We all understand the importance of money and how a need for some urgent cash can arise in anyone’s life at any point. Financial institutions and technology have made it possible for a person to take a loan instantly in a few simple steps online. These unique loans are called instant loans. Let’s understand what exactly an instant loan is.
What is an Instant Loan?
As the name suggests, an instant cash loan is a money borrowed from a financial institution online by filling out an application and submitting relevant documents. Banks or non-banking financial institutions provide instant loans to the people who are eligible for them. This loan is also popularly known as a personal loan, as people often borrow money through it to fulfill personal expenses.
Features of an Instant Loan
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Convenient to apply
As you can apply for an instant personal loan online, the application procedure becomes convenient. Unlike traditional loans, there is no need to go to your lender’s office and sit through the tiring process of application. It can be done with the comfort of sitting at your home. The entire application process is only a few minutes of task with these online loans. Even people who are not very tech-savvy can proceed with the online application with ease. Most lenders have a simple interface and have given clear instructions on their platform on how to go about the loan.
Simple documentation
With loans, the first thing that comes to mind is the endless documents that need to be gathered and submitted to the lender. Well, that is not the case with instant personal loans. You are only required to upload copies of essential documents directly to the lender’s website or mobile application. The documents need not be photocopied and signed by you individually, which makes the entire documentation process simpler by a dozen times.
Fast disbursal
They’re known as instant loans for a reason. Since the procedure to apply for an online personal loan is entirely online, it also makes the disbursal of the loan amount swift. With the help of technology, the verification process has become fast. The amount gets credited directly to the bank account of the borrower post the approval of their application.
Short and long tenures available
Banks/NBFCs let you pick the tenure at the time of application for the loan. You are given a few options, out of which you can select the most suitable to you depending upon your income. You can choose a shorter tenure if your repayment capacity allows and become debt free as early as you want. However, if you have other financial commitments to fulfill, you can select a tenure on the longer end. It will allow easy EMIs for you every month and less burden to pay off the debt.
Same day approval
Instant personal loans online offer the outstanding feature of same-day approval. If you urgently need money, instant loans can be counted on. You are only required to provide the basic information asked by the lender, upload the documents to their site, and wait for approval. Unlike conventional loans, where you have to wait for weeks for approval on your loan, if the documents are satisfactory, instant loans do not take more than 24 hours to get approved.
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Use however you want
These loans have started becoming the most opted-for loans as they do not come with a restriction on usage. You can spend the loan amount on a gadget if you desire or a vacation that you have been longing to take. People even take this loan to manage their wedding expenses. If you wish to take up a loan to pay off the debt of another ongoing loan, you can do so as well. Moreover, the money can also be used for any emergencies. Instant loans are outstanding for emergencies, especially medical ones, as the amount can be borrowed within 24 hours.
Eligibility criteria for the application
An applicant must fulfill the below-mentioned conditions to be eligible to apply for this loan:
- They should be a citizen of India.
- They should be between the age group of 21 to 63.
- They should have a credit score of 750 or higher. However, some lenders offer the loan on a lower credit score as well. You can always negotiate with your lender by increasing the interest rate.
- They should enjoy a minimum income every month as decided by their lender.
Documents required to obtain an instant loan
Mentioned below is the list of documents that are required to apply for an instant loan online:
- Any one proof of identity (Aadhaar card, PAN card, driving license, voter ID card, etc.)
- Any one proof of address (electricity bill, ration card, passbook, etc.)
- Proof of employment (employee ID card)
- Proof of income – salary slips for the last two months, bank statements for the previous three months for salaried applicants, bank statements for the last six months, and ITR/ form 16 if the applicant is self-employed.
Steps to apply for an instant loan (online)
Following are the steps to apply for an instant loan online:
- Visit your lender’s official website or download their mobile application
- Login to the website or sign up on the app if you are a new user
- Go to the loans section and click on the application button
- Fill in all the details as asked on the webpage
- Pick the desired loan amount and the repayment tenure
- Once you have filled in all the details, proceed by uploading all the necessary documents to their portal
- Post completion of the upload, wait for an approval
- Once all the documents get verified, you will receive the approval for your loan the same day.
Summary
An instant loan can come to your rescue when you are in need of some urgent money. Be it for a medical emergency or to fulfill a luxury wants. This unique loan has been designed in a way to help people quickly. Financial institutions are willing to lend you the loan amount if you can prove your financial credibility to them. You can apply for the loan online in a few simple steps and pick the desired tenure as your income allows.