There are times when you meet financial emergencies where urgent funds are required. It can be an underprepared medical emergency, sudden job loss, or urgent travel. Even for small businesses sometimes you need instant money to maintain the cash flow or to fulfil your business needs. Well, in these conditions it becomes extremely difficult to gather funds in such a short time.
However, if you are already aware of same-day personal loans then availing one might help you. These loans can be availed for any purpose and are available online which makes it convenient for the borrowers to apply from the comfort of their home. And the best part is, as the name suggests same day personal loans are disbursed on the same day when you apply for it.
What are the Same Day Loans?
Same Day loans are also known as Instant personal loans are funding solutions available to people who need urgent funding within a short period. These loans are kind of personal loans only and are unsecured. The loan is processed online through a completely digitalized channel and is disbursed to the borrower’s account within a few hours of approval. The loan comes with no-end use restriction and doesn’t require any collateral against the money lent. All this increases the risk involved to the lender in case of non-repayment and hence they charge a higher interest rate for it as compared to the other loans.
Eligibility required to avail same day loans in India
Age (Min-Max) – The minimum and maximum age required to avail same day loans in India range from 25 to 60 years.
Income – Income is considered to be one of the most important eligibility factors as it decides your repayment potential. The current income required to avail of a same-day personal loan starts from ₹ 25,000 monthly.
Employment – To avail the same day personal loan or instant personal loan you need to have a fulltime job with at least 2 years of experience in the current profession and a stable career as well. However, if you are self-employed it changes to a 5 year of working tenure for your business.
CIBIL- To avail of any loan you need to have a good CIBIL score and availing the same day loan is not an exception. Hence it is required to have a CIBIL of 750 to 900 in terms to get approved for this loan.
Same day loans Interest Rate
The interest rate charged for same day loans is slightly higher than other secured loans, for example, the interest rate charged for a home loan is 7 to 8% while for the same day loans it starts from 10.5% and can range to 24% p.a. The Cost you pay taking the loan and can change your monthly instalment amount substantially. Moreover, the interest rate is fixed for the entire loan period. So, it is quite important to spend some time and find the best offers and rates to save money. To do this you need to compare different lenders for their offering and terms.
This is the time period in which you need to repay the borrowed amount along with the interest. And for same day loans, you get a tenure period ranging from 1 to 5 years to repay the borrowed amount. However, a smaller tenure means higher EMIs. So you need to be extra careful while choosing the loan amount and tenure both. Remember borrowing within repayment capacity is best. To be more accurate you can always use an EMI calculator to know the estimated EMI.
Features Offered by Same Day Loans
- 100% Paperless process
- Online Application
- Loans from 50k to 20 lakhs
- No collateral required
- No end-use restrictions
- Quick Disbursal
Some of the pitfalls which use should always keep in mind before you apply for the same day loan.
- High-Interest Rates
- Can lead to a debt trap if not taken care of
Same day loans are the easiest and quickest way to raise funds in a short period. But you need to know that the interest charged for it is higher and hence paying its EMI can affect your finances. So, it is quite important to know your affordability before you avail of the loan. Don’t borrow more than your repaying capacity so that you don’t feel burdened while repaying it. It is also important to read all the terms and conditions carefully before you sign the loan agreement to ensure there is no issue in the future.