Whenever you have an unforeseen emergency or need money urgently, it can be tough to come up with the cash you need. However, instant loans have made getting the cash you need easier than ever. If you have a medical emergency or any other urgent need, an instant loan can help. This guide will walk you through the process of getting an instant loan, providing valuable insights and tips to help you get through it.
Understanding Instant Loans
An instant loan is a kind of credit that you can get in a very short time with less hassle. This loan lets borrowers receive cash instantly into their bank accounts with competitive interest rates. You can get instant loans if you need money for something urgent like student loans, making medical payments, making instant purchases, or getting married. Moreover, you can apply for an instant loan if you want to make a one-time payment for any need that you may have and repay it in affordable EMIs over a tenure that works for you.
Why Take Instant Personal Loans
There are a few reasons you might want to get an instant loan:
Medical Emergencies
In some cases, you might need urgent funds due to a medical emergency. It is possible that some medical procedures are not covered by insurance policies. Also, some diseases and treatments are not covered by all insurance plans. An instant personal loan can be extremely helpful when faced with a medical emergency. If you need medical expenses or therapies, you can use the loan money to pay for them.
Travelling for a vacation
Saving up regularly for vacations is a wise financial move since one can build a healthy amount to cover expenses. However, reserving flights and hotels in advance can help you save considerable money, thus reducing your travel budget. An instant personal loan can be taken out for such advance payments, which can be repaid with your savings later on.
Pay Off Credit Card Debt
Compared to credit card interest rates, personal loans offer relatively lower interest rates, in the range of 3% to 30%, compared to credit card interest rates (12%-24%). A low-interest personal loan may be a good option for paying off your credit card debt.
Wedding Expenses
Indians tend to spend a lot on wedding celebrations because marriage is such a big event. It is common for wedding expenses to exceed budgets due to a desire to celebrate extravagantly. To cover wedding costs, one may take out a personal loan, which can then be repaid in monthly payments. Nevertheless, being financially aware is a wise practice during celebrations.
A Step-By-Step Guide To Applying For An Instant Loan For Urgent Needs
The steps to getting an instant loan are as follows:
Step 1: Download the lender’s instant online app or visit their website.
Step 2: Go to the instant loans page.
Step 3: You can fill out the application if you’re an existing customer. New users need to register and then fill out an application.
Step 4: Fill in all the details and verify with an OTP via e-mail or mobile.
Step 5: Fill out your income details and KYC info.
Step 6: Choose how much you want to borrow.
Step 7: Upload the documents and submit the application.
Documents Required For Instant Loan
Check out the documents you’ll need before applying for an Instant Loan. During the application process for an Instant Loan, this set of documents might be required-
- Address proof (voter ID, passport, utility bills, etc.)
- Identity proof (PAN card, Aadhaar card, etc.)
- For salaried employees, salary slips from the last 3-6 months
- An income statement for a self-employed individual
- Bank statements for the last 3-6 months.
Instant Loans: What You Need To Know
Before you apply for an instant loan, here’s what you need to know:
High Credit Score
It’s easier to get approved if your credit score is high (preferably over 750). You’ll also get low-interest rates and favourable repayment terms if you have a good credit score.
Processing Fee
Most institutions charge a processing fee when they sanction a loan. Before applying, check the charges and decide.
Compare The Interest Rates Of Different Financial Institutions
Various lenders offer different interest rates, so it’s important to compare their rates. By doing so, you can make more efficient decisions based on their repayment capacity.
Easy EMI Repayments
In many platforms, instant loans are repaid through EMI payments, which let the borrower pay back the money slowly over time.
Minimal Paperwork
With quick loans, there’s no paperwork involved, and you can apply online from the comfort of your home.
Free Early Closure
In some cases, platforms also let you pay off the loan early, so you don’t have to pay any further interest.
Conclusion
If you’re facing unexpected expenses, instant loans are a great solution. Whatever you need, instant loans offer quick access to funds with competitive rates, whether it’s for medical emergencies, education costs, travel plans, or credit card debt. By following a step-by-step guide and using a user-friendly platform like the Fibe App, you can apply for loans online quickly.