At times, we all come across some unexpected personal expenses for which we do not have enough funds. Availing an instant loan is the right option in such a situation. Easy to apply online, these instant personal loans are for shorter tenure and involve quick processing, require minimum documentation and are disbursed quickly.
Here are some instant personal loan options that you can opt for:
- Personal Loans: A personal loan is the most common unsecured loan that is availed by the masses to deal with financial crises. Many banks and NBFCs offer this loan starting from Rs. 30,000 to Rs. 40 lakh and sanction the loan on the basis of your eligibility. The interest rate on this loan is generally higher as compared to secured loan and the tenure is flexible to repay the loan as per your convenience. You can compare and apply for personal loans at Paisabazaar.com
- Short Term Personal Loans (STPLs): STPLs have recently gained a lot of popularity in India and they provide a loan of as low as Rs. 1,000. Offered by many NBFCs and digital lenders, this type of loan is ideal to deal with month end financial crises. To avail this loan, all you need to do is to apply online or through the app and upload your necessary documents and the money will instantly get disbursed to your account
- Top- Up Loan: Have an existing home loan or personal loan? If yes, you can use this loan to get a top- up loan and avail extra funds. As the bank already has all your personal details and documents so you can process this loan just by filling a form and completing a few formalities
- Loan Against Credit Card: If you have a credit card, this type of loan may be offered to you by the credit card provider depending on your repayment history and credit card limit. The pre- approved loan requires minimum processing and the funds get disbursed quickly. You can also contact your credit card lender to apply for this loan
- Loans Against Savings and Insurance: Offered by many banks and NBFCs against your small savings instruments like insurance policies, FD or National Savings Certificates (NSCs), this loan is also known as the demand loan. However, the loan amount that you get depends on the maturity value of your policy or NSCs. If you have a clean repayment record, you may get a loan amount up to 90% of your saving value
What Are the Things to Consider Before Applying for an Instant Loan?
Things to consider before applying for an instant loan are:
- Loan amount: Make a list, prioritize and decide the personal needs that you will be financing with this loan. Also, make a list of other expenses that would be consuming your monthly income along with the EMI. Based on the prioritization and other expenses, decide a loan amount that you need to borrow. Try to manage as many expenses you can with your monthly income
- Evaluate your repayment ability: Before applying for the loan, prepare yourself for repayment and analyze if you can repay the loan without any inconvenience. Do not borrow more than you can repay and keep a track of your other expenses
- Choose an appropriate tenure: After analyzing your repayment ability, choose a tenure that allows you to repay the loan without any stress. The tenure usually varies from 12 to 60 months and can be decided by the borrower
- Compare interest rates: Irrespective of the type of loan option you choose, don’t settle down for the offer by the very first lender. Compare the interest rates by other lenders so that you get the lowest one
Instant loans can save you from the embarrassment of asking money for petty things from your relatives. However, borrow smartly and don’t fall into the debt trap.