During the financial year 2019-20, these loans recorded a significant growth. This trend points to the fact that Indians today are availing more credit, often requiring financial assistance to deal with emergencies. At these times, a lengthy loan approval procedure can be detrimental for a lender. This has driven the need for instant or online personal loan applications with quick approvals.
What are instant personal loans?
Generally, personal loan applications involve lengthy documentation and prolonged verification before approval. Thus, a borrower’s request can take a few days or weeks to process, after which the lender disburses the loan quantum.
An instant personal loan, on the other hand, does away with this lengthy process. Instead, eligible borrowers can avail the funds in a matter of hours after loan application.
In case of an emergency, especially medical situations, quick loan disbursal times can be a great aid. Thus, instant personal loans act as a source of instant finance for all kinds of crisis.
Benefits of instant personal loans
Online personal loan applications and approval have led to a range of benefits for the borrower. These advantages are listed below –
- Easy finance with no collateral
Unsecured loans like a personal loan are available without the need to mortgage any asset. Thus, such loans are easier to avail, making them a better option over secured loans. Today, borrowers are freely opting for personal loans to deal with wedding expenses or to plan home renovation or international travel.
- Flexible tenor keeps repayment burden in check
Instant personal loans, like standard personal loans, offer immense flexibility when it comes to choosing a repayment tenor. Borrowers can pick the period that suits their financial situation without overburdening their finances.
Personal loan calculator can aid in determining the suitable tenor for loan repayment. One can adjust the repayment period on this tool until he/she reaches the ideal EMI – a longer tenor accounts for affordable monthly instalments; however, it also increases the overall repayment amount. On the other hand, a shorter tenor brings down the overall loan cost, but translates into a greater monthly instalments.
Using a personal loan EMI calculator should help borrowers get the most out of their lending.
- Existing customers need minimal to no documentation
Existing customers can avail online personal loans with hassle-free documentation process. Reputed NBFCs extend such hassle-free personal loans without the need for pre-approved borrowers to submit any documents, which are otherwise necessary to avail such a credit.
NBFCs like Bajaj Finserv provide such pre-approved offers to simplify and speed up the loan availing process. These offers are available on a host of products, including personal loans, business loans, professional loans and other unsecured credits. Interested applicants can check their pre-approved offers by submitting their name and contact information.
- Quick loan disbursal times
The most important feature of an instant personal loan is its quick disbursal time. This is vital in the event of sudden medical requirement.
A majority of Indians still lack medical insurance. Further, they also often lack the financial backing to pay for quality healthcare from out of their own pockets.
Thus, for these individuals, an online personal loan can be critical, helping deal with any medical emergencies. The availability of easy funds also encourages patients to seek the best treatment available.
As with any credit, a borrower should be mindful of personal loan interest rates. These rates tend to differ from one lender to the next. Thus, comparing the top financial institutions should help an individual avail such credit at the best possible rates.
Find out the factors affecting personal loan interest rate to stand a better chance of availing lower rates. One such factor is the credit score. Borrowers need to hold a minimum score of 750 to apply for such credits and avail the lowest rate of interest.