The instant loans can be availed online either through the personal loan offers of traditional banks or from fintech firms. While personal loans from banks earlier took days or weeks to process, however now for existing customers, the net banking or mobile app facility ensures these can be procured speedily.
Where private banks are concerned, they offer select customers personal loans within few minutes. Many offer pre-approved loans to long-time customers with an excellent repayment record and healthy credit scores. If a prospective borrower has an operational bank account and fixed salary/income, the individual can apply for a personal loan. Besides regular KYC documents, no additional papers are required. Once approved, the disbursal will happen at the earliest on the same day. However still for new to bank customer, it takes some time, needs to undergo a rigid underwriting/approval process
However, new-age fintech entities are pros in disbursing instant loans within few minutes if an applicant provides all relevant info/documents. Be it legacy banks or new-age lenders, borrowers can check their instant loan eligibility online through the concerned portal. New age fintechs provide on the go loans with easy application process, customized underwriting/AI based decisioning, and digital paperwork
The interest rates on instant personal loans vary across lenders, depending on your credit score and repayment behaviour. If you have an ongoing personal loan with a lender, you could avail of an instant top-up loan on the existing amount. Again, there is minimal documentation and swift disbursal. High-risk customers can also get smaller loans to use as per the requirement and then pay back easily. This helps in building credit profile or improving the existing poor credit history.
Banks, NBFCs, and new-age lending platforms provide instant loans ranging from Rs 15,000 to Rs 10 lakh interest rate, depends on the customer’s risk profile and credit score.
Here are five top tips to boost the chances of approval for your instant loan online:
1. Maintain a Healthy Credit Score
A credit score of 750 and above is essential for your instant loan application’s approval. The credit score reflects your credit usage and repayment history. An excellent score indicates you make timely repayments and are a credit-worthy customer. Although customers with a lower credit score can still be offered an instant loan, the interest rates are higher. The higher the score, the greater your chances of approval on favourable terms.
2. Ascertain your Eligibility and Requirements before Applying
Different lenders have varying eligibility criteria. Check these to ensure you are eligible. Understand the personal loan amount you require and calculate the EMI you can repay comfortably while choosing the most suitable tenure. Personal loan calculators are available online, helping you understand the prospective EMIs for specific amounts and tenures. Never apply for more than what you need even if eligible.
3. Keep all Documents Ready to Upload Beforehand
All required documents such as bank statements, address and ID proof, photographs, etc. should be ready for uploading when you access the lender’s portal for an instant loan. Before applying, it makes sense to store these images on your device to save time. Thereby, the online loan application process can be completed without break within minutes. Some platforms also provide the facility to complete KYC verification through digital mode where your KYC details are fetched from original sources and you don’t need to provide any additional details. It is necessary that you provide correct details to verify through this process.
4. Read the Fine Print in Advance
Before digitally signing a loan agreement online for your instant loan, ascertain you are aware of all the terms and conditions as well as the charges. Thereby, you won’t encounter unpleasant surprises at a later stage.
5. Always Provide Accurate Information
Correct, factual information can increase the chances of approval on more favourable terms. But any false or inaccurate information will end in your application being rejected as online lenders will use multiple digital sources to verify the accuracy of details.