Instant loan: urgently need funds? Here’s how to get an instant loan online
Instant loans can be obtained online through personal loan offers from traditional banks or financial technology companies. While personal loans from banks used to take days or weeks to process, now for existing customers the online banking or mobile app ensures these can be obtained quickly.
As for private banks, they offer personal loans to a select clientele in a few minutes. Many offer pre-approved loans to long-time clients with excellent repayment records and healthy credit scores. If a potential borrower has a working bank account and a fixed salary / income, they can apply for a personal loan. Besides the regular KYC documents, no additional documents are required. Once approved, disbursement will take place no earlier than the same day. However, still for new bank customers it takes a while, must go through a rigid subscription / approval process
However, new-age fintech entities are pros at disbursing instant loans within minutes if an applicant provides all the relevant information / documents. From traditional banks to new age lenders, borrowers can check their instant loan eligibility online through the relevant portal. New Age Fintechs Deliver On-The-Go Loans with Simple Application Process, Personalized Underwriting / AI-Based Decisions, and Digital Documents
Interest rates on instant personal loans vary among lenders, depending on your credit rating and repayment behavior. If you have an outstanding personal loan from a lender, you can qualify for an instant top-up loan on the existing amount. Again, there is minimal documentation and quick disbursement. High-risk clients can also get smaller loans to use as needed and then repay them easily. It helps build a credit profile or improve existing bad credit history.
Banks, NBFCs and new-age lending platforms offer instant loans ranging from Rs 15,000 to Rs 10 lakh, depending on the risk profile and credit rating of the client.
Here are five tips to increase the chances of your instant loan approval online:
1. Maintain a healthy credit rating
A credit score of 750 and above is essential for the approval of your instant loan application. The credit score reflects your credit usage and repayment history. A great score indicates that you are making timely refunds and that you are a creditworthy customer. Although customers with a lower credit score may still be offered an instant loan, the interest rates are higher. The higher the score, the greater your chances of getting approved on favorable terms.
2. Check your eligibility and requirements before applying
Different lenders have different eligibility criteria. Check them to make sure you are eligible. Understand the amount of personal loan you need and calculate the EMI that you can repay comfortably while choosing the most suitable term. Personal loan calculators are available online, helping you understand potential EMIs for specific amounts and terms. Never ask for more than what you need, even if you are eligible.
3. Keep all documents ready to be uploaded beforehand
All required documents such as bank statements, proof of address and identity, photographs, etc. must be ready to download when you access the lender portal for instant loan. Before applying, it makes sense to store these images on your device to save time. Thus, the online loan application process can be completed uninterrupted within minutes. Some platforms also offer the option to complete KYC verification via digital mode where your KYC details are fetched from the original sources and you do not need to provide any additional details. It is necessary that you provide correct information to verify throughout this process.
4. Read the fine print ahead of time
Before digitally signing an online loan agreement for your instant loan, make sure you know all the terms and conditions as well as the fees. Thus, you will not encounter any unpleasant surprises afterwards.
5. Always provide accurate information
Correct factual information can increase the chances of approval on more favorable terms. But any false or inaccurate information will result in your application being rejected as online lenders will use multiple digital sources to verify details are correct.