By Shubhi Gupta
All of us go through a bad phase in life when we are in need of instant money but are short of options. In such difficult times, we often borrow from friends/relatives or exhaust our savings to tide over the crisis. In such a scenario, an individual can avail of instant personal loans in India. These loans are unsecured in nature and are without any collateral deposit. Both the salaried individuals and self-employed personal are eligible to apply from personal loan apps. A personal loan can be taken for a variety of purposes, including:
- House renovation
- Medical emergency
- Travel expenses
- Buying a gadget
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What are instant loan apps?
Instant personal loan apps are online digital financial platforms that provide immediate loans to the applicant for a variety of purposes. Digital apps are becoming popular because of significant benefits to the borrower. The benefits include:
- It cuts down the time required for loan approval.
- Digital apps cut down paperwork significantly.
- The loans are approved with minimal documentation.
- No need to provide documents physically, they can be simply uploaded.
- Easy user interface for the borrower.
- Regular EMI reminders to avoid defaults.
- Instant loan apps help in applying for loans and managing it using just a smartphone.
Most financial institutions follow along with and cumbersome loan approval method that takes extra time for loan approval, this, however, is absent in instant loan apps. Some of the best instant loan apps in India are:
- Money Tap
What are the benefits of instant personal loans?
Personal loans are a simple way to make you enjoy your life to the fullest. There are several benefits of personal loans, such as:
Collateral free loans
Personal loans are unsecured form of credit. It doesn’t require a borrower to pledge anything as security to the lender.
There are digital financial platforms that offer loans with minimal documentation to eligible individuals. Unlike banks or NBFCs, online financial platforms follow relaxed policies in offering loans.
Line of credit
The line of credit facility is also available with instant personal loans in India. It means a borrower will only have to pay interest on the money utilized and not the entire money sanctioned by the lender.
As the verification of the documents is done digitally, the time taken is less. Once the verification of the borrower’s documentation is complete, the loan is approved, and the funds are transferred to the account.
Multipurpose in nature
A personal loan can be utilized for multiple purposes ranging from marriages to house renovation or buying new furniture for the house.
A borrower can select affordable EMIs according to convenience. Other features like auto-debit and constant reminders help a borrower to not miss out on timely payments.
Easy collection of documents
The documents are collected online or through the doorstep collection method for the comfort of the borrowers.
Zero credit history
Individuals with no credit history can also avail of personal loans if they meet the lenders’ eligibility criteria.
Interest rates charged by Personal loan apps
|Interest Rate||1.4 to 2.3% per month|
|Processing Fees||Up- to 2.5% of the entire Loan Amount|
|Late Payment Charges||Rs 500 + GST|
|Pre Payment charges||4% charge on the outstanding principal amount during the foreclosure|
Eligibility for Personal loans
Personal loans are offered by financial institutions, including Banks(private/public), NBFCs, and online financial platforms. Although the eligibility criteria vary across different platforms, yet the minimum criteria followed for salaried/self-employed individuals include:
|Age limit||Minimum 21 years – Maximum 60 years|
|Employment||Both Salaried and self-employed (with regular income source)|
|Minimum income||Rs. 12000 (for salaried individuals) or Rs.15000 (for self-employed)|
|Loan amount||From Rs. 5000 to Rs. 5 Lakhs (depends upon the necessity)|
What are the documents required to avail of personal loans?
The documents required to avail of personal loans in India are:
- Photo identity and age proof
- Residence proof – Aadhar card, Ration card, (Utility bills like water, electricity, telephone) passport, driving license
- Bank statements for the last three months
- Income tax returns for the last three months
- Filled form with photos
How to apply for personal loans?
In three simple steps, an individual can apply for personal loans in India, these are:
- Step 1 – Filling the eligibility form
- Step 2 – Select the loan amount and tenure and upload the documents.
- Step 3 – Funds are released.
With instant personal loan apps, individuals can lead their life without worry. The convenient, paperless, quick disbursal, and affordable rates make it easy for a borrower to repay the loan amount without trouble.
(Disclaimer: The article is sponsored, and hence promotes some commercial links.)