What is Instant Personal Loan | Benefits & Features

Do you have inadequate or no funds for purchasing an automobile, buying a dream house, and financing your child's education? Whatever the need for funds, an instant personal loan can support you in sorting out personal issues associated with funds. Anyone can avail of these unsecured loans through an NBFC (Non-banking financial company) or bank. It helps you to meet your varied personal needs.

You can get an instant personal loan for the below-mentioned incidents:

Home Renovation
Travel expenses
Debt consolidation
Buying electronic gadgets
Wedding expenses
Medical emergency
One-time purchase

Key Features of Instant Personal Loans:

Various attributes of an instant personal loan make it quite popular among people. These are mentioned below:

Flexibility- This type of loan can fulfill any person's requirements. You can use it for travel expenses, weddings, education, jewelry, medical expenses, and electronic items. So, it is an easy way to meet your financial needs during a cash crunch.
Fewer documents- The personal loan needs limited documents for approval. On approval, you can upload documents to verify, which will be transferred to the bank accounts in a few minutes.
Quick disbursal- It has become quite easy to get an instant disbursal personal loan at the time of need. You will get the loan in 24-72 hours and are eligible for instant approval to get a loan from your bank.
Less paperwork-Now, less paperwork is required, and you will get an instant approval for the personal loan. In case of any doubts, you can contact the customer care department of your bank or financial institution.
Easy repayment option- There are multiple loan repayment options: EMIs, post-dated cheques, installments, and online payment. You can select the option at your convenience.
No collateral- There is no need to deposit collateral if you get approval on an instant personal loan online. You are just required to meet the initial criteria of the financial institution.
Lucrative interest rates- Now, you can get personal loans at pocket-friendly interest rates. Hence, your EMI remains fixed for the entire duration. There is no need to get worried about fluctuating interest rates.
Tax benefits- You will also get the added tax rebate on the loan amount.
Online EMI calculator- You can calculate EMI and payback duration and amount with the help of a calculator. It makes calculating EMI quite easy without any errors.

Where to look for an Instant Personal Loan?

You can get an instant personal loan from your bank, online lender, or any financial institution that offers lending money. Also, you must fulfill their eligibility criteria and calculate EMI, interest rate, credit score, and repayment capability.

How does availing of a Instant Personal Loan work?

Getting a personal loan has become quite easy and fast. You can get an instant personal loan without any delay. The loan can be applied online, and you get instant money in your account. In the past, the loan application process was cumbersome as you had to visit the branch and then fill out the form with the submission of documents. But now, you can apply online and upload documents with various reliable loan applications.

Also, loan eligibility, credit score, and creditworthiness can be checked online within minutes. Also, the loan processing time has been reduced to a great extent. So, you can easily get a personal loan online in just a few clicks. Hence, you must know certain things before applying for a personal loan.

Essential Factors to Consider Before Applying for a Instant Personal Loan

Until now, you must have understood the importance of personal loans and how quickly it is to get into your bank account. However, there are a few things that you must consider before applying for an instant personal loan without documents.

Analyze the exact amount required to borrow and the total repayment amount- Before applying for a loan, it is a must to understand the fund requirement and your capability to pay it back. The affordability factor can be analyzed from debt to income ratio, and it must be at most 30 percent as you require funds for other needs as well. Hence, keep a fine balance between your income and debt amount.
Evaluate loan eligibility- This includes employment status, age, and financial status for repaying the loan amount. Also, the lenders check your credit score, the score of more than 750 signifies that you are eligible for the loan. Hence, before applying for an instant personal loan salaried, you must calculate your credit score and income as it will reduce the chances of loan rejection.
Check proposal- Once you have decided on the loan amount, repayment capacity, and loan eligibility, you can now check the offers and benefits offered. It will help to compare different lenders' interest rates, repayment options, and benefits.
Go through terms and conditions- The instant personal loan online can save time and energy in emergencies. However, you must read the terms and conditions carefully and evaluate interest rates, prepayment, late fees, loan cancellation charges, and EMI bounce fees.
Smart planning of repayment- Getting a loan is quite easy, but you must also look out for repayment. While calculating EMI online, select shorter repayment time as long tenure decreases EMI cost but increases net repayment amount.

Pros and Cons of taking a Instant Personal Loan

When you have decided to take the loan and checked your eligibility criteria and repayment option, consider the pros and cons of an instant personal loan online.

Pros of Personal Loan:

Quick and hassle-free- You can get an instant loan from digital lenders, NBFCs, and banks. So, the documents can be uploaded online, and you will get the loan in the minimum turnaround time. You will get quick approval for personal loans without any delay.
No collateral- The personal loan is unsecured, so no collateral is required. Hence, you don't have to worry about losing an asset in case of a crisis.
Flexibility in using funds- You can use the funds for any purpose, and there is no need to disclose the purpose to the lender.
Flexible tenure- You can select the repayment tenure at your convenience. It can be extended up to 5 years. Short duration means high EMIs but low-interest rates, while long tenure is a small EMI with high-interest rates.

Cons of Personal Loan:

High-interest rates- As the personal loan is unsecured, the interest rate is higher than other secured loans. Lenders take high risks by giving instant personal loans without any security or collateral. It entirely depends on income, loan amount, credit score, and EMIs. Also, you must pay the processing fees to avail of the loan instantly.
Debt trap- Getting an instant personal loan without income proof is quite easy, but you can get into trouble by applying for a large amount or too many times. So, always take the loan by analyzing all the factors carefully.

Conclusion on Instant Personal Loan

An instant personal loan is a good option if you need funds for an emergency or have a cash crunch. The interest rates are high, so you must plan your finances carefully before applying for a personal loan. You can also calculate eligibility, EMIs, repayment amount, and duration with an EMI calculator online. Almost all lenders provide quick approval for personal loans. So, you can get the loan amount in the next 72-24 hours in your bank. Also, the paperwork is quite less, and no collateral is needed.

FAQs on Instant Personal Loan

What is the maximum loan that I can get?

You can get approximately 20 lacs of personal loan if you are a salaried person and around 30 lacs if you are a self-employed businessman. Also, you will get an instant personal loan online without any delay. However, the loan amount depends on different money lenders that need to be checked.

How can I get an Instant Personal Loan within minutes?

You can contact a financial institution that can lend money. Check eligibility, EMI, and interest rate, evaluate repayment amount, and apply for the loan online. Once your application gets approved, you will get the instant disbursal of funds in the bank.

Can personal loans be used for anything?

Yes, personal loans can be used for any purpose. You can use an instant personal loan for student fees, renovating a house, buying an automobile, or incurring wedding, travel, or medical expenses.

Can I get an Instant Personal Loan without document proof?

If you require a loan, contact your bank, online lending facilities, and NBFCs, as they only require the documents if they don't have them. However, every financial institution needs less paperwork to give instant personal loans online.

How long does it take to get approved for a loan?

Generally, getting approval on personal loans takes five to seven working days. The lenders offer same-day funds disbursal into your bank account. You are just required to upload the documents online after getting approval from the concerned authority.

Is the Instant Personal Loan interest rate fixed or floating?

Financial institutions offer either fixed or floating interest rates on personal loans. However, the rate remains fixed throughout the loan period.