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Instant Personal Loan

Instant Personal Loan

Emergencies can occur anytime, but not everyone is prepared financially & mentally to tackle the situation easily.

Emergencies often give birth to numerous other problems, the financial crisis being one among them. A smart individual always looks for the right option to get instant financial aid and an instant personal loan is one of the best-suited options for such situations.

What is an Instant Personal Loan?

Instant personal loans are the specific loan type that doesn't require heavy documentation and get approved quickly. The best part of getting an instant personal loan is that no collateral or guarantor is required. Instant personal loans are often called quick loans.

What are the features of Instant Personal loans?

Undoubtedly, there are multiple benefits of taking an instant personal loan; below are the best of them.

Paperless Digital Process: The first and foremost trait of taking an instant personal loan is getting 100% paperless. When applying for a regular personal loan, you might require submitting some paper/documents to the bank/lender.

However, when applying for an instant personal loan, all your documents are uploaded online, which eliminates the hassle of manual paperwork submission and waiting for their approval. Most instant personal loans come with zero paperwork.

Least Processing Time: Short disbursal time has already given the knowledge about low processing time. You don't need to wait for days with an instant personal loan. Instead, the entire process takes minimal time compared to regular personal loans.

No Collateral & No Guarantor: Most banks/lenders require collateral for various credit facilities. However, the instant personal loan is completely collateral-free. It means you don't need pledging your collateral or adding any guarantor to the personal loan documents. That's the reason instant personal loans are categorized under the unsecured loan.

Competitive Interest Rate: The growing digital era has introduced multiple loan lenders into the market. This has increased the competition, offering you various loan opportunities for your needs. Interestingly, this has also provided instant personal loans with highly competitive interest rates. You can easily compare different lenders to choose the one offering a low-interest rate on your personal loan application.

Flexible Loan Amount: If you are looking for a small loan amount, instant personal loans are the right option to choose. The loan amount is available based on your needs, subject to your eligibility criteria & maximum loan limit.

Customized Loan Tenure: All instant personal loans come with flexible loan tenure. You can choose the repayment tenure based on your financial situation and future plans. It's recommended to take short repayment tenure to clear the debt quickly. It will also help you pay less interest on the principal loan amount.

Instant Disbursal: The biggest hurdle for an individual is getting funds instantly. The instant personal loan isn't like other loan types, as the entire process can take a few minutes.

Yes, you read it right! If everything goes well and you get approval for your loan, the loan is disbursed within a few minutes.

Who is eligible for an Instant Personal Loan?

Before applying for an instant personal loan, it's crucial to know its eligibility criteria. Below are the pointers that will help you understand whether you qualify for the personal loan or not.

Credit Score: A credit score is a basic need to qualify for an instant personal loan. A credit score is a three-digit number given by the credit bureaus in India based on your credit history. There are different ranges of credit scores that define your creditworthiness. Below is the table that tells you different credit score ranges and their respective grades.

Range Grade
-1 or 9 No Credit History or New to Credit
300 - 550 Bad
551 - 649 Poor
650 - 699 Fair
700 - 749 Good
750 and above Excellent

Age: The least age for instant personal loan differs from one bank to another. However, most banks have 21 as the minimum age to qualify for an instant loan. It's important to note that the age might different for salaried and self-employed individuals. You can visit the official website of Banks and NBFC's to know the minimum age limit for a personal loan.

Occupation: Instant personal loans are available for salaried and self-employed individuals. However, the loan amount, interest rate, and tenure might differ for them based on their credit history and income status.

Points to consider when applying for an instant loan

Now, you have sufficient knowledge about an instant personal loan. Yet, below are a few crucial points you must consider when applying for an instant loan.

Processing Fees: Borrowers need to pay a one-time processing fee to almost all banks and financial institutions offering instant loans. You have to pay more for your loan if there is a high processing fee.

Interest Rate: A lender's interest rate impacts the loan's overall amount. Therefore, before applying to a specific lender, verify the interest rate at which the loan is given. It's better to compare different lenders to find the lowest interest rate on the quick loan.

Loan Amounts, Minimum and Maximum: Carefully analyze the loan amount offered while comparing immediate personal loan offers from various lenders. For instance, if you want to apply for a Rs. 15 lakh quick loan, you should only look at lenders who enable borrowers to borrow up to Rs. 15 lakh.

Default Penalty: The lender may impose a penalty on you if you fail to make your scheduled EMI payment. Comparing the default fees assessed by various lenders/banks is crucial.

Repayment Flexibility: If you want to pay off your loan before the loan term, it is preferable to choose an instant loan that gives repayment flexibility, such as allowing you to make pre-payments or part-payments towards your loan amount.

What are the alternatives to Instant Personal Loans?

If you are not interested in taking an instant personal loan, knowing the alternatives you can choose to handle your emergencies is essential.

Short Term Personal Loans: They are also known as STPL and are getting popular in India. Under STPL, you can get a loan of as low as Rs. 1000. Nowadays, most digital lenders offer you a short-term personal loan that helps you get a small amount for your emergencies.

With a completely online process, this has become a popular option for people across the country.

Top-up Loan: If you are already running a loan, there is an option of a top-up loan that allows you to get extra funds above your ongoing loan amount. Usually, these top-up loans are available on most credit facilities, including home loans, vehicle loans, personal loans, etc. With a few formalities, you can get the extra funds.

Loan against Credit Cards: If you are a regular user of credit cards and have built a strong reputation with the credit card lender, you can easily get a loan against your credit card. Your credit history is used to calculate the maximum loan amount and eligible interest rate. Nowadays, most banks/lenders reach you with an instant loan against your credit card. However, you can also reach them if you have specific requirements or haven't received a call.

Loan against Saving Account: Not many of you know that you are eligible to get a loan against your saving account if you have any insurance policy, FD, or National Saving Certificate. However, you must note that the loan amount is entirely based on the maturity amount.

How to increase your chances of getting an instant personal loan?

Check your Credit Score: A credit score gives you the initial insights into your eligibility for a personal loan. A higher score assures you of a quick loan. However, for low credit score holders, it's essential to work on their score and bring it above 750. You might get a personal loan with a low credit score, but the interest rate might be higher. You might also require a guarantor if the lender isn't satisfied with your credit history.

Don't apply for multiple loans at a time: If you are looking for a quick loan, it's better to research before applying. Once finalized, apply to a single lender and wait for their response. Making multiple loan requests have an adverse impact on your credit score.

Maintain a low debt-to-income ratio: Debt to income ratio is the ratio of your total monthly EMIs and your monthly income. You should always maintain a low debt-to-income ratio to stay eligible for the instant personal loan. It's better to keep your debt-to-income ratio below 30%.

Opt for the long-term loan option: Getting a long-term loan always helps you to upgrade your credit score. It will simultaneously help you manage low EMI, reducing your financial stress and minimizing your chances of defaulting.

If needed, you can use the EMI calculator and check your monthly installment for the required loan amount and expected interest rate.

That said, you have earned sound information about an instant personal loan. Today, instant loans have made it possible to meet any emergency without worrying about the financial shortage. So, make a smart choice today and stay stress free in case of urgent fund requirements.

Instant Loan Apps: Let's explore options of Instant loan, Lots of Financial Institutions are trying to solve long time of disbursements problem to Instant Disbursements. Most if the time Financial Institutions takes time due to income and credit verification. Right now, there have some instant loan apps disbursing loans instantly or in few hours.

Loan Type Name Min Loan Amt. Max Loan Amt. TAT
EarlySalary Salary Advance Loan 10,000 200,000 120 Min
mPokket Instant Loan 2,000 30,000 60 Min
KreditBee Instant Loan 1,000 10,000 60 Min
PaymeIndia Instant Loan 1,000 10,000 30 Min

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