What are the different types of Instant Loans?
There used to be a time when obtaining a loan was quite an arduous process. Even then, you didn't have any assurance of getting it. Many were forced to turn to shady loan sharks to get some much-needed credit.
Thankfully, those days are in the past. Obtaining a loan today is considerably easier and streamlined. Competitive plans ensure you are spoilt for choice when it comes to borrowing money.
When quick and effortless financing is the order of the day, instant loans can be quite helpful.
Especially for those times when a cause for unexpected expense crops up, we might not always be in possession of funds to pay for it. For such occasions, an instant loan is the need of the hour. They can be easily applied for online and are processed quickly, with minimal documentation and fast disbursement.
Instant Loan Eligibility Criteria
But you must be well-versed with the ways in which they work. This includes being aware of any eligibility requirements that are in place. Here are the eligibility criteria:
Credit Score: In order to obtain an instant personal loan at an affordable interest rate, a healthy credit score goes a long way. A credit score of over 750 is ideal for this.
Age: Meeting the age requirements set by the lender is imperative in order to be eligible for an instant personal loan. Depending on whether you're a student, salaried employee or a self-employed entrepreneur, there may be different age limits in place. So ensure you check out the age requirements stipulated by the concerned bank or NBFC from whom you're looking to borrow from.
Now, let's take a look at the different types of instant loans available:
Personal Loans: Offered by numerous banks and non-banking financial companies (NBFC), personal loans are by far the most widely availed unsecured loan when it comes to dealing with financial shortcomings. Your eligibility determines how high of an amount you can borrow. Compared to secured loans, the interest rates are usually on the steep side when it comes to personal loans. On the flip side, however, you get a flexible tenure and convenient repayment terms.
Short Term Personal Loans: A short-term personal (STPL) loan can be for an amount as low as Rs 1000 and are mainly being offered by digital lenders and NBFCs such as mPokket. It's a relatively nascent concept in India but catching on quickly among the youth in particular. It's a convenient solution to meet end-of-the-month cash crunches and unexpected expenses that may crop up. In order to avail an STPL, you can usually just apply online — usually through an app of the lender — then upload the necessary documents and the cash is usually disbursed straight to your bank account instantly.
Loan Against Credit Card: If you happen to be a credit card user, you could be eligible for a loan against your credit card. Your repayment history and credit card limit will determine your eligibility, of course, but once approved, funds are disbursed swiftly after minimal processing. If you wish to find out more, simply head over to your credit card provider's website.
Loans Against Savings and Insurance: If you have invested in small savings instruments such as fixed deposits, car insurance, and health insurance policies at your bank, you could be eligible to apply for a loan against savings and insurance, also known as a demand loan. It's offered by plenty of banks and NBFCs these days. Do note that your loan amount, which could go as high as 90 per cent of your savings value, will be determined by your policy's maturity value and repayment record as well.
Topup Loan: As the name indicates, topup loans let you avail extra funds on top of your existing loans. Since your personal details are already known to the lender, processing of the top-up loan is done quickly with a quick form fill-up.
Whether you're a student or salaried professional, when it comes to instant loans, you cannot go wrong with mPokket. We offer cash loan, easy loan, quick loan, and short term loans.
To begin, simply download the app and register by uploading a handful of documents. Post-approval, you can borrow instant personal loans of up to Rs. 20,000, depending on your credit score and repayment history. We credit the amount straight to your bank or Paytm account!