Instant Loan Meaning: Types and Application

Instant loans have turned into a hot commodity these days. It is a type of personal loan that is taken quickly and doesn't require much documentation and a high credit score, which is easier to obtain than a traditional loan. Let's discuss the instant loan meaning, types, application process, etc.

Instant Loan Meaning

The instant loan meaning can be surmised in a simple sentence: a loan that can be obtained instantly with minimal documentation and at a comparatively lower credit score. However, one must weigh all the factors like interest rate on personal loan before making a decision.

Since we have discussed instant loan meaning, let's see how many types of instant personal loans there are.

Types of Instant Loans

The types of instant loans are:

Top-up Loan:

As the name implies, a top-up loan can be obtained on an existing loan. It includes home loans, car loans, etc. The process is faster and easier since all the necessary formalities are already done.

Loan Against Credit Cards:

Several credit card providers offer an instant loan against a credit card, which, in turn, depends on the credit score and payment history.

Loan Against Savings and Insurance:

This instant loan is obtained against savings that include FD, NSC, or any insurance. In case of a good repayment history, you can get a loan at almost 90% of your maturity value.

Marriage Loan:

Marriage loan is one of India's most popular loans. This type of loan can be approved within a day.

Travel Loan:

Looking to travel to your dream destination? You can now get a travel loan. You can easily avail of one with minimal documentation and at a faster speed.

After learning about instant loan meaning and its types, let's examine its application process.

Instant Loan Application Process

To apply for instant personal loan:

• Visit the lending institution's site and click on 'Apply Now'

• Enter the mobile number and then the OTP

• Enter PAN details

• Enter monthly income

• Enter KYC details

• Take a selfie

• Enter the account number you want your loan to be credited

• Enter company name

• Enter your work email address

• Set-EMI EMI auto repayment

• Review and accept the final loan offer

• Complete E-sign

• Your loan amount will be credited to the provided account

After understanding the meaning and the instant loan application process, let's discuss the benefits of the instant personal loan.

Benefits of Instant Personal Loan

The benefits of an instant loan are:

• Paperless method

• Zero collateral

• Instant disbursement

• Nominal processing time

• Flexible tenure

• Customizable loan amount

Instant loans are quite beneficial when there is an urgent need for funds, but one must understand the instant loan meaning and the risks that come with it to avoid falling prey to a debt trap.