Are you in need of an instant personal loan? Here’s everything you need to know…
If you have fallen short of money and are in dire need of it due to some medical emergency or home renovation, then personal loans are a great way out. As the name specifies, these are for personal use and are not defined by any specific purpose. Since these loans are not secured using collateral, there are stringent regulations taken by banks in approving any personal loan application. Certain factors are considered by banks and other lenders while approving the instant personal loan application. These include:
- Your credit report – This gives an insight into your paying history. Your credit score depends on how responsible you have been with your debts in the past. If you have paid your debts in full and on time, your credit reports will mention them. The credit bureaus report your CIBIL score which is a representative of your creditworthiness. This score ranges between 300-900, with the lower end of the range showing that you have delayed making payments on your previous debts, and the higher CIBIL score showing you have been a model debtor. A score below 750 results in the rejection of your application for a loan online.
- Your capacity to pay back the loan – Despite having a good credit score, the lenders often check the capacity of the borrower to repay the debts. This includes looking at your income and assets. Sometimes, they might ask for collateral to cover any risk, especially if the amount is high. This is basically to cover all their bases as anyone can see a decline in their fortunes. People may lose their jobs or see a decline in their business investment thereby diminish their ability to repay their debts. Usually, any property, vehicle, FDs, etc. is taken as collateral in case of a personal loan, especially, if it is of a higher amount. In case of non-payment, the lender has the right to sell the collateral for recovering their investment.
- Your age and experience – Any creditor, whether it is a bank or a private lender prefer to approve the loan of individuals belonging to the 30-50 age group. This is primarily because individuals of this age group have enough experience in their hands and many years of service left. This improves their chances of repaying the loan. People who are already 60 years of age or nearing that benchmark will find it difficult to pay back any personal loan they take, thereby reducing the chances of the creditor getting paid back.
What is an instant personal loan?
In a world of instant likes, dislikes, friendship, and hostility, organizations have also started offering instant loans too. Since most banking procedures have gone online with an emphasis on paperless transactions, getting loans too has become easier. If you require instant cash to sponsor a spontaneous trip with your friends or need to upgrade your wardrobe for a wedding, you can opt for an online instant loan. Just like personal loans, they can be used for any reason, a medical or business emergency, the only difference being you get them instantly!
What makes them extremely popular?
Though the instant personal loan is like a personal loan, the quick application process and faster handling time contribute significantly to their popularity. Compared to conventional bank loans, the time taken to get an instant loan online is reduced. You are no longer required to make the mandatory bank visit and fill explicitly long forms for the same. The CIBIL score of any individual can be easily available online now. The presence of programs for risk assessment makes the job easy for creditors to determine whether the applicant is eligible for the loan or not. Some of the salient features of instant loans include –
- You can borrow an amount as less as a few thousand to up to a couple of lakhs.
- The duration of these loans is between two months to a year.
- Compared to personal loans offered by banks, these loans are processed faster.
- Usually, these loans are approved the same day of application as the entire process takes place online.
- As the process takes place online, you can apply for them from the comforts of your home or office.
Who can apply for these loans?
There is no restriction when it comes to applying for an instant loan online. Even people with a bad credit history or no guarantor can apply for these loans. As long as you are a salaried individual employed in a registered company of India and are a resident of India you can apply for instant loans from any creditor. However, there is an age limit for individuals applying for instant loans; you need to be in the age group of 23-58 years to avail of this opportunity.
How can you apply for them?
Before applying for an online instant loan, you need to do your research properly on the creditors providing this type of loan. Ensure that you find out the terms and conditions of the loan along with the interest rate at which the loans are offered. Once you have decided on the company, you should download the app for the same. You can register yourself on the app by creating a profile or logging in using your social media profile. You need to enter the amount you would like to apply for and the time for which you need the loan and then upload the required documents for the company’s perusal. You can find out whether your instant loan has been approved or not by checking its status on the app.
What documents are required for applying for instant loans?
When you are applying for an instant personal loan you need to provide identity proof (PAN card, Aadhar card, passport, or driving license), address proof (passport, electricity, water, or phone bills), a photograph, your salary slips, as well as bank statements which provide an inkling of your financial situation.
If you are looking for an instant personal loan, you can try www.everydayloanindia.com/apply-now.php for the same.