In financial emergencies, having access to quick funds can make all the difference.
Instant Personal Loans have become a popular option for anyone who needs cash urgently and cannot wait for the lengthy approval processes of traditional loans.
In India, there are several types of instant Personal Loans available, including travel loans, education loans, home renovation loans, medical loans, wedding loans, and debt consolidation loans, to name a few.
Professionals in progressive cities like Delhi, Mumbai, Bangalore and Pune prefer instant Personal Loans for their planned or unplanned expenses that require instant funding.
This article will provide an overview of how to get an instant Personal Loan in Pune and the factors to consider before taking out a loan.
What Is The Best Time To Take An Instant Personal Loan?
Here are some reasons to explain when the best time to take an instant Personal Loan might be:
- When you have an urgent or unexpected expense, you cannot cover with your savings or regular income.
- When you need to make a large purchase, such as a home appliance or furniture but want to maintain your savings.
- When you want to consolidate high-interest debt into a single, more manageable monthly payment with a lower interest rate.
- When you want to improve your credit score by demonstrating responsible borrowing and timely repayment.
- When you have a good credit score and income but need quick access to funds for a limited period.
- When the interest rates on instant Personal Loans are low compared to other forms of credit like credit cards.
Factors Affecting Interest Rate On Personal Loans
When taking out Personal Loans, the interest rate plays a significant role. In India, the range of interest levied on instant Personal Loans is 10-25%.
However, the interest rate depends on several factors: income, work experience, loan amount, and repayment capacity. Also, the longer the loan tenure, the higher the interest rate.
Individuals associated with reputed organisations also get attractive loans from financial institutions and NBFCs. However, it’s essential to note that not all lenders have the same policies, and some only look at the person’s credit history, income, and job profile.
So, before taking out a Personal Loan, research and check different lenders’ policies to make an informed decision.
Application Process for Instant Personal Loans
Before applying for loans, one must be eligible for the loans. Instant Personal Loans in India usually require age, income, employment, and credit score for the application.
The borrower must be in the age group of 21-58 years, employed for at least six months with monthly income of Rs 15,000. Self-employed individuals should have at least two years of experience in their current business.
Also, a strong credit score of 700 is recommended along with documents including identity, residence, income, and bank statements.
The application process for instant Personal Loans in India is primarily conducted online. Here are the key steps involved:
- Online application: Borrowers need to visit the lender’s website or mobile app and fill in the application form. They may be required to provide basic personal and financial information, such as name, address, income, employment details, and loan amount required.
- Soft copy submission: Instead of physical documents, borrowers may need to upload scanned copies of their documents, including identity proof, address proof and income proof. Some lenders may also ask for a photograph of the borrower.
- Verification and approval process: The lender will examine and analyse the applicant’s creditworthiness after receiving the application and papers. This may include reviewing their income, credit score, and employment status. The lender will accept or reject the loan application based on the assessment.
On approval, the applicant will get a loan offer containing the approved loan details, accepting which the amount will get disbursed to their savings account.
In any city in India, whether small or a metropolitan city like Pune instant Personal Loan can be used to obtain quick funds during a financial crisis.
However, it’s essential to consider the eligibility criteria, application process, and repayment terms before taking on any loan. Also, it’s crucial to borrow responsibly and ensure timely repayment to avoid penalties and financial problems.