Unforeseen emergencies can disrupt your short and long term plans. It can throw your finances in disarray. Whether it is a medical emergency or tuition fee, motor vehicle purchase or wedding, home improvement or repair, everything can pose a challenge when you do not have the money required to finance the event. Fortunately, instant personal loans online have emerged as a viable alternative to high-interest loans. These loans are instantly approved, require minimal documentation, provide an extended repayment tenure, and does not need collateral security.
This article mentions why you should consider an instant personal loan online while being stuck in a financial emergency and cash crunch.
What is An Instant Personal Loan Online?
It is an app-based loan that any Indian citizen with a stable income source can apply. Unlike loans like loan against property or home loan, an instant personal loan online does not require a collateral guarantee. The loan is approved based on the borrower’s monthly income, financial stability, credit score, loan amount, and repayment capability. The borrower’s credit score plays a crucial role here. You can often get instant approval and the lowest personal loan rates when your credit score is above 750. However, if your credit score is below the magic figure, you do not need to worry, as lenders like Fullerton often approve instant loans based on income and debt-to-income ratio. But, you may have to pay a little more than the lowest personal loan rates.
The Top-7 Advantages of Instant Personal Loan Online
1. Convenient Application Process and Instant Approval
During an emergency, instant cash arrives as a blessing. Perhaps the most significant benefit of a personal loan online is instant approval. You do not need to visit a lender’s office with multiple documents and wait in an endless queue for meeting the loan officer. Whenever you face a cash crunch, conveniently download the loan app and apply online. The lender requires a few documents to verify your eligibility online. Once they find your profile suitable, they approve the loan instantly. Generally, borrowers receive the loan amount within twenty-four hours from the time of loan application.
2. Attractive Interest Rate
It is not difficult to find the lowest personal loan interest rates if you compare the rates of several lenders. Personal loan interest rates usually start from 11.99%. Hence, the EMIs start from a lowly INR 2,224. Lenders often offer discounted rates to people with a stable credit score. However, the applicable rate depends on the loan amount, repayment capability, and type of interest. The fixed rate of interest is usually 1%-2% higher than floating-rate loans.
3. Extended Repayment Term
Instant personal loan online provides a repayment term of up to five (5) years. The lowest term can be one year. Hence, you can choose the repayment according to your preference and conveniently repay the dues before the last EMI date. You can also prepay the loan in the first part of the loan term, which can reduce the loan expenses. Lenders usually waive off the prepayment or foreclosure penalty on floating rate loans.
4. High Loan Amount
An instant personal loan online can provide you with an amount of up to INR 25 lac. If you have a long-standing relationship with the lender, they may even increase the amount to INR 30 lac. Generally, the loan amount depends on the borrower’s eligibility. The better you are with loan repayments, the higher will be your eligibility.
5. Spend Liberally
When you apply for an instant personal loan online, you get ‘no-questions-asked’ money. Hence, nobody ever asks you any questions regarding how you plan to spend the amount. Some borrowers withdraw an extra amount than their requirement and use it for multiple reasons. However, since any loan, including instant personal loans, are a liability, you must evaluate your repayment capability before deciding the loan amount.
6. Minimal Documentation
When you need money urgently, you might not arrange many documents. Thankfully, an instant personal loan online does not require many documents. You can upload personal loan documents like Aadhar card, PAN card, income proof, and Income Tax Returns and avail of the loan quickly. The entire process from application to approval is online, eliminating the need to visit the lender’s office.
7. Easy Eligibility
Any Indian citizen can apply for an instant personal loan online. Lenders specify a minimum income criterion for eligibility purposes. Salaried professionals can apply for a loan when their income exceeds INR 25,000. Self-employed professionals need to show that their income is decent.
Instant personal loans online often offer the lowest rates to eligible borrowers. Try comparing the terms and interest rates of various lenders before choosing the best one.