An instant loan helps you look for a convenient funding option to fulfill all the desires on your bucket list. Even the Buy-Now-Pay-Later is an instant loan that funds your expensive purchases. But the loan goes far beyond as it is essentially a personal loan for which you neither require collateral nor detailed documentation. On the other hand, online personal loan apps like MobiKwik have changed the lending scenario beyond recognition by making the process smooth and easy. So, let us take a close look at the options.
What is an instant loan?
Instant loans are short-term personal loans for various purposes without lengthy processes and documentation. Thus, today you can get an unsecured loan online through digital lenders on liberal terms and at a minimal cost. Therefore, they are the saviors when you are short of funds for your dream wedding or traveling to an exotic destination. So, apply online at a digital platform like the MobiKwik for quick processing and disbursal. But the first step is installing the app on your Smartphone from the Google or App Play store.
What are the different types of instant loans?
- Short-Term Personal Loans:
The facility is catching up in India as digital lenders quickly approve credit under the category for meeting emergency financial crunch. So, apply through an online personal loan app with the required documents, and the money will be in your account instantly.
- Personal Loan:
The popular loan is offered by lenders of all categories, from the conventional to the digital, for varied purposes. Naturally, the loan amount depends upon your eligibility. But the applicable interest rate is usually higher than secured loans, yet you can negotiate flexible repayment schedules.
- Top-Up Loan:
The loan provides extra funds over any existing loan. In addition, the processing is fast, as the lender already has your credit history in place from the existing loan.
- Credit Card Loan:
Usually, credit card providers extend such loans to the holder depending on your repayment history and card spending limit. In addition, they are typically pre-approved, requiring minimal processing and quick disbursal.
- Loan Against Investments:
Most lenders are eager to disburse such loans as the investment instruments act as a security for funding up to 90% of its value. The most common investment instruments for instant loans are Fixed Deposits, National Savings Certificates, and LIC Policies.
What are the salient features and benefits of instant loans?
All types of instant loans have a few standard features; accordingly, you also enjoy the benefits. The critical ones worth mentioning are:
- Paperless processing:
Lenders process instant loan requests through online personal loan apps digitally. So, you upload the required documents online for a paperless vetting and approval of the application.
- Collateral free:
Instant loans are unsecured; hence, you require no security for the loan.
- Speedy disbursal:
The online personal loan app disburses the funds instantly to the credit of your account. So, instant loans are ideal when you need finance immediately as the processing time is negligible.
- Tailored repayment:
You can choose the repayment tenure accordingly to your financial capacity without default. But, it should comply with the lender’s terms.
- Flexible amounts:
You can choose the amount you are comfortable with to repay within the stipulated tenure to avoid penalty. However, it should match the lender’s minimum and maximum limits and your eligibility.
- Competitive interest rates:
The applicable interest rates on the instant loan depend on your credit history and credit score from reliable rating agencies like CIBIL. A good credit score fetches lower interest rates, reducing the cost of funds.
Who can apply for instant loans?
An online personal loan app has defined eligibility criteria for accepting requests. So, the primary criteria to determine whether you can apply are:
- Credit Score: A good credit score of more than 700 helps the lender offer an affordable instant loan keeping the fund cost low.
- Age: The age criterion for the instant loan is specific to lenders. So, check with the lender for the age limits before applying.
- Occupation: Lenders offer instant loans through the online personal loan app to salaried and self-employed individuals but with different eligibility norms.
Instant loans are a convenient short-term funding option to overcome an emergent financial crunch besides fulfilling various wish-list items kept in abeyance for lack of funds. The ideal choice is a suitable online personal loan app providing the credit instantly in conjunction with their lending partners. Moreover, the loan is unsecured, paperless, with quick processing and flexible financial parameters.