There may be times wherein many of us come through a few unforeseen personal expenses for which we may have a scarcity of funds. In such cases wherein instant money is needed, an instant loan can be the correct alternative. These loans have an easy application procedure and are for a lesser duration, have fast processing and minimum documentation, and are also disbursed quickly.
An instant loan is a temporary tenure loan that is usually for a small amount of money and carries interest rates. An instant loan facilitates the procurement of cash instantly. At times, it can be within the same day, even if a strong credit score is unavailable. Obtaining quick cash for contingent costs like paying medical bills or getting a car repaired may be a solution.
Primarily, loans can be divided into two types: Secured loan and Unsecured loans. Stated below are a few types of instant loans:
- Short Term Personal Loans (STPLs)
STPLs are gaining popularity in India, and various NBFCs and virtual lenders provide this variety of loans. To get this loan, all you need to do is apply online or via the application, upload the required documents, and the funds will instantly get disbursed to your account.
- Personal Loans
One of the most availed varieties of loans, these can be helped by people to deal with financial adversities. Many NBFCs and banks provide these loans in the range of Rs. 30000 to Rs. 40 lakhs, and the sanctioning procedure depends on the applicant’s eligibility. Normally, the interest rate on this type of loan is comparatively more than a secured loan, and the repayment tenure is flexible.
- Top-Up Loan
This type of loan can be availed to get a top-up loan and procure additional funds over and above loans that already exist, like a personal loan or home loan. It is simple to process this loan since the bank already has the user details and necessary documents, so only a form is to be filled out, and a few other formalities are to be completed. Lastly, it is important for the user to have a good credit line of repaying his financial obligations on time.
The Primary Characteristics and Advantages of Instant Personal Loans:
- No Paperwork Needed for Approval
While applying for a personal loan, you should submit the appropriate paperwork, post which the loan request gets processed. Whereas, in the case of applying for an instant loan online, all the documents are to be submitted online, thus facilitating paperless transactions.
- Quick Disbursal
In case of immediate cash requirement, it is recommended for the users to apply for an instant personal loan because the approved funds will get disbursed to their account quickly.
- Least Processing Time
The processing time in the case of instant personal loans is tremendously lesser when compared to the time required for processing regular loans.
- Flexible Loan Durations
In most cases, after availing of an instant personal loan, you are provided with a customizable loan tenure that allows you to select a repayment duration as per your preferences, subject to the highest loan repayment duration of the lender.
On an ending note, Instant loans are short-term loans offered to self-employed individuals and salaried employees, for which you can apply while looking for a simple and reasonable financing option. The entire application process is online and can be easily completed anytime, anywhere.