In the era of fast- paced life, we all want things instantly, isn’t it? Then how can your financial journey be left alone? And, keeping this thought into consideration, an Instant Loan is here. That’s Right! To fulfill your needs in the least time frame, you can rely on an instant loan. But when it comes to availing the same, your three-digit numeric summary, commonly known as cibil score is always under a scanner of lenders. Yes, the one practice that lenders always follow is to check the score of a borrower before offering a loan. And, in the case of instant loan, the score of an individual should be fair enough to grab the deal.
Instant Loans, also known as quick loans require minimal documentation and are easily & quickly approved without any collateral/asset submission.The online applying process includes filling a loan application form. However, it can also be applied through a pre-approved loan facility offered by banks to their existing or good cibil score customers.
Why CIBIL is Important for Availing an Instant Loan?
If we talk about the cibil score, it ranges between 300-900, and a score above 750 out of 900 is considered to be ideal for instant loan approval. This three-digit summary indicates an individual’s creditworthiness and gives a clear picture of his financial health. Before providing the instant loan, the lenders need to trust a borrower as far as loan repayment is concerned. And, this can only be done by checking a borrower’s credit history or past repayment schedule.
And, this is the reason, lenders always keep an eye on cibil and give loan approvals only when the credit history/profile of a borrower is in a good state. Thus, it is always advisable to maintain a healthy score as it not only helps in getting instant approval but one can also enjoy many perks such as low-interest instant loan, less processing fee & other charges, flexible repayment tenure options and many more.
But what if you are a First Time Loan Borrower? How a lender can rely on you when it comes to loan repayment?
Instant Loan for First Time Loan Buyers
Worry not, because this is where the instant loan can help first-time loan borrowers also in building their credit history.
Yes, instant loans are normally short-term loans that can be given for a short period. Thus, plays a helping hand in generating a first-time loan borrower’s repayment track. It prepares such individuals for the future borrowings, making their loan profile eligible in the eyes of the lenders.
Instant Loan Will Be a Double Bonus If
- You are an Individual working in leading MNCs(CAT A or CAT B), or a Government Employee.
- Your monthly income is high, and monthly expenses are less
- You have a habit of saving money or like to invest in saving instruments like PPF, FD, Mutual Funds( SIPs),etc.
However, do not forget the timely repayment of the same to enjoy a hassle-free instant loan journey.
A Healthy Cibil Score = Instant Loan Approval = Happy You
In case you have a query on instant loan, read below to have more clarity on the same.
What is an Instant Loan?
A loan which doesn’t require too much documentation and is easily & quickly approved without any collateral/asset submission. The process is simple and convenient compared to traditional bank loans. Instant loans are also termed as a short-term personal loan or quick loan that can be applied online without visiting any bank or filling out lengthy forms. Thus, this loan saves a lot of time of a lender as well as a borrower.
What Makes an Instant Loan in India So Popular?
With the ever-growing need for instant money, banking these days has also changed and changed for the better. That’s Right! With the arrival of instant loans, the concept of less documentation and fastest loan disbursal process has garnered a lot of limelight. And, this is the reason why an instant has become the first choice of many as far as fulfilling the various personal needs is concerned.
An instant can be availed for the below reasons/purposes.
- Credit Card Debt
- Home Renovation/Extension
- Child Education
- Medical Expenses
Features of Instant Loan
Quick Approval & Disbursal: The feature of the fastest approval and disbursal is what makes instant loans so popular these days. Once you meet the eligibility criteria, getting the loan amount is a hassle-free process.
Minimal KYC Documentation: With fewer KYC documents, you can get this loan. Make sure your documents such as Identity Proof, Income Proof, Address Proof, etc are ready.
Good Loan Amount: In case of an instant loan, the loan amount ranges between Rs.5,000 to maximum up to Rs.2 lakh which means your instant financial needs can easily be covered.
Flexible Repayment Tenure: A borrower can repay the loan by choosing a flexible tenure of up to 1 year. This repayment tenure allows a borrower to enjoy easy EMIs and less loan burden.
Eligibility to Apply for Instant Loan
Make sure you fulfill the required eligibility criteria when it comes to approval for an instant loan.
|Minimum Income||Salaried:Rs.35,000 monthly( in metro cities), and 20,000 (in non- metro cities)|
Self-employed:Minimum ITR of 3 lakh (Annual)
|Minimum Work Experience||2 Years|
|Minimum CIBIL Score||Above 750(out of 900)|
|Processing Fee||2%-2.50% of the Loan Amount+GST|