When you are in a financial crunch, you might need instant funds to tide up your necessities. It can be a medical emergency, buying appliances, or renovating your home. Such requirements will not come with any forewarning. So, using your savings or opting for a secured loan might not be a good idea during these immediate necessities. Thus, you can look out for an instant personal loan that can save you from a crisis. An instant loan of 1 lakh is easily available in the financial market, and you can use this short-term loan to meet your emergencies.
As personal loans are more time-consuming, they become more famous and widely used. Compared with other loans, the application and approval process are speedy. How you use the loan is upto your choice. You can get a collateral-free instant loan with Buddy Loan, the best loan aggregators. However, there are certain things you need to know before applying for an instant loan for 1 lakh. This article will help you to learn more about instant personal loans and how it helps you.
Instant Personal Loans of 1 Lakh
Instant personal loans are loans that banks and NBFIs offer to meet your sudden financial requirements. It is an unsecured loan, where you don’t need to pledge any assets as security for approval. However, when you apply for a personal loan, lenders will first examine your credit report to know your creditworthiness. Lenders will also consider other factors such as your credit history, income level, and employment status before approving your loan application.
They will check your credit score to determine your repayment ability. So, maintaining a good credit score above 700 is vital for you. You can get personal loan of 1 lakh for many purposes, such as
Sudden medical emergencies like medical treatment, bills, surgeries, accidents, etc.
Traveling expenses for your dream place.
Launching or expanding your business.
Renovating or repairing your home.
Wedding expenses include venue selection, decoration works, catering, etc.
Purchasing vehicles like cars or bikes.
Buying electronic gadgets and appliances like mobiles, laptops, television, refrigerator, washing machine, etc.
Benefits of An Instant Loan
- Collateral-free loans -: If you are looking for suitable loan deals for immediate money needs, a short-term loan for 1 lakh is suitable. A personal Loan is collateral-free, so you do not have to worry about submitting your assets to get the loan.
- Flexible tenure & repayment -: Personal Loans provide flexible tenures from 6 months to 5 years, depending on your loan amount and other details. You can also select a suitable loan repayment tenure for your 1 lakh personal loan and repay the amount in EMIs. You can choose a better EMI and tenure for a Personal Loan of 1 lakh according to your repayment capacity.
- Quick & easy disbursal -: You can get the loan disbursal in 24 – 48 hours. If you are an existing customer or whether you have pre-approved loan offers, you are more likely to get a loan approved quickly.
- No end-use restriction -: You can use the loan amount to fund any expense such as purchasing gadgets, paying medical bills, paying wedding-related costs, etc.
- Minimal documentation -: For applying for the loan, you need basic proofs like Identity, address, and income proofs. This minimal documentation and hassle-free application process cut down your loan processing time. If you are eligible for a pre-approved loan, then no need for you to submit any documents either.
Credit Score – A must Factor For An Instant Loan
A credit score is a vital three-digit number used by most financial institutions to examine your credit behavior. It ranges from 300 – 900. Upon your credit score, lenders will decide whether to reject or approve your loan application. So a credit score matters when applying for a loan. Checking your credit score frequently will help you know about any errors or fraud in your account. You can also check whether you missed any payments. A credit score above 700 will help you to get a loan with various benefits, whereas a credit score below 600 might cause a rejection of the loan or might get high-interest loan approval. You can check your credit score via Buddy Score. Indeed, if you have a good credit score, you can enjoy various benefits.
- Best interest rates for your loan.
- Quick approval for your loan or credit card.
- Able to negotiate with the lender for better benefits.
- Higher chances for getting a more considerable amount of loan.
- Get quick pre-approved loans from banks.
- Choose your payment tenure as per your need.
Different Purposes Where You Use Instant Loans of 1 Lakh
You can utilize instant personal loans to fulfill various financial purposes. Let’s see some of the personal loans available for your necessities.
Medical Loans: If you are in any medical emergency, such as any treatment, accident, surgery, etc., you may need sudden funds. Thus, to cover those expenses, you can apply for a personal loan.
Home Renovation: You may find a shortage in funds for home renovation, kitchen remodeling, painting, and repair. Then you can get an instant loan for 1 lakh to meet your expenses because these works will increase the economic value of your home and it will benefit you more in the future.
Travel: As the fuel prices have risen, it has increased the cost of travel which can be a financial burden on your savings. But with a personal loan of 1 lakh, you can make your trip happy and memorable.
Business: While expanding your existing business, you may find a fund shortage. An instant loan for 1 lakh will help you meet those expenses smoothly.
Vehicles: You can take out a personal loan when buying a car or a bike (new or second-hand) without collateral.
Eligibility for Instant Loan For 1 lakh
|Age||21 to 60|
|Employment Status||Employed or Self-Employed|
|Minimum Income||INR 18,000 per month|
|Work Experience||Min 1 year completed|
|Credit Score||Above 750|
Instant Loan For 1 Lakh : Documents Required
|Proof of Identity||Aadhar Card, PAN Card, Driving License, Passport|
|Proof of Address||Electricity Bill, Water Bill, Passport|
|Proof of Income||Salaried: Bank statement for the past 6 months
Self-Employed: Bank statement for the past 3 months
|Work experience||Employment Certificate for a minimum of 1-year experience|
Steps to Manage Your Payments for Instant Loan
Getting an instant personal loan of 1 lakh is easy. But before applying, you must consider your financial position. Here is a list of factors you should consider when you apply for an instant loan.
Your purpose for taking a loan: You must realize why you are applying for a loan. So that you can analyze a clear picture regarding the repayment, and you can plan the loan according to your budget and the interest you can pay monthly. These will prevent you from applying for a higher amount of loan.
Plan your budget: Before you apply for a loan, do thorough research about the public lending institutions and calculate your EMI beforehand through an online EMI calculator. Doing this allows you to compare the interest rates and tenure provided by the different banks to make a better decision.
Timely repayments: Check your repayment capacity before applying for a loan. Paying your dues before the stipulated period is essential to avoid any defaults in your credit history. You can set a reminder to repay your dues on time. Eventually, it will help you in increasing credit score and creditworthiness.
Use your loan for debt consolidation: If you have any outstanding debts to be paid, you can opt for a personal loan of 1 lakh to repay your pending dues. Thus, you can repay multiple debts with a single loan at low interest.
Take financial advice: If you are confused about making the right decisions, it’s better to take professional financial advice from different banks, financial institutions, or NBFCs, which will help you to make a decision.
Common Mistakes to Avoid When Taking Instant Loan
Signing without reading the “Terms and Conditions” ultimately: To avoid any unnecessary legal disputes, you must make sure that you read the “Terms and Conditions” mentioned in your loan application. Check your application very well to avoid any errors.
Not calculating your EMI beforehand: Calculate the EMI you have to pay monthly before applying for a loan. It will help you to learn the interest rates and tenure from different lenders, and you can choose the one with the lowest interest rates.
Multiple loan applications at a time: Never apply for loans from various banks or lending institutions simultaneously. The reason is that every time you apply for a loan, the lender will conduct a credit check to determine your credit score. As a result, a hard inquiry will be reflected in your credit report, which will adversely affect your credit score.
Taking a loan more than required: If you take a higher loan amount than you need, you might miss out on payments because of the debt burden. And this will gradually affect your repayment history and reduce your credit score.
Not being clear about your purpose: Before applying for personal loan, you must know the reason for availing of one. It is a vital detail that will help you to plan the exact loan amount you require. It’s better to avoid taking loans more than you need.
An instant loan of 1 lakh can be availed quickly when in a sudden need. It is a great relief to cover your financial issues. You can apply online and get same-day approval & disbursal. Likewise, you can get a quick loan through Buddy Loan with an interest rate of 11.9% and a tenure period of 6 months to 5 years.
People May Ask
How long does it take to disburse the loan amount to my bank account?
You will get your loan amount directly to our account within 24 to 48 hours after the KYC verification.
Are there any additional charges included for a personal loan of 1 lakh?
Yes, you have to pay a processing fee and GST.