Instant Loans Are As Good As they Sound- Here's Why

If you’re in a financial pinch, an instant loan is the ultimate solution! These are cash advances, which are loaded with various benefits and can serve your emergency needs. There are many online apps, banks, and NBFCs which provide these unsecured loans with minimal and convenient documentation and procedures.

Some important things you must know about Instant Loans

• The application of Instant loans is quite simple, wherein you can either fill out an online application or in person. You would need to fill in your personal information, your income and debts, and your bank account information. The approval is the least time-consuming.
• Instant loans may not be instant as they usually take time from a few hours to a few days to have the loan funds transferred into your bank account if approved.
• These are small loans, and you may pay a very high interest rate depending on factors like income, job stability, other debts, and credit score. You can’t think of buying a house using these instant loans but can only think of settling minor and emergency expenses.
• These are unsecured personal loans wherein no collateral is required. Customizable loan tenures, with flexible loan amounts and competitive interest rates (depending on other factors), are its keys features.
• You may have a short loan term, and there are chances that some lenders may not lend in your situation. However, there may be some who may approve an instant loan even with bad credit.

Different Types of Instant Loans

Some of the types of instant loans are as follows:

1. Personal Loans are an ideal choice to deal with month-end financial crises. You can apply for these loans online credit line to avail of this loan and upload your necessary documents to get instant funds.
2. Top-Up Loans are extra funds over and above existing loans. It is an easy process as you have to complete only a few formalities since your details are already with the lender.
3. Credit Card loans can be availed depending on your repayment history and credit card limit. It requires minimum processing, and the funds get disbursed quickly.
4. Loans Against Savings and Insurance, which depends on the maturity value of your policy or savings. You may be eligible for 90% of your saving value as a loan amount if you have a clean repayment record.

Benefits of Instant Loans

1. It is a time-saving process - All you have to do is to fill up the application online and get instant approval and funding.
2. Flexibility – There is no restriction on its utility, and you don’t have to give explanations to anyone.
3. Less Paperwork Secured and Transparent Process – Your private information remains confidential and safeguarded, and the terms and conditions are self-explicable.
4. Low-Interest Rates – It becomes possible to repay the loan within a short period.

Factors to Consider and Compare before applying for an Instant Loan

It is critical to compare the instant loans offered by different lenders based on the following factors:

1. A onetime Processing Fee which is charged by all the lenders
2. The rate of interest can affect the total cost of the loan.
3. Default Penalty charged by the lender if you do not repay the EMIs as per schedule.
4. Repayment Flexibility can allow you to make pre-payments or part-payments towards your loan amount.

Eligibility Criteria for Instant Loans

You would need to meet a few requirements to apply for an instant personal loan like:

1. A decent Credit Score of over 750 to get an affordable interest rate on the loan
2. The age limits and the kind of associated employability at that age are important factors that will mark your eligibility.
3. Your income and occupation are crucial parameters as Instant loans are offered to both salaried employees and self-employed individuals.

How Instant Loans Can Build Your Credit Score

Financial planning is of paramount importance, and you can maintain it well if you have a good credit score. An instant loan can lead to a healthy credit score, and here is how you can build it quickly and consistently! You can now use instant and personal loans to consolidate your existing debts and save yourself some money.

You just have to pay one EMI and have only one lender to deal with rather than having multiple loans. When you pay off your EMIs on time and within the deadline, it makes your credit score strong and credible. It has a positive impact on your credit score evaluation and calculation and is useful for your future needs of emergency loans.

Conclusion

Among the leading online personal and instant loan providing platforms in India, the credit line app is one of the most popular, which has flexible and minimal eligibility criteria. You can now apply for an instant loan through your smartphone, deal with emergencies at a fast speed and minimum documentation and start building your credit score right away!

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