What is an instant cash loan?
An Instant Cash Loan is a short-term loan that is provided to a borrower from lenders like banks and NBFCs. It is an ideal way to get quick cash – as the term instant suggests, these loans are disbursed in super-quick time. Also, these are unsecured loans – which means that there is no need to pledge any kind of asset with the lender. This fact also increases the risk factor for such loans and pushes interest rates to be higher than secured loans.
The instant cash loan is an ideal solution to pay for a string of expenses. Better yet, these loans are extremely flexible and can be repaid through flexible tenure options that lenders provide. Usually, tenures for these types of loans range from 6 months to 60 months. You can manage home renovations and upgradations or buy a second- hand car or bike with it. An emergency medical bill can be footed, or these loans can be used to plan a short vacation. The flexibility is one of the points why cash loans are in significant demand these days.
Although they enjoy high demand, you must be prudent while availing an instant cash loan. Here are some things you should know about when you apply for one.
- Do take care while choosing the lender. There are many options and diverse benefits and offers, so select one that is best suited for your need.
- Do basic research before applying for a loan. All the lenders will do a hard pull of your credit score and thereby bring down your rating. So take a careful look at criteria and feasibility before applying with a select lender.
- Check to make sure that the EMIs are manageable on a monthly basis. The interest rate and tenure should be ideal to your need and repayment capacity.
- Carefully read the loan documents for extra charges and the fore closure rules. Processing fee, late payment charges, and foreclosure charges are present and do have an impact on the overall effectiveness of the loan. read and understand these terms before finalizing the loan.
- Be prudent and take an insurance cover on your loan. Life is unpredictable and in case of an eventuality, the insurance company will payout the amount and save your family from a sudden monetary burden.
How to apply for an instant cash loan?
With the presence of many Fintechs in the lending space, the process of applying for a loan is completely digitized. Here are some steps to get you started-
- Visit the lender’s website or mobile app if the lender has one.
- Personal and professional details in the application form should be filled, after selecting the loan amount and purpose.
- Check out the documents required which typically includes your income, residence and identity documents. The bank statements can be uploaded online using your netbanking credentials.
- Lenders use the information about you and pass it through advanced risk assessment algorithms to determine your eligibility and loan amount.
- After reviewing the credit score a customized loan offer is made.
- Hard copies of documents such as Aadhar card and PAN card are collected.
- After you accept the final offer, your amount will be disbursed within 24-48 hours.