There are many times when you come across unanticipated personal expenditures for which you might not have sufficient funds. An instant credit option can be the correct option in such cases. These are simple to apply online options and are available for shorter repayment tenure including instant processing. Most instant loans like the Rupeeredee loan, or Prefr loan, even need minimum documentation and are quickly disbursed.
What are the distinct kinds of instant loans?
A few of the common kinds of instant loans are –
Short-term personal loan (STPL) –
A short-term personal loan is beginning to get highly popular in India and they are available in the form of loan, which may be as low as Rs 2,000. These are offered by many digital lenders and NBFCs. It is the best choice when it is about dealing with month-end monetary problems. To get this loan, you require to apply online or via an app to upload your required documents. Once you do so, the required funds will be disbursed instantly to your bank account.
Personal loan –
This is a popular and unsecured loan that can be availed by the masses to simply deal with monetary crises. Many NBFCs and banks provide this loan beginning from Rs 30,000 up to Rs 40 lakh and process the loan depending on your personal loan eligibility. The rate of interest on this loan is usually higher than a secured loan and the repayment tenure is highly flexible to pay back the loan according to your convenience.
Top-up loan –
You can use this credit option to top up your loan and get additional funds over the existing loans like personal loans or home loans. As the lender already has all the personal information and documents, it is a very simple process, which can be completed by filling out a form and completing certain formalities.
Loan against credit card –
If you hold a credit card, this kind of loan might be provided to you by issuers based on your repayment history as well as your credit limit. Loan, which is preapproved requires minimal processing and funds get disbursed instantly. You also can contact your issuer to place an application for this loan.
Loan against insurance and savings –
Many NBFCs and banks provide this loan against savings like insurance, national savings certificates, or fixed deposits. This loan is even known as a demand loan. However, the loan proceeds that you may get depend on the policy’s or NSC’s maturity value. If you hold a clean repayment history, you might get the loan proceeds of up to 90 per cent of your insurance or savings value.
What are the reasons for a personal loan to be attractive?
A personal loan is a loan, which is availed for personal activities like expenditures for college, medical expenditures, purchasing new equipment or gadget, etc. Your credit score and documentation required to be in place to avail a personal loan. There are various features you can make the most out of if you avail an instant loan.
Security-free loan –
As a majority of personal loans may be security free in nature, it assists you to access a massive amount of funds, which may be repaid on monthly basis in the form of an EMI. Owing to its security-free nature, it is simpler than any other credit card-based loan or secured loan. A lender or financial institution offering the loan assesses your cash inflow and income to assure a secure compensation. Security-free loans are promised by NBFCs and fintech companies in India with zero past track history to endorse personal loans.
Affordable rate of interest – As the repayment is dependent on the rate of interest, which is determined by yearly percentage, the borrowing becomes affordable if opted for the personal loan. It is one of the prudent ways, particularly during the COVID pandemic, as rates of interest are reasonable. Also, the rate of interest is factored in on a reduced balance basis. If you are an amateur or first-time borrower, then your rate of interest is higher as compared to the tenured loan borrowers as they hold a higher credit profile and score. If you regularly repay after availing a personal loan, you will have a good score, which would endow you with reduced interest on upcoming credit options.
Flexibility owing to personal loan – In most of the scenarios, you aren’t questioned by the lenders regarding why you must borrow. A personal loan is a prudent way through which you can consolidate your debt. Personal loan offers flexibility at cheaper rates than credit card loan option.
Simple to access owing to personal loan – India is excelling in the digital transformation and with Aadhar cards can offer quick personal loans. The process involves KYC authentication, and biometrics and the code is sent through mobile. Also, it uses e-sign, Digi locker, which authenticates documents and certificates digitally. Finally, the sanctioned loan is either via an online portal or an instant loan app through UPI.
What are the benefits of placing an application for an instant personal loan through the online platform?
If you are looking for instant access to a personal loan, ensure to apply using a personal loan application as it can save time as well as the exhaustion of borrowers from constant door-to-door running to the financial institution. There are various instant loan applications available in the market nowadays. Being a borrower, you may apply for, get approval, and get a loan from the comfort of your home. Mentioned below are a few advantages of using personal loan applications.
Best for the exigency problems – As we prefer personal loans during emergency and critical situations, approaching a lender and then applying for the loan and waiting for the same becomes a time-consuming process. With the assistance of online instant loan application, the time taken up for this long-time process is saved.
Less documentation – Applying for a personal loan via the instant personal loan application route requires fewer documents than the offline procedure. You can simply avoid the hassle and stress involved in documentation as the online procedure is extremely convenient. It just involves uploading documents like identity proof, income proof and address proof. This can simply be done in a few clicks right from your home.
