Nowadays, an instant personal loan is so popular that most of the loan seekers tilt towards it. Undoubtedly, instant personal loan aims to lessen the borrower’s liabilities and save an enormous time of the borrowers and lenders alike. A tremendous transformation is going in the financial market with a rising number of personal loan lenders turning towards the technology. Personal loan processes have now become easier and paperless. Most of the banks and financial institutions have propelled their functioning with the instant personal loan. This drastically cuts down the loan approval process turnaround time.
Features of Instant Personal Loan
Here is why an instant personal loan is gaining popularity among the loan seekers:
⮚ Online Loan Process
The whole processing of the instant loan is done online. This facilitates a borrower to apply online for an instant personal loan, upload the required documents and e-sign the loan agreement with the comfort of home. A borrower can apply for an instant personal loan at any time from any place. Some lenders offer discounts and other benefits like low personal loan interest rate, etc. on the online loan process.
⮚ Multipurpose Loan
The instant personal loan amount can be used for any reason as per the borrower’s wish. Freedom of loan amount usage is one of the best advantages of an instant personal loan.
⮚ Unsecured Loan
Instant personal loans are collateral-free loans. This type of credit can be availed without any security or guarantor. Instant personal loan keeps the borrower free from the risk of losing any asset in case of default of the loan amount.
⮚ Flexible Repayment Term
The flexible repayment tenure is offered to the borrower in an instant personal loan. A borrower can choose the convenient repayment tenure among the offered term.
⮚ Short Term Loan
Unlike other financial products, an instant personal loan is a short term loan. This offers borrowers an option of repayment of the loan within a year. Hence, there is no need for the borrower to carry the debt burden for a longer period.
⮚ Quick Loan Disbursal
Instant personal loan justifies its name with the quick disbursement of the loan amount. This makes it the best financial tool to fight emergencies. An instant loan is disbursed in a short period of applying for it.
The instant loan can be very convenient, but in this competitive atmosphere through awareness of the lender is a mandatory prerequisite. Presently, a borrower can avail a credit paperless and pre-approved. However, lender offers for attracting business should not make a borrower to obtain a loan which is not required.
Here is a quick look at the things a borrower should be considering prior opting for an instant personal loan.
❖ Look beyond the interest rate
In addition to the rate of interest, there are other costs as well which a borrower has to bear. Some instant personal loans may charge a penalty for the prepayment of the loan amount. As if a borrower prepays the loan a sizeable interest cost can be saved. Traditional personal loan interest rates are typically lower than an instant personal loan. A borrower should ensure the clarity of the processing fee, late payment charge, and other cost structures. Every lender’s processing fee varies based on the many factors.
❖ Keep an eye on the declining borrowing limit
Being unsecured, an instant personal loan may reduce the borrowing ability of a borrower until the time it is settled.
❖ Ensure the security of the information
A borrower should be ensuring that the digital footprint is imperative. Just in case you are not comfortable to disclose the personal details to these apps, then the website can be a better option to availing an instant personal loan.
How to apply for Instant Personal Loan?
Instant Personal loan is a completely online process ranging from deciding the loan amount to finding a suitable lender. A borrower can simply visit the bank’s website, log in either via net banking facility or the bank’s mobile app, fill up the details in the online application form, upload the self-attested soft copies of the required documents and finally submit the loan application. This is the generic process involved by most of the lenders. The whole process can finish off in a short period. Based on the eligibility and the applied loan amount, the lender swiftly adjudicates the loan approval and transfer the loan amount directly in the borrower’s bank account.
There are one more term comes in instant personal loan i.e. pre-approved; it works only for that borrower’s who has an existing relationship with the lender or bank. Either in the form of a savings accounts holder or a borrower. The bank, therefore, already has the borrower’s details of the salary and previous credit records which makes the whole process much faster.
The list of required documents varies based on the lender. Here are the basic one required documents for an instant personal loan. The three main required documents are- Identity proof, proof of address and income proof.
❖ Identity Proof: The documents that are valid for identity proof are- PAN card, Aadhar Card, passport, driver’s license, etc.
❖ Proof of Residence: A borrower can provide utility bills, rental agreement, Adhaar cards, etc.
❖ Income Proof: A borrower can provide the last three months’ salary slip or the bank statement as an income proof document.
An instant personal loan is a great financial instrument to get immediate funding. The easy and seamless loan processing with instant disbursement of the loan amount makes it’s among the best tool to get financial support in a short time. Whether the funds are required for last minute travel plan or a medical emergency, an instant loan greatly fits for all the monetary needs. Lastly, remember that there are a few banks who, when talking about instant loans give only the instant personal loan approval instead of the whole loan. The vast majority of the instant personal loans are personal loans owing to the minimal documentation process for the approval.