A financial emergency may strike you at any point in time. It can be in the form of medical emergency/ loan repayment etc. One might not be prepared to deal with it at all times. In such chaotic situations, an instant cash loan comes in handy.
One may avail of an instant cash loan to meet any financial emergency such as medical bills, wedding expenses, school fees, etc. There is no restriction imposed on the purpose for which one can avail of an instant loan. In addition, there is no collateral security assigned to a cash loan making it customer-friendly. These are generally short-term loans and can be applied through a website or mobile app in no time.
Features of Instant cash loan:
Here are some interesting features of an instant cash loan:
1) Digital Processing: Loan processing happens online which reduces the time and effort. One need not go to the bank or any lender’s office to submit documents and get a loan sanctioned. It may be availed within 1 hour making it the best choice for your emergencies.
2) Interest rates: Interest rates for quick cash loans are maintained at an affordable range of 1.5% to 2.25% per month to ensure that the same is lucrative when compared to traditional loans. The objective behind such low rates is to increase customer reach.
3) Credit Score: A credit score indicates the past repayment pattern of loans availed by the requisitioner. Say, a requisitioner opted for a loan and has always repaid the same as per schedule, his credit score shall be on the higher side and vice versa. A score of 650 and above is considered to be decent for processing loans however any score below the limit of 650 is considered to be risky as the probability of non-repayment increases.
4) Loan tenure: Loan tenure for a cash loan has a maximum ceiling of 5 years. However, some lenders may opt to provide higher tenure as well. In general, anything between 12 months – 60 months is considered the industry average.
Eligibility criteria for a 1 Hour loan:
Eligibility criteria for issuance of a 1 hour loan are set by RBI and the same is detailed below:
- The candidate must be an Indian citizen,
- He should carry a valid Aadhar card or PAN Card,
- He should be of age above 18 years,
- Minimum salary requirement is also set by various lenders to maximize the recovery and reduce cases of bad debts.
The eligibility criteria for cash loans are relaxed to improve customer reach. To increase reach, some banks opt for providing loans without submission of any documents.
Best ways to apply for an instant loan:
- Approach your bank:
Loyalty plays a key role in the financial services sector. In case you have a savings bank account and existing loan with the same bank for over 10 years. It means that a loyal relationship is already established and the same can be leveraged for getting an instant loan sanctioned. It is preferable since all your information is already available with the bank and can be processed immediately.
- Loans from app-based lenders:
The best way to apply for an instant cash loan online is through these mobile app-based lenders. They provide loans with minimum/ no documentation to cater to customer needs making the disbursement process faster and increasing customer reach. Prepayment of loans is also encouraged which is preferred by the new-age customers making it the best fit for the market needs.
Steps to apply for an instant loan:
- Select your lender: Select a lender from the market that suits your preferences. Currently, the market is loaded with many sellers who offer varying interest rates. It is therefore required to conduct a detailed study on the interest rates, hidden and processing charges applicable before applying for a loan.
- Evaluate your credit score: Before applying for the instant cash loan in 1 hour, analyse your credit score to understand the loan amount you would be eligible for, based on your past repayments. This helps in understanding the maximum loan amount that can be sanctioned and avoiding last-minute surprises.
- KYC Compliance: Post identification of your lender and decision on the loan amount, comply with KYC requirements by submitting the following documents:
- Aadhar card
- PAN Number
- Date of birth
- Gender
- Mobile number
- Employment status
- Salary slips/ income statement
- Bank statement for last 6 months
- Photographs
- Loan tenure:
Any lender would offer you various options with different interest rates, loan tenure and loan amounts. One needs to wisely choose the option that best suits their requirement and is cost beneficial to the customer.
- Verification of the documents:
All the details are to be submitted online by the customer, and the lender conducts a detailed study of all the documents, ensuring their authenticity of the same. Post verification, the loan amount is disbursed to the customer.
Note: One may opt for an instant cash loan with collateral security in case of a low/ no credit score. This gives a sense of confidence to the lender before loan approval and the loan amount may also be increased since the probability of recovery increases. You can opt for gold/ home/ car as collateral security against loan sanctions.
Wrapping up:
With the advent of technology, serving the immediate needs of the customer is the primary key to success for any financial service provider. To address this need, instant cash loans online have emerged– which are fast, hassle-free and can be availed with no/ minimum documentation to deal with your financial emergencies.
However, there might be some hidden/ processing charges attached to this, therefore you need to be vigilant while selecting your lending partner for the loan. There are advantages and disadvantages assigned to all the options available for loan sanction. One needs to carefully evaluate the option that best suits the requirement and opt for the same.
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