We all have faced times where we immediately require a certain amount of money due to an unexpected situation like, medical emergency, impromptu trip, or even a product that has been on your wishlist and is now on discount. Under such circumstances, we wish that we would have instant cash in our hands to deal with this situation.
Banks also call it pre-approved loans, where a certain amount of loan at a pre-decided fixed interest rate is available to the customer and can be credited within 15 minutes. Customers can apply for such loans via various financial apps.
Fast online loans can help any individual during times of financial crisis. People do not have to liquidate their assets for the requirement of cash, instant loans can fulfil such requirements. It is very convenient for customers to apply for such loans.
Few advantages of Instant loans-
- Usually when customers avail of instant loans, they are offered flexible tenure and hence can choose to repay the loan as per their convenience.
- As customers require loans urgently, the sanctioned loan amount is disbursed within minutes.
- The processing time is significantly less as compared to any regular loan.
- An instant or pre-approved loan is an unsecured loan. Hence, customers do not need to submit any collateral.
- Individuals who borrow money and make timely payments improve their credit score and this helps them to get more loan amounts at less interest rates in the future.
Usually, individuals who have a credit score above 750 are eligible for instant loans. Immediate loans are offered to both salaried and self-employed individuals.
As there has been a growing demand for these loans, it has led to the emergence of different types of instant loans-
-Short Term Personal Loans (STPL) are loans that offer amounts as low as 1000 Rs. It can be an ideal choice to deal with “month-end” financial crises.
-Top-up loans are loans offered over and above an existing loan. Since the provider already has details about the individual it is very easy and the process is quick to get a top-up loan
-Loans against credit cards are loans that may be offered to individuals by the credit card provider depending on your repayment history and credit card limit.
-Loans against fixed deposits is yet another type of loan. The loan amount depends on factors like the credit history of the individual. A good credit record can help the individual get up to 90% of the FD amount.
-Personal loans are the most common type that is available to the masses. Many banks, NBFCs, and digital lenders offer loans from Rs. 30,000 to Rs. 40 lakh, the amount sanctioned is based on various eligibility criteria. The interest rate of such loans is generally higher than the conventional secured loans. The tenure of the loan is flexible and payment can be made at the convenience of the borrower.