Instant loans are easy to apply to online loans. They involve quick processing and require minimal documentation. Organizations like Prets514 have mastered the market for instant loans.
Types of Instant Loans
There are different types of instant loans. These are some of the common ones.
Short Term Personal Loans (SPTLs)
Digital lenders offer these loans, ideal for offsetting month-end crises. To get the loan, you apply online or through the app. Then, you upload your documents, and the money is disbursed into your account.
Personal Loans
These are the most common instant loans. The eligibility for these loans varies from person to person. These loans’ interest is usually higher than a secured loan, and the repayment period is flexible depending on your capability.
Top-up Loan
A top-up loan is a loan taken on top of another loan. The loan avails extra funds on top of an existing home loan or personal loan. It is relatively easier to process such a loan because the bank already has your documents.
Loan Against Credit Card
A loan against a credit score is possible through your credit card provider. This will depend on your repayment history and your credit limit.
Loan Against Savings and Insurance
The amount you get from the loan depends on the maturity value of your policy. If your repayment record is clean, you might get a significantly higher loan against your savings.
Top Features of Instant Loans
These are the features of instant loans.
Paperless Approval
Traditional loans require paperwork for processing. Instant loans are applied online; hence you only upload needed documents making the entire process paperless. After you have uploaded your documents, you won’t need to resubmit while taking a subsequent loan.
No Collateral
An instant loan is an unsecured loan. You will therefore not be needed to submit any security or collateral.
Instant Disbursal
Once the loan is processed, the money is deposited in your account instantly.
Minimal Processing
The processing time of instant loans is significantly less than secured loans.
Customizable Repayment Periods
The repayment period for instant loans is flexible. You choose a repayment period at your convenience.
Flexible Loan Amounts
You can easily select the amount of your choosing as long as it is within the availed bounds by the lender.
Competitive Interest Rates
It helps when you have a good credit score as you can be offered a loan at affordable interest rates.
What to Be Keen About
Before taking an instant loan, compare what different lenders have to offer. Here are a few comparison points.
- Processing Fee: All lenders charge a one-time processing fee. The processing fee will be reflected in your loan.
- Interest Rates: Take note of the interest rates as they will affect the amount you should repay to the lender.
- Default Penalty: In an instant, you fail to pay back the loan as agreed, you will be charged a default fee. Make sure you compare the default fees of different lenders before deciding.
- Repayment Flexibility: Consider lenders that you have repayment flexibility in terms of part payments and prepayments so that you can even repay your loan before the deadline.
Instant Loan Eligibility Criteria
Here are some things instant loan lenders might consider before approving you for a loan.
Credit Score
A good credit score will secure you an instant loan. But even better, your interest rates may be lower than those of a person with a bad credit score.
Age
Age qualification might vary from lender to lender. Do your diligent research before approaching a loan vendor.
Occupation
These loans are available to both salaried employees and self-employed individuals.
Bottom Line
Now that you know about instant loans feel free to search for the best providers with the lowest interest rates and start your journey to financial freedom. Just make sure you use the money wisely.
