Instant cash loans are basically short- term personal loans that can be availed within a time span of 24 hours. Also, instant cash loan is not only easily available online but the digital lenders offering it ensures easy processing and quick disbursal. The loan amount of such a loan starts from Rs. 1,000 and goes up to a few lakhs and can be repaid within flexible tenure that varies from lender to lender.
Instant Cash Loan- Features
- Loan amount: Whether your financial need is as big as getting married or as small as paying phone bills, an instant cash loan is available to fund all the financial emergencies by offering a loan amount within the range of Rs. 1,000 to Rs. 20 lakh
- Collateral- free loan: You can avail an instant cash loan without pledging any collateral against it. This type of loan is sanctioned on the basis of your eligibility
- Same day disbursal: Instant Cash Loan is apt to deal with emergency situations because once approved, the amount gets disbursed to your account within 24 hours
- Hassle- free online application: You don’t have to visit the lender’s branch to apply for an instant cash loan as it can be conveniently applied from the comfort of your home or office
- Flexible tenure: Unlike other types of loans, the tenure of instant cash is shorter and varies from a few days to months. However, you do get an option to choose the desired tenure as per your repayment ability
- No credit score required: Mostly all the digital lenders usually offer an instant cash loan even if you have no credit score or low credit score. This happens because most of the digital lenders follow their own model to check your credibility
Instant Cash Loan- Eligibility Criteria
- You should be a resident of India
- You should be a salaried employee
- Your minimum monthly income should be at least Rs. 15,000
- You should be at least 21 years old and your maximum age should be 55 years
Instant Cash Loan- Documents Required
- PAN Card
- Address Proof: Aadhaar Card, Voter ID Card, Utility Bills, Driving License etc.
- ID Proof: Aadhaar Card, Passport, Driving License, Voter ID Card, etc.
- Income Proof: Salary slips and bank account statements
Instant Cash Loan- Pros
- Time saving process: When you apply for an instant cash loan online, you save a lot of time and effort. From processing the loan application to uploading documents to amount disbursal, the whole process takes place online
- No long- term commitment: The tenure of an instant personal loan varies from a few days to months and therefore the amount is repaid within a short period of time
- Improves credit score: Yes, if you avail an instant personal loan and repay it on time, your credit score will come up by a few numbers
- 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
Instant Cash Loan- Cons
- Non-certified lenders: There can be various non- certified lenders in the market offering an instant cash loan. Therefore, it is important to check the authenticity of the lender before applying for funds
- Higher rate of interest: An immediate loan is an unsecured loan that is sanctioned instantly and hence might come with a very high rate of interest, which can be almost double as compared to a regular loan
- Higher EMIs: An immediate loan is repaid within a short span of times and therefore might lead to higher EMIs when compared to long- term loans
Things to Consider While Applying for Instant Cash Loan
- Borrow only if you need money: Since, these loans are easy to get, frequent borrowing should be avoided. Borrowing funds should be considered only when there is a financial emergency
- 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: If you compare instant cash loan offers from various banks, you might get an offer with the lowest interest rate and might save money while repaying the loan
Top Lenders Offering Instant Cash Loans in India
|Particulars||KreditBee||Early Salary||Home Credit||Cashe||StashFin|
|Interest Rate||Starting from 12.24%||24% to 30%||24% to 49%||33% to 36%||11.99% to 59.99%|
|Tenure||2 to 15 months||90 to 365 days||18 to 48 months||2 to 12 months||3 to 36 months|
|Loan amount||Upto Rs. 2 lakh||Upto Rs. 2 lakh||Upto Rs. 2.40 lakh||Upto Rs. 3 lakh||Upto Rs. 5 lakh|
|Processing Fee||Upto 3.5% of the loan amount||Upto 1.50% of the loan amount||0||Upto Rs.1500 or 3% of the principle amount whichever is higher as processing fees||As offered by the lender|
An instant 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.