Applying for a personal loan can sometimes feel like a challenging task. You need to gather all your financial documents, fill out a lengthy application, and then wait days or even weeks to hear back from the lender. And if you are unapproved, you will have to start the whole process over again at another bank. And that’s where instant personal loans come in handy.
An instant personal loan is just what it sounds like: a loan approved instantly and quick disbursal. Plus, you can use the fund for any purpose you want. Here are some perks you can enjoy by opting for an instant personal loan.
Easy to apply and quick disbursal
An instant personal loan is a type of loan that can be approved and disbursed in a very short period, usually within 24 hours. Moreover, applying for a loan online usually requires minimum documentation. In most cases, you just need to fill out an easy application form, upload KYC documents and show proof of income. Once your details are verified, you get the funds directly into your account within a working day.
No collateral or security required
Instant personal loans are basically unsecured loans that usually don’t require collateral or assets to qualify. That’s different from a secured loan, where the lender can seize your assets if you default on the loan. For added convenience, most banks, like IDFC FIRST Bank, offer a mobile banking app to allow their users to apply for an instant personal loan convenient from the app itself.
No end-use restrictions
Unlike a home loan or any other loan, there are no restrictions on how you can use the funds from a personal loan. This can be helpful if you need money for a large purchase or unexpected expense and don’t have the time to save up.
Lenient eligibility criteria
Another reason to opt for an instant personal loan is that the eligibility criteria are relatively lenient when compared to other types of loans. For instance, reputed banks like IDFC FIRST Bank only require individuals to be at least 21 years old, have a regular income source, and maintain a good credit score to be eligible for an instant personal loan.
Flexible loan repayment tenure
Personal loans also offer flexible repayment terms, ranging from 12 to 60 months. That means you can choose a repayment schedule that fits your budget and financial needs. And if you need more time to repay the loan, some lenders may be willing to extend the repayment period based on your existing relationship with the bank, credit score, and repayment history.
Helpful for emergency issues
Unfortunately, financial emergencies can strike at any time. Whether it’s a surprise medical bill or a car repair, these unexpected expenses can leave anyone feeling stressed. Here, an instant personal loan can provide quick and easy access to funds, allowing you to take care of your emergency without breaking the bank. And because they can be approved instantly, you won’t have to wait days or even weeks to get the money you need.
So, the next time you need some immediate funds, remember the benefits of opting for an instant personal loan. And ensure comparing rates and terms among different lenders to find the right type of loan with attractive interest rates and lucrative offers.