The world witnessed the Covid pandemic recently, which turned life to a standstill. People were helpless when they faced tragic losses. But a rise in necessity was always there, and the need for daily errands was affected by inflation. Even Though people choose to stay inside their houses, the financial troubles strike them very severely. Whatever happens, life has to move on to the next level, but people need funds to fulfil their needs and emergencies. Whether a medical emergency or renting an apartment, the necessity for money never ends. What to do when you have no other way to arrange funds for these emergencies? The best solution is apply Instant Personal Loans. Nowadays, with simple procedures, you can avail a loan instantly.
You can apply through the mobile application of a bank/lender or use an official website of a reliable bank/NBFC. Recently there has been an increase in the usage of online personal loans. Almost 77% of the working population rely upon online personal loans to cover their needs. As per RBI perspectives, in March 2021, personal loans reached 13.5% of YoY growth.
Getting an online personal loan in emergencies became a widespread thing. You can apply for instant personal loans via Buddy Loan with minimal documentation & quick procedures.
Reasons for Huge Demand of Applying Instant Personal Loans
Money is a vital factor that shapes your life and predicts your future, and it is the key that makes your troubles vanish. Recently, there has been a tremendous demand for instant personal loans, and the main reasons are -:
The pandemic caused massive damage to the world economy. Unemployment, increased inflation, and a drain on savings are significant reasons for going for an instant personal loan for various purposes.
Digitalization of Indian Economy -:
Last few years, digital transactions have been encouraged more by the government to make the digital India campaign successful. Now banks and financial organisations provide their services online. With this intense digitalization, you can open a bank account online, transfer money from one account to another, apply for credit cards/loans, and do other tasks without a direct visit to the bank. Now, most people use UPI payment methods for their day-to-day transactions. However, you can easily apply for a loan online and get cash in your account.
Availability of Personalised Loan Products -:
The reason for taking a loan will be different from one to another. You can apply for a loan for any purpose such as medical treatment, buying urgent goods, for higher education, wedding parties, foreign trips, etc. Here emerged a demand for personalised loans. Moreover, it’s easy to avail of a loan and get funds in a short time.
Dramatic Change in Credit Lending Policies -:
Hyperinflation, Covid-19, lack of employment opportunities, reduced monthly income, and other factors negatively affected many people’s lives worldwide. Many banks and NBFCs improved their credit lending policies. Nowadays, you can get a loan digitally with a quick process. In recent surveys in 2021, most working and self-employed people opt for personal loans to meet their financial emergencies.
Apply Instant Personal Loans Online
Personal loans are secured ones that don’t need any collateral for approval. You can avail of a loan with minimum documents and with paperless procedures. You can use the loan for medical expenses, home renovation, travel expenses, wedding plans, etc. With a reliable lender, you can apply for an online loan through mobile applications or the official websites of certain lending institutions.
Advantages of Applying Instant Personal Loans
Most banks and lending institutions provide loans for you if you are eligible. The significant benefits of a personal loan are -:
Quick approval -:
Once you submit your application, the personal loan will be approved instantly for eligible customers.
No need for collateral -:
As it is unsecured, you don’t need any collateral to approve a personal loan. That’s why you can quickly get the loan without any hassle.
You have no restriction over the purpose of the loan, and you can use the amount for your reasons. Thus personal loans are more popular today.
Minimal documentation and easy to avail -:
It is one of the most significant advantages of a personal loan. You only need minimum documents for the approval of the loan. Once your verification is over, you can easily avail the loan within a snap of time.
Improve credit score -:
A personal loan will help you show the lenders your repayment capacity and responsible credit behaviour, and it will eventually help you to improve your credit report.
Low interest rates -:
Compared to credit card and credit card loans, interest rates for a personal loan are lower. Through Buddy Loan, you can get a personal loan with a minimum interest of 11.9%.
Minimal processing fee -:
Bank will take 2.5% to 3% of the processing fee according to your loan amount.
Debt consolidation -:
The best way to use a personal loan is to consolidate your existing debts. Instead of paying multiple dues monthly, you can pay off existing debts with a new loan and pay only one EMI.
Online application process -:
Applying for a loan online is smoother and more straightforward. Before applying for loans, you need to gather enough information and examine the better offers. Select the loan package and bank after a thorough evaluation. Before submitting the form, re-check the details you provide for any errors.
Flexible repayment tenure -:
While applying for a personal loan, you can select the repayment tenure according to the EMI you can pay monthly. Most banks will provide a repayment tenure of 6 months to 5 years.
Prepayment closure -:
Even if you opt for a longer-term repayment, you have an option of prepayment to pay off your loan. Some banks will process prepayment penalties or charges for that. So before applying for a loan, check the prepayment details of a respected authority.
Different Types of Personal Loans
Personal Loan for Wedding
Compared to other countries, weddings are expensive in India as they are full of various customs and cultural diversities. Thus, you can plan a wedding with a personal loan without disturbing your savings.
Personal Loan for Home Improvement
When you want to do repair works or renovation at your home to increase its market value, you can opt for a personal loan to complete your needs.
Personal Loan for Travel
Do you want a break from your hectic life? Need to go for a trip without disturbing your monthly budget? You can take a personal loan and enjoy your vacation in your dream destination.
Personal Loan for Consumer Durables
Easy to avail loan with no EMI, can be used for buying any equipment or gadgets. A durable consumer loan divides the product amount into EMIs and can be repaid over a particular time.
Top Up Personal Loans
You can get a top-up loan from the lender from whom you already took a loan, and you have to repay it within the tenure limit of the existing loan.
Personal Loan Eligibility
The applicant must be qualified as -:
- An Indian citizen
- Above 21 years when applying for the loan.
- A minimum of two years of employment in the current organization.
- Monthly income of Rs.18,000.
- Completion of a minimum of three years in the business for self-employed.
- A credit score of above 700.
Importance of Credit Score
A credit score is a numerical value that varies from 300 to 900. The three-digit number displays your creditworthiness to the lenders. When you apply for a loan, the first thing lenders evaluate is your credit score. Higher your score gets you more benefits. Hence, maintaining your credit score is essential. You should check your credit score regularly to avoid errors or fraudulent activities. Don’t know your credit score yet? Discover your score using Buddy Score.
Benefits of Credit Score
A good credit score provides more advantages for you rather than a low score or no score at all.
Low-interest rates and Better terms on credits
Banks might provide you with a loan with lower interest rates when you have a higher credit score. Lenders will be satisfied with your credibility to get discounts on processing fees.
Improve your chances of loan approval
Your loan application can be considered a low-risk profile with an excellent credit score. Thus, you have a higher chance of approval.
Get approved for a higher loan amount.
Bank will provide a higher loan amount for you with a stellar credit score. Your credit history is proof of your responsible credit behaviour and repayment capacity that allows lenders to provide you with such benefits. Even Though you are eligible, apply only for the required loan amount.
Eligible for a pre-approved loan
You can avail a pre-approved loan with a good credit score. Here, you will get instant approval and disbursal of funds.
Therefore, a good credit score is mandatory for enjoying these benefits. It’s essential to practise a habit of checking your credit score to ab]void any missed payments and errors.
The Future of Personal Loans in 2022
Expert financial advisors predict that you can witness an increase in interest rates for personal loans in 2022. Thus it will increase the demand in the world economy. The troubles and financial shortage will always be there with you, and the necessity for urgent funds. Gradually, Personal loans are becoming a trendsetter for financial transactions.
People have recently required instant loans to meet their financial crunch because of lifestyle inflation. Personal loans will be of a higher standard in the credit lending system. Thus, with proper planning and evaluation, you can apply for a loan with a reliable bank or NBFC. Choose wise offers which benefit you more.
Having any queries? Do reach us at email@example.com
Q. What is the maximum amount of loan I can get quickly?
A. You can get a loan of a maximum of 15 lakhs.
Q. Can I apply for an instant personal loan online?
A. Yes, you can apply for a personal loan with a mobile application of a particular bank or reliable websites which provide digital transactions.