Instant Personal Loan Providers in India: Things to Know

A lot of people find it challenging to make ends meet every month. High inflation, stagnant salaries, and drastic ‘lifestyle’ changes could be the culprits, not to forget the ease of borrowing instant cash loans these days.

Commonly called as Personal Loans, the credit is approved based on 3 important criteria: the income stability of the applicant, the credit score, and the identity proof.

It is certainly easier for salaried individuals to qualify for a Personal Loan. For, their monthly income credits to the banks regularly and they carry salary slips. The personal loan providers need to check proof of monthly salary. This is why they ask for payslips and the bank statement to validate your income.

The identity proof includes Aadhar Card, Passport, and Driver’s License.

Lastly, you need a Good Credit Score. Even if an individual takes home a 6 figure salary, and has been residing at the same place for decades, his request for a Personal Loan can be denied if the Credit Score is low. The CIBIL Score tells the creditworthiness of the individual. For example, a credit score above 700 is considered good, and above 750 is deemed healthy. A low Credit Score thus indicates that the person may not be worthy of gaining trust for loan repayment. A high score, on the other hand, reflects that the person has historically paid back his dues, and thus, is trustworthy to lend.

Gone are the days when the Personal Loan processing took weeks to process. Today, it is easy to get Personal Loans within a couple of days. A few banks claim to process Personal Loans in 3 hours. All you need to do is to submit the documents on time to the banks and get the loan amount deposited to your bank account.

How to Get Personal Loan Really Fast?

Do you own a Salary Account with the top-notch banks like ICICI, HDFC, Axis, etc.? Most of the banks these days offer a pre-approved loan, based on the Salary Account. If you are a loyal customer for years, the bank would send offers of pre-approved credit in your inbox. You would just be required to follow the link sent by the bank and share data as required. In a matter of a few seconds, the loan amount is sanctioned & disbursed, in many cases.

It is beneficial for a borrower to get the money that fast! But how does this happen? It’s simple. Banks have all the documents verified for their existing customers. They do not require a salary slip, where salary is already credited to their own bank’s account. There is no need to verify anything. This means, easy eligibility, and if your financial obligations are low, there are simply no hassles to reject your loan request.

However, this does not mean that your request for the increased amount will be approved too. Only the Pre-Approved Personal Loan Offer is available as an instant loan.

Apart from the leading banks, you can also apply for small instant loans from various apps based lenders. Here is the list:

1. MoneyTap

2. Early Salary

3. Cashe

4. Payme India

5. Qbera

6. India Bulls Dhani

This is a small list from the ocean of opportunities.

How do they work?

The user needs to input the required fields. These apps take a few minutes to determine creditworthiness. Your PAN number and PAN card copy need to be shared. You should also provide proof of address as images, and the salary slip should be uploaded. Your bank account statement in PDF format is also required. The PDF format ensures there is no fudging done. Your PAN number helps in finding the credit score, which is the initial step to find the eligibility. When your credit score is above 720, and if your monthly obligations are low, the apps let you get the loan instantly.

In spite of being eligible in the financial front, your loan may get rejected if you reside at a location that is not listed among areas approved by the lender for the same.

You need to be aware that instant personal loan providers can lend only smaller amount of money, as compared to the bank offers. When you try to get a loan from the Indiabulls app, you can get up to 15 Lakh, while MoneyTap will offer up to 5 Lakh. Credy can offer only 1 Lakh. You need to choose the lender, based on your needs. The rate of interest charged is higher than that of banks. While the banks levy around 12% p.a as interest rate, the modern day app based lenders may levy rate up to 24% p.a. This is because they incur higher risks by offering fast loan with low checks. They hardly engage in physical verification. They trust the documents you provide, and of course, do some background verification. As the risk of not getting the money back is higher, your rate of interest is higher.

Also, instant loan providers can be very aggressive when you miss a single payment. Remember, they have got access to your contacts and other apps on the phone. This is because even while you install the app, they ask for permissions. You cannot deny them these permissions if you need to get the loan. Otherwise, the app wouldn’t be installed. Your friends and other people in phone contact list may get calls, in case you don’t make a payment on time.

Apart from this, you should also know that the loan tenure is very low. Credy offers tenure of 1 year, while Early Salary gives you 3 months tenure to pay back the loan. They are modernized versions of PayDay loans popular in western countries. When trying to get instant loans, keep all these in mind. There is no doubt they are saviours in times of emergency, but you need to know how to handle them right.