In today’s world, we may come across instances of unexpected expenses. Opting for an instant personal loan is an easy way to tide over this crisis. This form of financial assistance does not involve any collateral but comes with high-interest rates and fees.
To know how to apply for instant loans, read on!
What are quick loans?
Quick loans is a form of credit that allows you to take a loan in a very short period of time with a minimum number of steps involved. Through this, the borrower can get instant money in their bank account at an interest rate that is competitive with the interest rates charged by other sources of loans.
Quick loans can be helpful in cases of urgent requirements of money such as student loans, making medical payments, some immediate purchases, and marriage-related costs.
However, people can also avail of these loans in cases when they require a one-time payment and wish to repay it back in EMIs such as in the case of going for a vacation, and buying a bike.
Reasons to take personal loan
At times you may have to purchase a laptop or have any exams coming up in your college that require an additional sizeable expense. Quick personal loans can help you with such expenses.
There might be moments when you have a medical emergency and you need urgent funds. Insurance policies may not cover all medical procedures. Some diseases and treatments that you might need are not covered by all insurance policies.
An instant personal loan for a medical emergency is one of the ideal solutions in such situations. You can utilize the loan money to pay for any medical expenditures or therapies you might need.
Traveling to new places may often refresh the soul and help to break up the monotony of daily activities. Making regular savings towards such holiday goals, where one can aspire to build a healthy amount to pay the trip expenses, is always a financially wise decision.
However, making advance reservations for such expenses, particularly flights and hotels, can help you save a significant amount of money, hence reducing your overall travel budget. To make such advance payments, one can take out an instant personal loan for travel and repay the loan with your savings at a later date.
Personal loans can be a great way of clearing high credit card debts since interest rates on personal loans are relatively lower, in the range of 3% to 30% when compared to credit card interest rates (12%-24%).
Thus, you may consider taking out a low-interest personal loan to pay off your credit card debt.
However, there are also risks involved. For instance, taking out a personal loan could lead to more debt. So, use it only if you have no other options, like opening a balance transfer credit card.
Personal loans might help you raise your credit score. However the important thing to note here is timely payment. Each time you successfully repay your debts, on time, you will see that your credit score will stabilize and improve over time.
Marriages are quite a big deal in India and people tend to splurge a lot on wedding festivities.
Marriage expenses can sometimes run beyond budget due to a desire to celebrate in the most extravagant way possible. Instead of being financially stressed because of this, one can take out a personal loan to cover wedding costs and then repay the loan in monthly payments. However, being financially prudent at the time of any celebration is a wise habit. Taking a loan to celebrate may appear easy, but making timely repayment, particularly when your family expands may be difficult.
Here are some crucial things to know about instant loans before applying for this type of financial assistance:
A high credit score (preferably more than 750) will help borrowers to get fast approval. Individuals who maintain a high credit score will also get low-interest rates and favorable repayment terms.
Many institutions charge a processing fee while sanctioning a loan. Borrowers can check the charges before applying and take a decision accordingly.
It is essential to compare the interest rates offered by multiple lenders. It will help borrowers make a more efficient decision that is in line with their repayment capacity.
Many platforms offer easy EMI repayments for instant loans – these allow the borrower to pay back the money in small amounts
Unlike traditional bank loans, quick loans involve minimum or no paper requirements and can be availed from the comfort of your home.
Some platforms also offer free early closure of the loan i.e. you can repay the amount earlier than the time period you had initially selected, allowing you to not pay any further interest amounts.
Before applying for an Instant Loan, take a look at the list of documents to keep ready in hand. This set of documents may be required to be furnished and uploaded during the process of the Instant Loan application-
To get an instant loan, one needs to apply by following the steps given below:
Step 1: Visit the website or mobile app of the lender.
Step 2: Go to the instant loans section.
Step 3: If you are an existing customer, fill out the application form. New users will have to complete the registration process and then fill out the application form.
Step 4: Fill in all the details and complete mobile or e-mail OTP verification.
Step 5: Fill in the income details and KYC data.
Step 6: Select the loan amount.
Step 7: Upload the relevant documents.
Step 8: Submit the application form.
Calculate your Personal Loan EMI here with Groww Personal Loan EMI Calculator
An instant personal loan can be beneficial when someone is facing a cash crunch. Individuals opting for instant loans should compare the terms and conditions as well as facilities offered by various lenders before initiating the application procedure.