An instant personal loan is a short-term loan generally taken for quick cash. It comes with comparatively high-interest rates if you compare it with secured loans like home loans, etc. Instant personal loans don’t need a lot of paperwork and are approved quickly without collateral.
Taking an instant personal loan is convenient and less time-consuming if you compare it with other conventional bank loans. Instant personal loans are also known as “quick loans.” You can apply for an instant personal loan online from the comfort of your home or office. You don’t even have to fill out lengthy forms at the bank. But that is not all. There are numerous other advantages to getting an instant personal loan, which have been discussed here.
5 Benefits of Instant Personal Loan You Should Know
If you want to get a personal loan, you must try and apply for an instant personal loan first. These are the top 5 benefits of an instant personal loan you should know;
No papers required
When you apply for any other loan, you have to provide multiple documents to your lender. And once you provide these papers, only your loan proposal moves forward. However, applying for an instant personal loan is different. You don’t have to provide any such documents.
Even if you have to submit some papers, it is 100% online. It, in turn, makes the whole process paperless. Also, if you are an old customer with pre-approved loan offers, you can apply without any papers.
Instant personal loans are collateral-free. As a result of its zero-collateral nature, it is easier to get than any other consumer loan. The lender only checks the borrower’s income flows. It is to ensure that the borrower can repay the loan.
An instant personal loan is more like an unsecured personal loan. Here, you don’t have to put up collateral to get a loan. However, it’s much easier to get an instant personal loan. You will not even have to submit any collateral or provide a guarantor.
Instant disbursal to your account
If you are in an urgent situation and need money urgently, applying for an instant personal loan is always beneficial. If you have a pre-approved loan offer, that’s even better. Then, the money will go directly into your account without any lengthy process. Even if you don’t have a pre-approval offer, you must submit some paperwork. You will receive the loan offer on the same day.
Customizable loan tenures
When you apply for an instant personal loan, you opt for a flexible loan tenure in most cases. It means you can choose a repayment term that suits your needs. This tenure is only subject to the lender’s full loan tenure.
Affordable interest rate
The expense of a loan depends on its base annual interest rate. In the case of instant loans, they generally have lower loan tenures. With a lower tenure, instant loans will have a much lower overall interest expense than conventional loans like personal loans, etc., thus making instant personal loans more affordable.
However, an individual with a good credit score will be more likely to get a loan at an affordable interest rate. The general expense of an instant personal loan is very low. It is vital to note that if you are a first-time instant loan applicant, the interest rates will be higher than for experienced borrowers. This is because they have a better credit score.
A good way to lower your interest is by making regular payments after getting a personal loan. It will allow you to build a healthy credit score, giving you access to lower interest on future loans.
No questions asked
If you take an instant personal loan, you can use the loan minus a precise use case. In most cases, you are not interviewed by the lender about your reasons for borrowing. An instant personal loan is one of the preferred methods of consolidating debt. Instant personal loans provide flexibility at a much more affordable rate compared to credit card loans.
Things You Should Avoid While Taking a Personal Loan.
These are the things to be kept in mind when applying and should never do about a personal loan;
- Unwise selection of repayment tenure
This is one of the crucial factors that you should select with utmost care. The loan term the lender gives varies, generally up to 60 months.
However, it would be best if you understood that longer payment terms would attract more interest on the loan payment. If you want to avoid spending money on interest, choose a reasonable repayment term.
- Borrowing more than you need:
Because of your clean credit score and loan repayment history, lenders might offer you instant personal loans up to Rs. 50 lakh. However, as the borrower, you should decide on the loan amount that you need for its purpose. You should not apply for a larger sum simply because you can, but rather take what you need to meet your immediate needs.
- No reading the actual terms and conditions:
You must read through the terms and rules of the instant personal loan before you agree to the documents. Being aware of these terms and conditions will help you if there are problems tomorrow.
These were some of the most crucial benefits of taking an instant personal loan. You can borrow an instant personal loan for different purposes. This includes debt payments, emergency costs, and much more. These loans are repaid in EMIs over the loan’s tenure.
Do you want to get an instant personal loan today? Piramal Finance is an NBFC that offers this type of loan with an affordable interest rate. Get started today by visiting Piramal Finance, and you can also read other offers related to instant personal loans.