Easy & simple guide to instant personal loans in India
According to a report, there has been a rise in personal loan applications, with 25% of borrowers aiming to secure their business liquidity, 18% to manage medical expenses, and 17% investing in vehicles.
This immense popularity amongst Indians for a personal loan can be attributed to the substantial amount and easy accessibility.
Lately, economic unrest has increased the living cost of individuals. In this situation, individuals are turning to instant personal loans for assistance during medical emergencies.
Potential borrowers must understand the loan variant in detail to double up their benefits.
What are instant personal loans?
It is a convenient credit facility disbursed by financial institutions within 24 hours of application. Moreover, the easy eligibility criteria and simple documentation make this quick personal loan a perfect monetary source for emergencies. The fast approval and digitalised procedure also remove the tiresome method of visiting lending institutions.
Hence, in a situation like a medical emergency, availing this credit form can work as a source of instant finance for all kinds of crises. To gain the benefits, it is important to understand the application process first.
How to make an application for an instant personal loan?
The application process for a digital personal loan is quite convenient and a matter of minutes. The steps for the same are –
· Visit the chosen lending institution’s official portal and select the “instant personal loan” tab
· Fill in the application form with personal and professional details
· Select the loan amount and tenor. It is suggested to proceed with the step after a thorough assessment of repayment capability.
· The applicant receives a call from a representative of the financial institution.
· After understanding the loan details, individuals need to submit scanned copies of the required documents.
· The loan amount is disbursed to a borrower’s account within 24 hours after successful scrutiny.
However, there are times when the loan application gets rejected due to certain factors. Hence, understanding these points becomes vital.
Factors affecting instant personal loan approval
· Income stability
Income is one of the most crucial factors that determine personal loan approval. Typically, the monthly income substantiates an individual’s ability to repay the loan and interest over a stipulated tenor. In this regard, disclosing additional income source can also improve eligibility, thereby increasing the chances of loan approval.
· Credit score
Aside from income, the credit score is another essential factor that can increase one’s chances of getting a personal loan. Since it is an unsecured loan, a borrower needn’t submit any collateral, making it riskier from a lender’s end. However, a 750+ CIBIL score and remarkable repayment history reflects a borrower’s creditworthiness and helps obtain approval faster.
An applicant’s age also plays a significant role in instant approval. Typically, lenders prefer applicant’s in the initial years of their career with a stable income source. It ensures they can repay timely as compared to those nearing retirement.
Apart from these factors, a borrower should be mindful of personal loan interest rates. These rates can vary according to a lender’s policy and also a borrower’s eligibility. It’s also imperative to compare lending institutions offering suitable benefits.
For instance, reputed NBFCs like Bajaj Finserv extend instant personal loans against an affordable interest rate. They also extend pre-approved offers to simplify and expedite the loan application process. Such offers are available on financial products like personal loans, business loans, etc. Check your pre-approved offers by entering your name and contact number.
An instant personal loan can be critical for individuals dealing with medical emergencies or urgent monetary needs. In this matter, finding out the factors affecting the personal loan interest rate and documentation can streamline the entire process.