In present times from a steaming cup of coffee to a cheesy pizza, everything is available on the move. Banking products are not far behind in today’s world of instant gratification. Banks are not only offering digital money platforms and online payment methods but paperless loans as well. Applying for loans online is not a new concept in India. It is easy to get pre-approved loans through mails and you can easily place a loan application through paisabazaar.com. Online personal loans will save you from the hassle of paying multiple visits to a bank’s branch. You will no longer have to get in touch with bank officials to know whether you are eligible for the loan or not. [Read: Eligibility Criteria of Personal Loan]
A cut above the rest
In the competitive retail banking landscape, lenders adopt different measures to differentiate their products. Lenders offer new banking services to woo customers. Most banks feel that they need to cater to a customer’s demand for speedy services as the turnaround time is a critical component of overall customer experience. Technology and credit information tracking has helped banks to shorten their procedures and cut down on the time required to provide services and products. Loans are being approved in a short duration of time by using data which is readily available. The risk also gets reduced in such cases because the loan approval is based on pre-verified information.
The 10-second loan
Banks recently have come up with quick personal loans which are offered to existing bank account holders. These loans can be applied for in less than 10 seconds. HDFC’s 10 second personal loan can be quoted as one of the examples. Banks claim that they will not only approve the loan instantly, but the loan will be disbursed to the applicant’s account without any delay. Although this loan is just a click away, it is advisable to have a repayment plan ready before applying for it. Usually these loans are offered based on the personal financial profile of the customer and their financial credentials such as repayment history and credit score. Chances of approval of the loan are higher if you have a good credit score.
A streamlined online process
As the entire process is online, a small mismatch in the information may delay the processing of loan and also its disbursal. The money after deduction of the processing fees and other charges will get credited to the customer’s account immediately if the banks find that your information is accurate. Earlier, a bank would take the form from the customer, verify the details and offer the loan after that. This took several days before the loan could be disbursed. In case of quick cash loans, the process is much more streamlined and faster. Through Aadhar linking, banks can easily access the KYC documents and therefore time required for loan processing reduces significantly. These loans are usually available 24X7 through net banking.
This instant cash loan is processed online and is majorly paperless i.e. customers need to login to their bank account via mobile banking or through net banking to apply for this loan. This loan is especially useful in case of sudden requirements such as medical emergencies; for the customers will no longer have to wait too long for disbursement of funds. The simple, speedy banking solution offered on a single mouse click can easily be of help for your instant cash requirements.
Drawbacks of the instant loan
All the transactions of these fast cash loans are linked to your own savings account. This serves both as an advantage and a drawback. Instant loans offered on your account may tempt you take one even if you don’t need one thus leading you towards a debt trap. Remember, one wrong step and you might go sliding into the morass of oversized debts. Take your decisions wisely and ensure that you ascertain the service charges or the hidden costs before you avail one of these instant loans.
How you can benefit
Nevertheless, the advantages of the instant loan are many. The most important among them is quick disbursal, which is not the case with other loan types. Also, it is flexible and hence you can avail the loan amount and use it for any purpose you like without restrictions. However, it is important to ensure that you understand all the terms and conditions associated with this type of loan before you sign up for one.
Also Read: Quick Guide To Pre-Approved Personal Loan