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.
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.
The types of instant loans are:
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.
Several credit card providers offer an instant loan against a credit card, which, in turn, depends on the credit score and payment history.
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 is one of India's most popular loans. This type of loan can be approved within a day.
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.
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
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.
The benefits of an instant loan are:
Nominal processing time
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.