An instant loan that is also pre-approved refers to a short-tenure, collateral-free and fast loan provided by lenders such as banks and NBFCs. Having a good credit score and decent repayment track record is important for easily getting these types of loans.
An instant loan is an urgent loan offer that current and eligible borrowers can take as per their previous creditworthiness and record. If you already have a relationship with any lender, you can assess various personal loan offers customized as per your needs.
As you have already been approved for the same, you reap the benefits of on-the-spot approval. Also, you can use such mobile loan for debt consolidation, repairing or renovating your home, arranging funds for contingent medical expenses, and much more.
Instant loans consist of small loans that make funds accessibility much easier, quicker, convenient, and reliable and come with a reasonable personal loan interest rate. Read this guide to dive deeper into the pros of getting a personal loan.
Being eligible for any loan needs you to fulfill specific benchmarks set by your lender. When giving out offers for personal loans, many lenders check out the following points:
- No irregularity or delay in paying off debts or liabilities.
- Adequate income.
- Good creditworthiness.
- No delay or default in paying EMIs.
- Average monthly bank balance above the limit set by the lender.
After fulfilling all the above mentioned conditions, you can apply for pre-approved personal loans from your preferred lender.
When you get eligible for opting for an instant loan, it implies that your lender has your KYC-related details along with other financial information. Hence they might not ask you to present any documents. But, in a few cases, you might be required to provide some documents as stated below:
- Bank accounts statement reflecting your monthly income.
- A canceled cheque.
- KYC documents include Aadhar cards, PAN cards, voter ID cards, and passports.
Opting for instant personal loans can come with many advantages. They are as follows:
- Having your creditworthiness well in advance lets you get a loan application processed in just a few minutes, and what’s more? You get the sanctioned amount reflected in your bank account in just 4 hours.
- As the loan is pre-approved, lenders are aware that you as a borrower can be relied upon and also ensure that a competitive interest rate is given to you so that you can easily redeem the same.
- When it is about repaying your loan, you enjoy a flexible duration ranging from 24 to 60 months. However, if you wish to opt for a higher term, the overall interest you pay will increase, but this will come with a lower EMI. On the other side, if you wish to redeem your loan in a shorter period, the total interest to be paid by you will be less with a higher EMI.
Hence, it is advised that you select your repayment tenor with utmost care and make the most out of your funds.
Using all the above-stated pros of getting an instant loan through a safe and secure loan app makes it a prompt and reliable funding tool. Also, you get to enjoy various distinct characteristics from main lenders and get adequate time to arrange your cash flow and diminish your initial EMIs to a great extent.