Instant Loan is a digital transaction in which the lender lends money to the borrower without any paperwork. Instant personal loans are the digital loans which are processed online. This type of loan is called instant loans because of being fast in processing and disbursal. Every step of an instant loan is taken online which makes the processing faster than any other type of personal funding.
From deciding the loan amount to finding the right lender or EMI of the loan is carried out online. The online processing eliminates both the need of middle man and paperwork which makes the instant loan dispatched early.
Features of Instant Personal Loan
Instant personal loans are gaining popularity among youths for some good reasons. Here is why an instant loan is preferred by many youth professionals-
As the name suggests, instant loans are disbursed quickly which makes it best tool to fight financial emergencies. An instant loan is disbursed within a few hours of applying for it.
Short Term Loan
Unlike other financing tools, an instant loan is a short term loan. This type of loan repayment can be done within a year. Hence, the borrower does not need to carry the debt burden for a longer span of time.
No Physical Documentation
An instant loan does not require any physical document. The exclusion of physical document has made this loan much handy.
The lender of an instant loan never interferes in the usage of the loan amount. The borrower can use the loan amount for any personal use. The freedom of usage of the loan amount is one of the advantages of an instant loan.
The repayment of an instant loan is done in EMIs which is the easiest way to repay any kind of loan. The auto EMI deduction if the loan makes the repayment very simple.
The entire processing of instant loan is done online. One can apply online for an instant loan, can send the documents online and can e-sign the loan agreement. The online processing of the loan makes the applicant apply for the loan anytime and from any place. The flexibility and ease of getting approval, make this credit product popular among the youths who are ever busy.
Collateral Free Loan
Instant loans are collateral free loans. One can avail of this type of credit without any security or grantor. So it keeps the borrower free from the risk of losing their asset in case of non-payment of the loan.
How to Apply for an Instant Loan
Before you apply for an instant loan, you are to find a lender which suits your requirements. The terms and conditions may vary from lender to lender. Presently, almost all public and private banks are offering instant loans. Not only banks, one can find attractive offers on instant loan from NBFCs too. The instant loans from fintech companies are much easier to avail than availing the same from a public sector bank.
Steps to Apply for an Instant Loan
- Visit the website of your preferred lender.
- At the first step, you are to enter the desired loan amount.
- Now you are to give some basic information such as age, gender, employment status, Pan number etc.
- Once you have given all the required documents, the lender will contact you and ask you to upload the required documents.
- Your documents will be verified and the disbursal of the loan will be processed.
The documents required for an instant loan are very basic ones. The main three categories of required documents are- Identity proof, Address proof and income proof.
The documents that are considered valid for identity proof are- PAN card, Aadhar Card, passport, driver’s license etc. For address proof, the loan applicant can provide utility bills, rental agreement, Adhaar card etc. The loan applicant has to provide the last three months salary slip or the bank statement as income proof document.
The Last Lines
An instant loan is a great credit instrument to get immediate funding. The seamless processing and instant disbursal of the loan amount make its best tool to get liquid fund in no times. Whether it may be a last minute travel plan or a medical emergency, an instant loan is a great fit for all your monetary needs.