It is a well-known fact that the instant loan segment in India has gained massive popularity in recent times. An instant loan is just a personal loan that can be availed instantly. It can be extremely helpful in raising quick cash. The instant loan sector largely caters to the financial needs of regular people in our country. In today’s time, there are various online lenders that provide instant loans. Minimal documentation and a hassle-free application process are added advantages of availing an instant loan. Some of the other features of an instant loan are highlighted below:
A few years ago, availing a personal loan was a tedious process. In order to receive a loan that fulfilled all the requirements, borrowers had to visit a number of bank officials and compare the deals offered by them. In addition to that, they had to bear lengthy paperwork to get approval for the loan. Nowadays, with the help of digitization, borrowers can compare various loan offers online and settle for the one that best suits their needs. The application process has become completely hassle-free and the loan amount is disbursed instantly post-approval.
Easy repayment process
Instant loans have easy repayment process. Though the tenure of an instant loan is not too long, it has affordable EMI options. Hence, it has become easier to repay these loans, thereby attracting more and more people to choose it as a feasible option.
Reasonable interest rates
Interest rate is one of the major factors that you should keep in mind while availing any kind of a loan. Lower the interest rate, lower is the cost of borrowing in the long run. Nowadays, with the help of leading Non-Banking Financial Companies, it is possible to avail instant loans at the most competitive interest rates. Therefore, the biggest problems that personal loans posed, has been successfully resolved.
The eligibility criteria for an instant loan varies from one financial institution to another. However, most loan providers have lenient eligibility criteria for instant loans. Some of the most common parameters are mentioned below:
- You must be an Indian resident
- Minimum 21 years of age
- You must have an Indian bank account
- You must a valid Indian ID proof
Other alternatives to instant loans are payday loans. These are small, short-term loans given to individuals looking for money until their salary arrives. However, the interest rates on these loans depend on the borrower’s profile and are surprisingly high in most cases.
A few years ago, people were very hesitant in taking loans as there was a huge stigma attached to it. However, with the arrival of digitization and increased online lenders, people are willing to explore new options to avail a loan. As a result of the growing popularity of instant loans, the future for the instant loan segment in India seems to be quite promising.
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