Instant Cash Loans have become the new synonym for personal loans. As a popular type of personal loan, the instant loan has taken its name owing to its attribute of reaching beneficiary accounts in super quick time. In all cases where applicants apply for instant cash from lenders, they can receive immediate approval based on their credit outlook.
A point that cannot be ignored is the popularity that instant online loans have gained in today’s highly competitive market. Owing to some fundamental characteristics, the demand for instant loans – both instant small loans as well as larger loans, has significantly risen (directly of course contributing to their upsurge in popularity). Let’s go ahead and look at how this form of credit has become so widespread in the Indian market today.
Instant cash loans online are available quite easily today, thanks to the presence of multiple lenders in the market, each fairly capturing a piece of the enormous pie. It is mostly owing to the demand for this type of loans that the number of lenders has risen in the market today. There are several instant cash loan direct lenders that applicants can approach and get their amounts in absolutely no time.
Instant Loan Approval
One of the most impressive features of instant personal finance is the instant approval that applicants get. After filling out details, lenders obtain credit information from the bureau and based on the applicant’s credit profile, he/she will receive instant approval. If certain parameters in the customer’s credit profile doesn’t meet the lender’s internal credit norms, the applicant will instantly be given information on rejection of his/her loan application.
Same day disbursals
Same day disbursals are another reason for these loans to rank high in the popularity quotient. After receiving instant approval and submitting the KYC and income documents, a final loan offer is sent to the applicant, following which the loan amount is disbursed on the very same day. This aspect is particularly helpful when applicants are dealing with an emergency of sorts. So quite clearly, in the midst of an emergency, instant loans have been the go-to saviours without doubt.
Gone are the days when applicants had to submit a large heap of paperwork as part of the loan process. Lenders who are active in the “instant loan” space have stitched a system that does not require abundant paperwork as part of the application process. This is another crucial aspect that has helped this type of finance to become more popular among potential customers. As such, things are way easier to deal with in a digitised world, isn’t it?
A wide range of amounts
Let’s say you are on the look-out for personal finance for a list of reasons. When you zero-in on a lender for your loan, you can choose a loan amount of your choice – this range includes amounts that are as low as Rs. 25,000, stretching up to amounts as high as Rs. 25 Lakhs. Depending on your financial requirement, you can pick a loan amount. However, note that the approved amount will depend on your monthly income, your credit score, and your repayment patterns in the past.
Affordable Interest Rates
The interest rates on this type of loans are affordable, and more or less similar to rates offered by traditional lending institutions such as banks. Even though there are several institutions that claim to offer the lowest interest rates in the market, the interest rates are dependent on the applicant’s credit score and credit repayment history. There are many Fintech Lenders in the market that offer instant loans to both salaried and self-employed individuals at the most affordable rates in the market.
Personal finance for low credit scores
Low credit scores can often come in the way of loan approval. As instant small cash loans are a type of personal loan and personal loans are unsecured (not requiring collateral), the credit score is perhaps the most dominant parameter that gives creditors an idea of how an individual has handled his/her credit in the past.
As the market has tremendously evolved in the recent past, there are instant cash loan direct lenders that offer loans even to individuals with low credit scores. While such is the case, most lending institutions, however, do not entertain profiles with instances of defaults over the last 12 months.
Qbera, a lending Fintech company that offers instant cash loans online to salaried individuals, considers profiles with a minimum credit score of 600.