Getting loans these days has become quite an easy task. People don’t have to stand in long queues at the banks and NBFCs to apply for a loan. Rather, they can just browse through the lender’s website and get loans. Generally, to meet personal needs, individuals apply for personal loans. The personal needs can be funding a wedding, children’s education, or a vacation fund. With the growth of technology, lenders can now offer instant personal loans to customers. An instant personal loan is the best way to draw out funds during an emergency. These are the same as personal loans. The only difference is that an instant personal loan offers quick disbursal.
Like other types of loans, for instant personal loans also you have to meet certain criteria that your lender will set. These criteria will include your repayment history, income status, etc. There are various lenders in the market offering instant personal loans at attractive interest rates. So, before you apply for a personal loan, check out all the options and opt for the one that will suit your needs.
In this article, you will learn how to get an instant personal loan online.
Instant Personal Loan: Online Process
To apply for an instant personal loan online, you need to follow these basic steps.
- Click on the lender’s website or download the lender’s instant personal loan app.
- Select the type of loan that you want to apply for. For instance: select personal loans.
- Then you have to fill in the loan application with your name, address etc.
- You will also have to attach documents that the lender might ask for. (In the case of instant personal loans, the paperwork is minimum)
- Once the representative of the bank of NBFC is convinced that you are eligible for the loan, they will disburse the loan in no time.
Instant Personal Loan: Offline Process
You can also apply for instant personal loans offline. Instead of visiting the lender’s website, you can physically go to the nearest branch of the bank or NBFC. Then an employee will hand over an application form where you have to fill in the same details as mentioned above. For the offline process also, you may to provide certain documentation that the lender(s) may ask for. And once they go through your profile and acknowledge your eligibility, you will receive the fund.
Eligibility for Instant Personal Loans
As a borrower, you must meet the eligibility criteria to get your loan approved. The eligibility for personal loans usually varies from one lender to another. However, the common qualifying conditions are:
- Employees of private limited enterprises and those working for public sector organisations, such as federal, state, and local governments can avail of personal loans.
- Those between the ages of 21 and 60 Those who have worked for at least two years, at least one of which was with their present employment
- Those with a minimum monthly net income of Rs.25,000
- If you run your own business or work for yourself, the lender will base the loan amount on the revenue generated and noted in the profit and loss account. If you are a professional who is paid a salary, the lender will calculate the amount depending on your income and other obligations.
- You also need to have a credit score of more than 750 to avail of a personal loan instantly.
Documents for Instant Personal Loans
Though not many documents are needed to get instant personal loans, some of the basic ones are as follows:
- After you have learned the eligibility process, you should start collecting the documents required to avail of the loan. These documents may vary from lender to lender. They include Valid Identity proof such as an Aadhaar card, voter ID/passport, ration card, PAN card, or driving license. Address proof such as Aadhaar card, voter ID/passport, driving license or water, electricity, telephone bill.
- As income proof, individuals (working in private and government sectors) can provide a Bank statement or passbook of the previous three months.
- The above-mentioned documents contain age proof. But, in case they don’t have valid age proof, one can use their school leaving certificate, birth certificate, or PAN card as valid age proof.
- IT returns from the previous two years, P&L accounts, balance sheets, or bank statements from the previous six months for self-employed people.
- The borrower must complete an application for a personal loan with all the necessary information, agreements, and due dates. Some forms can also be found online on the lender’s website.
- The lender will review your profile after you submit the application form and the required papers. And after you have fulfilled all the lender’s standards, you are approved for the personal loan.
Benefits of Instant Personal Loans
Instant personal loans come with a multitude of benefits. These are as follows:
The approval process requires zero to minimum paperwork
While applying for instant personal loans, the lender usually asks to upload all the documents online. Thereby, saving both time and paper. Also, if you are already approved, then you may require little or no paperwork for the process.
No security (collateral) is necessary
Since instant personal loans are unsecure type of loans, you do not have to provide any collateral.
Loan tenures are flexible
Generally, when borrowers wish to avail of instant personal loans, lenders tend to provide them with customisable and flexible tenures. The lender will first discuss the minimum to maximum repayment terms with you. And after you understand the terms, you can choose a suitable repayment tenure for yourself.
Interest rates are reasonable
If a person applies for an instant personal loan, lenders tend to give him/her an affordable interest rate. But, everything comes with a price. And to get an attractive interest rate on the desired loan amount, you must keep a good credit or CIBIL score.
Loan amounts are flexible
Just like the tenures, the loan amounts for instant personal loans are also flexible. The lender will specify the minimum and maximum loan amounts to the borrowers and they can choose it as per their needs.
Instant personal loan uses
There are various uses for instant personal loans. Some of them are as follows:
Renovating a home or buying a home can be a huge expense. And for most people, it is not possible to spend all their savings for that purpose. To meet such an expense, instant personal loans can be a wise option. Plus, you don’t have to pledge anything as collateral to get the funding.
Certainly, a wedding is an important day in anyone’s life. And you want to it do perfectly. Starting from the venue booking, to buying ornaments and wedding attires, the celebration is grand. And if you don’t want to spend all your money on weddings, then taking an instant personal loan is a good decision.
If you are planning a mid-cost vacation, then you may not require not to take a personal loan. But, if you are planning to go on a foreign trip or a luxurious cruise, then you should get a personal loan instantly.
Now that you know about the uses, applications, benefits and other important things about instant personal loans, get one to meet your financial needs.