No amount of planning can control the unpredictability of life. Irrespective of how careful you are, situations like medical emergencies, natural calamities and unforeseen expenses can occur at any time and directly impact your savings and overall financial health. But there is a stress-free way of managing urgent financial needs with Instant Personal Loans. Let’s find out what is instant loan and how it can aid you.
What is Instant Loan?
Instant loans are collateral-free loans that are processed and disbursed in a quick time frame. As compared to other loans, their application process is also relatively easy. They can rescue you from tough financial challenges, and because of the convenience they provide, their popularity has also increased. Let’s look at some ways you can use your Instant Loan.
Where to Use Instant Loan?
Weddings
It is common to go over budget while hosting wedding celebrations. Instant loans help cover decorations, catering and other expenses to host your dream wedding.
Travel
Travel is another popular use of instant loans. An emergency trip or an impromptu vacation to your favourite destination is made easy with instant loans without scooping an enormous amount from your savings.
Home Renovation
Home repairs or renovations are long-term expenses but can require a considerable investment. Instant loans help you cover the costs and create the house of your dreams.
Medical Bills
Medical emergencies are bound to occur anytime, and instant loans can help a great deal in paying fees not covered by medical insurance.
These are just a few examples of where to use an instant loan. However, there are no restrictions on how you choose to spend your Instant Loan amount. Now that you know what is instant loan and where to use it, let’s look at some things you should check before applying.
Things To Check Before Applying for An Instant Loan
Credit Score
Those who know what is instant loan are aware that credit score is crucial when it comes to Instant Loans. An excellent credit score increases your reliability as a borrower and makes you eligible to borrow a higher amount. Although it is possible to get an instant loan with a low CIBIL score, it is still advisable to maintain a good credit score.
Income Stability
After availing of an instant loan, the amount received has to be paid back to the lender through EMI (Equated Monthly Instalments). For hassle-free approval, you must ensure the lender that you have a stable monthly cash flow and show proof of your income.
Eligibility Criteria
Once you understand what is instant loan, the next important thing is the eligibility criteria. Before you apply for an instant loan, you must check your eligibility and make your financial decisions accordingly. Most lenders provide an online eligibility calculator that helps calculate the loan amount you can manage to pay while keeping your monthly income and liabilities in consideration.
Interest Rates & Fees of Different Vendors
Before finalising a lender, compare different lenders’ interest rates and fees. Read their terms and conditions before applying and check their foreclosure fees, pre-payment fees, late payment fees and more. And most importantly, make sure you choose a trusted lender.
Documents Required
The documents required for an instant loan application differ for salaried applicants and self-employed borrowers. However, you must produce at least an identification, address, and income proof in both cases.
Loan Amount and Repayment Tenure
Choose your loan amount and repayment tenure very carefully. The nature of instant loans is such that they best suit your immediate needs. Since these are unsecured loans, they have higher interest rates than secured loan models. To avoid longer tenures and more interest, check the loan cost on an EMI calculator and see the EMIs associated with different loan amounts, interest rates and tenures before finalising your repayment tenure.
You are all set now! You know what is instant loan and what you must consider before applying for an instant loan. Make sure you research well before you choose your instant loan vendor.
