An instant personal loan is one of the most sought-after credit options that enable borrowers to bridge any financial gap. It ensures individuals faster disbursement of funds, helping them meet varied expenses. 

The instant accessibility of the credit option, clubbed with a hassle-free application process, has made it viable for borrowers to sail through any monetary exigencies. Furthermore, an instant personal loan is highly convenient to access as it does not require lengthy documentation. In addition, borrowers do not have to pledge any security to lenders. 

Application Process for Instant Personal Loan

With robust digitisation in all sectors, it has become convenient for borrowers to apply for a personal loan online. The application process for an instant personal loan is minimal and permissive, unlike any secured credit options. Moreover, the online application procedure has reduced the processing time.

Here are the steps to guide borrowers to apply for an instant personal loan online. 

Step 1: Visit the official website of a preferred lending institution. Head to the product page and choose personal loan. 

Step 2: Click on ‘Apply Online’ and get redirected to the online application form.

Step 3: Provide the required personal and professional details to fill out the application form. 

Step 4: Now choose the desired loan amount and repayment term. Attach necessary documents and submit the form.

A representative from the financial institution will contact the applicant to take the remaining procedures ahead. As the name suggests, borrowers will instantly receive the desired loan amount in their account on successful verification. Borrowers can also opt for an instant personal loan offline.

Eligibility Criteria and Documentation for Personal Loans

Borrowers can reap the numerous advantages of the credit option only if they cater to the following eligibility criteria.

  • Applicants must be from India.
  • Individual’s age must be above 21 years.
  • He or she should have a CIBIL score of 600 and above.
  • Applicants must have a stable income status

Besides catering to the eligibility norms, individuals must also keep the following documents handy. 

  • KYC papers
  • Proof of identity
  • Residence proof
  • Proof of income (salary slips of last three months, bank statements etc.)

Benefits of Availing a Personal Loan

Instant personal loan bestows borrowers with the following benefits, proving effective at times of unforeseen monetary exigency. 

  1. Minimal documentation

Borrowers availing of an instant personal loan can access considerable loan amounts without undergoing a lengthy documentation process. Only by submitting a few primary documents, borrowers can get their loan application processed very quickly. 

  1. Convenient loan tenure

Borrowers can divide their EMI payouts over a long period. It helps in lowering the EMI burden and ensures on-time EMI payments. In order to choose a convenient repayment term, borrowers can use a personal loan EMI calculator. 

  1. Collateral-free loan 

One of the major benefits of availing of an instant personal loan is that the credit option is collateral-free. Borrowers do not have to pledge any tangible assets to obtain loan amounts. Furthermore, the absence of collateral streamlines the application process and helps borrowers dodge lengthy verification and documentation process. 

  1. Instant approval and swift disbursal

The most notable benefit of applying for an instant personal loan is that borrowers can enjoy instant approval of their loan application. In addition, lenders, on successful document verification, will initiate faster disbursal of loan amounts in a mandated account.

  1. Flexi loan facility

Borrowers can avail of a Flexi hybrid facility and make numerous withdrawals and deposits as per their financial requirements. In such cases, they have to bear the interest only on the withdrawn amount. 

  1. No end-use restrictions

This is perhaps the most lucrative benefit of availing of an instant personal loan. Borrowers can use the sanctioned amount in anyway they desire to spend it. 

Things to Consider while Availing an Instant Personal Loan

Before opting for an instant personal loan, borrowers must take into consideration certain factors that will help them make an informed decision.

  • Choose the loan amount wisely

As an instant personal loan is convenient to access, borrowers can get carried away and opt for a high-value loan amount. Hence, borrowers must evaluate their needs and expenses to understand the amount they actually need to borrow. This will prevent them from over-borrowing. In case borrowers find their monetary needs and expenses are unpredictable, they can conveniently opt for a Flexi personal loan. 

  • Maintain a healthy CIBIL score

CIBIL score is a significant determiner based on which lenders approve a borrower's loan application. Lenders can question a borrower's repayment capacity on seeing a substandard CIBIL score. A subpar CIBIL score can lead to the rejection of a loan application. Hence, borrowers must clear all debts, minimise credit utilisation etc., to enhance their credit rating and bag off great deals. The higher the credit score, the better is borrower's chance of receiving quick loan approval. 

  • Compare interest rates

Borrowers must invest some time in comparing different lenders and their offerings. Comparing multiple options enable them to avail of personal loan at a lower interest rate. Borrowers can conveniently explore different options by visiting the official website of different lenders. 

  • Consider additional charges

Besides levying interest rates, financial institutions charge various fees like processing charges, prepayment charges, cheque bounce charges, late payment fees etc. Borrowers need to access all these additional costs to derive a clear estimate of the cost of borrowing, helping them avoid the unnecessary monetary burden and manage their finances efficiently.

  • Measure repayment capacity

Before availing of a personal loan, borrowers must gauge out their repayment potential based on their income status and other financial liabilities. It will help them avoid last-minute monetary hassles and repay loan amounts on time. In this context, using a personal loan EMI calculator will prove beneficial. It will help borrowers compute EMI amounts beforehand and plan the repayment schedule accordingly. 

Instant personal loan is an effective way to fund varied monetary requirements. Individuals may get approval for a considerable loan amount. However, they must have a decent CIBIL score and steady income status. Instant personal loans can fund medical exigencies, carry forward higher education, expand businesses, consolidate debt, make big-ticket purchases, etc.