two years of repayment and come with attractive interest rates. You can also avail these loans for purchasing used cars. Loan for an Education – If you plan to send your child to school or college, you can apply for an education loan.
Important Things to Remember before deciding to get an instant loan
- Before getting an instant loan, it’s essential that you fully understand the terms and conditions of the loan.
- Keep your monthly loan repayment schedule in mind at all times.
- Don’t take out a loan that you don’t need. It’s better to borrow less and repay the loan on time than to borrow too much and not be able to pay it off.
- Don’t rush into signing a contract with a lender or making any commitments without clarifying all your doubts.
- Make sure the loan provider has a good track record.
Personal Loan Eligibility Criteria
All salaried individuals between the ages of 21-60 years who have a regular income source and a bank account can apply for an instant personal loan. These loans are available to salaried individuals who are either employed with a monthly income of 18,000 INR or self-employed with a minimum monthly income of 20,000 INR. The best part about instant personal loans is that they require little documentation to get approved. You can get instant approval online if you apply through a personal loan app. In addition, instant personal loans are unsecured, so you don’t need to provide collateral against the loan amount. Some lenders also offer guarantor loans for salaried individuals with a regular source of income who need instant cash for an urgent need. In addition, a few other factors must be considered when applying for an instant personal loan. These factors include your current employment status, income, age, and credit score.
Nowadays, it takes very little effort to obtain a loan. Since all you need to do is fill out an application and provide a few documents, it’s easy to see how easy it is to get an instant loan. So, getting an instant loan may be your best bet if you’re looking for a way to get some quick cash.