Everything You Need to Know About Instant Personal Loans

by Rishika Sharma

Life is full of surprises; sometimes, these surprises can bring unexpected expenses. Whether it’s a medical emergency, a wedding, or sudden travel plans, a fund shortage can make any situation stressful.  

This is where instant personal loans come into the picture, providing a quick and effective solution to your immediate financial needs.

What are Instant Personal Loans?

Instant personal loans are swiftly approved and disbursed, generally within 24 hours. These unsecured loans require no collateral and are primarily based on the borrower’s creditworthiness.

Characteristics of Instant Personal Loans:

  • Speedy approval and disbursement: Most lenders promise approval within minutes of application, with money disbursed into your account within a few hours or a day.
  • Flexible use: Unlike a home loan or car loan, you can use an instant personal loan for any personal need.
  • No collateral needed: These loans are unsecured, that means you don’t need to pledge any assets.
  • Online process: From application to disbursement, the entire process can be completed online, making it highly convenient for the borrower.

The Popularity of Instant Personal Loans 

Today, instant personal loans are becoming increasingly popular in India, with more people looking towards these quick disbursal loans to cater to their immediate financial needs.

Reasons for this popularity:

  • Ease of application: The digital application process is quick and hassle-free.
  • Speedy disbursement: With the money reaching your account within hours, you can meet your financial needs promptly.
  • Flexible repayment: Most lenders offer flexible repayment options, allowing borrowers to repay the loan in a manner that best fits their financial situation.

Eligibility Criteria for Instant Personal Loans 

Like any financial product, there are specific eligibility criteria you need to meet to secure instant personal loans. These may vary slightly between lenders, but there are some common factors. 

Common Eligibility Criteria:

  • Age: Most lenders require borrowers to be between 21 and 60 years of age.
  • Income: You need to have a regular source of income, either from salaried employment or self-employment.
  • Credit score: A good CIBIL score increases your chances of loan approval. Depending on the lender, the minimum required score ranges from 650 to 750.

When performing a CIBIL check for loan approval, remember that a score above 750 is considered excellent. However, don’t worry if your score is lower – there are still ways to improve it.

How to Improve Your Credit Score 

If your credit score isn’t as high as you’d like it to be, don’t worry – there are several steps you can take to improve it.

  • Limit your credit utilisation: Avoid exhausting your entire credit limit. A lower credit utilisation ratio suggests better credit management and positively impacts your score.
  • Check for mistakes in your credit report: Any errors in your report can lead to a lower score. Regularly checking and rectifying any inaccuracies can help improve your score.

How to Apply for Instant Personal Loans

The process of applying for instant personal loans is relatively easy. Here’s a step-by-step guide.  

  • Research: Look for lenders who offer the best interest rates and terms that suit your financial situation.
  • Application: Fill out the online application form and upload necessary documents.
  • Approval: The lender will review your application and documents. If approved, they’ll send you a loan offer.
  • Acceptance and Disbursement: Accept the loan offer if you’re satisfied. The loan amount will then be disbursed to your bank account.

Conclusion 

In a world that is moving quickly, instant personal loans provide a financial solution that keeps up with your lifestyle. Whether it’s an urgent need or a planned expense, these loans can be your go-to option.

You may also like

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
-
00:00
00:00
Update Required Flash plugin
-
00:00
00:00