At some point or other in life, due to different reasons and situations, everyone faces a financial emergency, which you might not be able to deal with your savings. However, with the drastic evolution of the banking sector, taking financial assistance has become extremely convenient for the customers.
Gone are the days when taking a loan was a big task as you need to visit banks with lots of documents to get the loan approval. With the concept of immediate cash loans coming to India, you actually have a savior when you need money due to any reason. These loans can be easily availed online within minutes by visiting the banks’ websites or apps.
What is an Immediate Cash Loan?
An immediate cash loan is a short-term unsecured personal loan that gives you an access to funds on the very same day of your loan application. Also known as a same-day personal loan, this loan takes lesser time as compared to normal personal loans and fulfills your requirement of instant cash. The approval process of immediate cash loan in India does not require a credit check and even an individual with a bad credit history gets cash instantly.
Features of Immediate Cash Loans
- Funds are credited on the same day: An immediate cash loan became popular and is preferred by a lot of people only because an individual gets access to cash the very same day of loan application. Unlike traditional loan process, there are no formalities or long paperwork involved in this type of loan.
- Hassle- free online application: An emergency has come up and you don’t have the time to go to the bank to apply for a loan? Don’t worry! This loan can be applied online from the convenience of your office, home or any other place. The quick loan process can be completed within minutes and the fund is credited within a few hours.
- No need to disclose the purpose of loan: You need an immediate cash loan? Just apply for it without disclosing the purpose. This multi- purpose loan can be used in case of any financial glitch be it a medical emergency, home renovation, vacation, etc.
- No collateral needed: This loan is repaid when an individual gets the salary credited to his account and hence, no collateral is needed as security. This is why an immediate cash loan comes with a high interest rate.
Eligibility Criteria for Immediate Cash Loans
- You should be a resident of India.
- You may be at least 21 years old and not above 55 years.
- You may have at least minimum monthly income flow of Rs. 20,000.
Documents Required for Immediate Cash Loans
- PAN Card
- Aadhaar Card
- Address Proof
- Bank statement for last six months
- Salary slips of last six months
Pros of Immediate Cash Loans
- Minimum documentation: The whole process of an immediate cash loan takes place online and all you need to do is to upload the necessary documents on the bank’s website or app. You don’t need to visit bank and can easily apply online.
- EMI calculation: When you apply for a loan offline, the lender might use some algorithms while calculating the EMI amount. But, when you apply online, you can easily calculate the EMI using an online EMI calculator . All you need to do is fill in some details like your loan amount and income and you will get your loan quote, which is accurate and transparent.
- No long- term commitment: When you take a personal loan, you usually end up repaying it for months or even years. However, immediate cash loans do not need any installments as they are paid immediately after the next salary is credited to your account.
- Improves your credit score: Repaying an immediate cash loan is easy and when you pay it successfully, you increase the credit score, which makes it easier for you to apply for a loan in future.
- Non-existing customers can also apply: Even if you are not an existing customer with the financial institution, you can still apply for an immediate cash loan and you will instantly get it.
Cons of Immediate Cash Loans
- Non-certified Lenders: When there is an emergency and you need cash urgently, you might apply to many banks and NBFCs. But, you should be aware of non- certified lenders as you might fall in a trap.
- Higher rate of interest: An immediate loan is sanctioned instantly and hence might come with a very high rate of interest, which is almost double as compared to a regular loan. Therefore, these loans are expensive.
- Higher EMIs: An immediate loan is repaid in maximum 3 months and comes with higher EMIs, which needs to be paid in limited time. If you are opting for this kind of loan, be prepared to deal with such EMIs.
Things to Consider While Availing Immediate Cash Loans
- Be careful while borrowing: Since, these loans are easy to get, frequent borrowing should be avoided. Borrowing funds should be considered as the last option. Also, if you keep applying for an immediate cash loan one after the other, it might impact your credit score negatively.
- Read terms and conditions carefully: The lender might charge you a processing fee or you might need to pay some penalty if you prepay the loan amount or other charges may also apply. To avoid any shocks in future, it is important to read all the terms and conditions properly.
- Explore more options: Easy availability of an immediate cash loan might not make you look for other options, which can be cheaper. Let’s say, if you compare, there can be other loans available with lower interest rates. It is important to explore various options and go for a loan that is more convenient and easy to repay.
Should you apply for an immediate cash loan?
Well, that you need to ask yourself. An immediate cash loan is definitely the quickest and easiest way to raise funds when a financial emergency comes your way and also saves you from the embarrassment of asking money from your relatives. The only advice is to be careful while borrowing so that you don’t feel burdened while repaying it and read all the terms and conditions properly to avoid any surprises in future.