How to Get an Instant Loan
There are many occasions in today’s time when we need money immediately. Whether it is a medical emergency, wedding preparations, children’s education or any other reason, the need for an instant loan may be felt. In the digital age, banks and other financial institutions have made the loan process easy and fast. Now you can get an instant loan from your mobile or laptop sitting at home.
In this article, we will know how you can get an instant loan, what documents are required, and by what process this loan is given.
1. What is an instant loan?
An instant loan is a loan that you can get in the shortest possible time through online medium. It is also known as a personal loan, short-term loan or online loan. The process of getting this loan is fast and for this banks or financial institutions need documents like your credit score and Aadhaar card.
2. Eligibility Criteria for Instant Loan
To get an instant loan, you have to fulfill certain eligibility conditions. The following are the general conditions:
- Your age should be between 21 and 60 years.
- Your credit score should be good, which is usually 750 or above.
- You should have a stable income source.
- In some cases, it is mandatory to have a bank account.
3. Documents required for instant loan
The documentation process for instant loan is also very simple. In most cases, only the following documents are required during online application:
- Identity card: Aadhaar card, PAN card, voter ID or passport.
- Proof of address: Aadhaar card, electricity bill, ration card or passport.
- Income certificate: salary slip, bank statement, or income tax return.
- Passport size photo.
4. How to get instant loan?
Now let’s find out how you can get an instant loan.
Use of online loan apps: Today many loan providing companies have launched their mobile apps that provide you loans in minutes. Apps like Paytm, MoneyTap, KreditBee, Dhani, and CASHe are prominent among them.
Download these apps and upload your information like name, address, and documents.
The apps will calculate the eligible loan amount for you based on your credit score.
Once the process is completed, your loan amount will be transferred to your bank account instantly.
Online Loan through Banks: Now almost all major banks provide online personal loans. You can apply for a loan through the website or mobile banking app of banks like SBI, ICICI, HDFC, and Kotak Mahindra.
- Go to your bank’s website and look for the instant loan section.
- Upload the required details and documents and start the loan process.
- After checking the eligibility, the loan amount is sent directly to your bank account.
- NBFCs (Non-Banking Financial Companies): Non-Banking Financial Companies (NBFCs) also
- provide instant loans. Their application process is very simple and fast.
You just have to apply on their website or app and they process the loan quickly after checking your documents.
5. Loan amount and interest rate
The amount of instant loan can usually range from ₹10,000 to ₹5,00,000, depending on your requirement and eligibility. Interest rates can also vary according to the institution. Generally, the interest rate can range from 10% to 24%.
6. Loan repayment tenure
The repayment tenure of instant loan usually ranges from 6 months to 5 years. You should choose the repayment tenure according to your requirement and monthly budget.
7. Benefits and risks
Benefits of instant loan:
- Instant money requirement is met.
- It is an online process, which saves time.
- Minimum documents are required.
Risks of instant loans:
- Interest rates can be high.
- There may be a penalty for late repayment.
- Your credit score can suffer if you don’t repay on time.
Instant loans are a convenient and quick way to get money when you need it in an emergency. However, you should study the terms and interest rates thoroughly before taking a loan. Also, make sure you can repay the loan on time so that your credit score is not affected.
This guide provides you with information on the right way to get an instant loan. With the right planning and smart decisions, you can meet your financial needs.