You might be going through a phase in your life where you desperately need money. It can be for any reason, including medical expenses, wedding plans, starting your business, etc. In such situations, applying for a secured loan is a long and hectic process. And with the increase in digitalization and technology upgradation, people expect everything to happen instantly without leaving the comfort of their home. The same goes for getting a loan; many banks and NBFIs have started providing instant money loans online at your fingertips. It has led to an increase in demand for instant loans online. Now you might be more curious to know more about instant money loans. This blog will explain in detail what is an instant money loan, its eligibility, and how you can get one.
Instant money loans are personal loans offered by banks and lending institutions to cover sudden financial needs. Since it is an unsecured loan, you don’t have to pledge any collateral as security to avail of this loan. As a result, processing your application is quick, and you get your loan amount within a few hours. When you apply for this loan, lenders will conduct a credit check to know your creditworthiness. And they consider other factors such as your credit history, income level, and employment status before approving your application.
Hence, read on to know how you can quickly get an instant money loan in just a few hours. This blog will give you a detailed guide on instant money loans, benefits, eligibility criteria, and documentation required.
Types of Instant Money Loan
You can avail of Instant money loans or personal loans for various financial needs. Here are a few types of instant money loans that you can help yourself:
- Medical Loans: If you are in sudden need of cash for any medical emergencies such as treatment, accidents, surgery, etc., you can get a personal loan to cover the cost of medical expenses.
- Wedding Loan: A wedding usually costs somewhere around INR 10 lakhs to INR 20 lakhs which includes venue selection, decorations, catering, attire, invitation cards, etc. Therefore, the best option to handle those expenses is to take a personal loan.
- Home Renovation: You can take an instant loan without collateral to cover expenses such as home renovation, kitchen remodeling, painting, and repair. Consequently, the economic value of your home will also increase.
- Travel: The recent inflation in fuel prices has also increased the cost of traveling, which can burden your savings. Therefore, you can take out a personal loan and make your trip happy instead of spending your savings.
- Business: If you want to start your own business or expand your existing one, a personal loan will help you meet those expenses smoothly.
Benefits and Features of Instant Cash Loan
Instant money loans are more convenient compared to other loans for the following reasons:
- No Hidden charges: Instant money loans have no prepayment or hidden costs. However, it may have charges such as processing fees and a GST of 18%.
- Collateral-free: Instant money loans do not require any collateral as it is an unsecured loans.
- Instant approval: The verification process is online, so your loan will get instantly approved once the verification is complete.
- Get the loan within 24 hours: Your loan amount will be credited within a few hours to your bank account once the lender approves your loan.
- Minimum Documentation: You only have to produce minimum documents such as your Aadhar card, PAN card, bank statement, etc.
- Flexible tenure for loan: You can repay your debt through monthly EMIs. And select the repayment term ranging from 6 months to 5 years, depending on your loan budget.
|21 to 60
|Employed or Self-Employed
|INR 20,000 per month
|Min 1 year completed
|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
|Employment Certificate for a minimum of 1-year experience
How To Manage Your Payments Of An Instant Money Loan
Getting an instant loan is easy, but you should consider your financial situation before applying. Here is a list of factors to consider before you apply for an instant money loan.
- Identify your purpose for taking a loan: You must know why you are applying for a loan to see if you have the repayment ability. And you can also plan your budget for the loan and the interest you can repay.
- Plan your budget: Before applying for this loan, thoroughly research the interest rates offered by various lenders and calculate your EMI from websites. Therefore, it will prevent you from taking out more than required.
- Repay on time: Before applying for a loan, check your ability to repay the loan. The reason is that you have to make payments on time to avoid hurting your credit score. Hence, you have to pay your dues before the due date.
- Use your loan for debt consolidation: If you have any debts pending, you can use a personal loan to repay your unpaid debts.
Factors That Affect The Approval Of Your Loan Application
According to the lender, the higher your monthly income, the greater your borrowing capacity. Hence, you must have a minimum monthly income of INR 21,000 to get your loan approved
Lenders will check your credit score to know your creditworthiness before approving your loan. And a score of above 750 is considered good, showing your capability to repay your dues on time. You can also check your credit report using Buddy Score instantly to know your creditworthiness.
Accurate and valid information:
You must fill out the application with the correct details for background verification. Also, submit valid documents such as Aadhar Card, PAN card, passport, etc. for KYC verification. If there is any error in the information provided, your loan application will be rejected.
Lenders check if you have a steady flow of income to determine the risk they bear by lending you a loan. And you must have at least one year of complete employment history for your loan application to be approved.
If you have any outstanding debts, your credit score will be low, increasing the chances of your loan application getting rejected. Hence, repay all your debts on time to improve your creditworthiness.
Things To Remember When Applying For A Instant Money Loan
- Check your credit report once a year to identify any potential errors and get them rectified instantly. Also, maintain your credit score above 750.
- Ensure that you qualify for the required eligibility criteria.
- Maintain your Debt-to-Income ratio less than or equal to 50%.
- Submit all the documents for verification, such as Aadhar Card, PAN Card, and Passport.
- Calculate your EMI beforehand to plan your budget better.
In this digital era, you can get instant money loans online at your fingertips. Likewise, you can use Buddy Loan and get personal loans at low interest rates. As it is unsecured, it becomes the most easily accessible source of funds when you need instant funds. Moreover, you can use a personal loan to meet financial needs such as medical, travel, wedding, business development, etc. Last, you can check your credit score using Buddy Score and get a credit report to know your creditworthiness.
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Q.Can I use personal loan apps to apply for an instant money loan online?
A. Yes, you can use personal loan apps like Buddy Loan app, which is safe to apply for an instant money loan online.
Q. Can I apply for a personal loan to relocate to another place?
A. Yes, you can apply for a personal loan if you plan to relocate to another place, as it will help you cover all the moving costs.
Q. How many hours will it take to get my loan amount?
A. You will get your loan amount within 24 to 48 hours of verification.
Q. How to improve my credit score?
A. You can improve your credit score by making timely payments, repaying your pending dues, etc., and maintaining your credit utilization ratio of less than 30% of your credit limit.
Q. I want to start a small business. Can I apply for a personal loan?
A. You can get personal loan and use it to start your small business.
Q. What is the age range to apply for a personal loan?
A. The age range starts from 21 to 60 years to be eligible for a personal loan.