What are instant loans
Instant loans are personal loans that you can apply for online. You get the money credited to your bank account in as soon as two hours. You can avail of an instant loan online ranging from Rs. 5000 to Rs. 5 lakhs without any documentation. Upon new signup itself, you can avail of an instant loan of say 1 lakh.
Trusted loan apps like PaySense offer a completely online loan process and instant loan approval. Instant loan is one the fastest ways to get personal loans.
How instant personal loans make our life easier
Since the start of banking, applying for a personal loan was a cumbersome process involved with much stress, tension and was highly time-consuming. Because of that, it was critical to introduce a new kind of lending process that could make it easier for people to avail of personal loan. So, the instant loan was the need of the hour.
An instant personal loan is a new-age solution in the domain of lending. Instant loans solve many problems.
Tips to consider before applying for instant loan online
Below are the 6 tips you must consider before applying for an instant loan online:
1. Stay aware of your CIBIL score and repayment history
Instant loans require the applicant to have a CIBIL score of over 750. Your credit score denotes your repayment history and credit usage. The better you have utilized your credit card facilities, the better is your credit score.
A good credit score denotes that you are credit-worthy and will be timely with repayments if offered the loan.
There are chances based on the discretion of the lender that an applicant with a low credit score is allotted a loan online, but it would be charged at high interest rates. So, before you apply for an instant loan, it is a good idea to be aware of your credit score.
2. Read the fine terms and conditions
Generally, before e-signing the loan agreement of instant loan, a customer is made aware of the terms and conditions and rules and charges. Still, it is your responsibility to be mindful of every detail of the product before signing the agreement. Reading the fine terms and conditions save you from future shocks and surprises and make you aware of your responsibility as a borrower.
3. Keep the required documents ready for upload
Keep documents like photographs, bank statement, address and identification proofs, etc. ready. Save the PDFs and images on devices like smartphones, computers, and tablets before applying. Get them ready in advance so that you can upload them as and when required. Ensure a break-free process of the online personal loan application.
4. Only provide correct information
Providing authentic and correct information decreases your application’s chances of getting rejected and ensures that you get the best offers.
Lenders go to multiple extents to verify each piece of your information before approving your loan application. Your application will get rejected even if a single of your data is fake or misleading.
It is in the best interest of both you and the lender that you provide correct and authentic information online.
5. Smartly choose your instant loan amount
While you have an option to choose an instant loan amount between Rs. 5000 and Rs. 5 lakh if you are eligible, you must only take as much loan as you require.
Do not take excess loan burden that can disturb your budget and reject your future loan applications by negatively impacting your credit score. So, fix what loan amount you want before thinking about how to get an instant loan online.
6. Check your eligibility and probable EMI beforehand
Use personal loan calculators available online to know about the maximum loan amount you are eligible for, your EMIs, and the involved charges. This exercise would make it clear what your EMI would be. This will help you plan your budget and take the loan amount you can repay easily, say an instant loan: 1 lakh.
Conclusion
Also, be sure that you are offered the minimum interest rate out of all the lenders in the market. Again, be sure of your need for an instant personal loan. Instant loans can be beneficial in times of need but can be a burden if availed for unjustified reasons.