Want Quick Funds? Read This And Get Them
It is true what they say about nothing being permanent in life except change. You might be coasting along content with your life and the next second brings disastrous personal news. You must now scramble to gather the money needed to meet the emergency, so you empty your bank account and start asking your friends to lend you some money.
But wait – shouldn’t you take a simpler route and borrow a personal loan instead? You save money, time and effort when you do so, and it is the quickest way to get access to emergency funds. Read on to know why.
What is a personal loan?
A personal loan is a sum of money offered against your personal income and credit credentials. Hence, the name ‘personal loan’ – it is offered not against any physical security or collateral, but against a high credit score and income from a salaried job. When offering the quick loan, the lending institution does not ask for any collateral, but proceeds with the application after checking your source of income, credit score and repayment history, among other factors.
Thus, it is an unsecured loan product. Being an unsecured product, it is charged a higher rate of interest than other secured loan products like home loans, car loans, home renovation loans, etc. However, it has a shorter tenure –.
What are the benefits of taking a personal loan?
The personal or quick loan offers several benefits. We recommend taking the loan from a leading personal loan app, because they are much faster at processing the loan and more flexible in their terms as compared to traditional lenders. The most important benefits of borrowing the instant loan from an app are:
Minimal documentation. Unlike other loans like home loans, personal loans do not have reams of paperwork and several layers of checks before sanction. You must furnish just a few documents (personal ID proof, photo ID, residence proof, salary proof and bank statement) and these can be uploaded directly on the app after self-attestation. Not only do you save a lot of time while applying, but the hassle and accompanying stress associated with physical paperwork is virtually absent with instant loans. Besides, less documentation results in faster processing times.
Anybody can get it, provided…Personal loan apps are flexible about who they lend quick loans to, provided the applicant is an Indian national over 18 years of age, with a salaried job and a good credit score. This includes most people in its ambit, making the loan product accessible to almost everybody.
Fast approval times. Since the documentation for the instant loan is minimal and there is no physical security to check, lending institutions take less time to review the loan application and process the approval. However, traditional lenders like banks do take much longer to process and approve the loan than leading loan apps do. Not only do they take longer than apps, traditional lenders also insist on the paperwork and application to be submitted at the branch office along with the processing fee cheque. Meanwhile, you can quickly upload your documents on the app and pay the processing fee online. If everything is found correct, the app takes barely a few hours to approve the loan.
Quick disbursal. Personal loan apps are quick not only to process the loan application, but also to disburse the loan money. They take a few hours to approve the request (provided you have a good credit score and correct documents) and the money is disbursed to your account in a few minutes thereafter. This is a big advantage when you need the personal loan for a financial or medical emergency.
Foreclosure without extra charges. Most traditional lenders charge a foreclosure fee on the personal loan, if you repay it in full before tenure. However, leading loan apps do not charge such a fee and encourage you to foreclose the loan to become debt free quicker and increase your credit score.
Lower interest rates for repeat borrowing. Leading loan apps offer incentives to repeat customers (i.e. those borrowing a second or third personal loan from them) such as loyalty reward points and lower rate of interest. There may be incentives for referring friends as well.
How to get the quick loan for an emergency
Since you are faced with an emergency, you need to move quickly to get the funds you need. Install your preferred loan app on your smartphone (get it from the Google Play Store or Apple App Store) and finish setup as directed. After this –
Study the loan product in detail. Check information about interest rates, repayment terms, list of required documents, processing fees, late payment fees, etc.
Prepare the list of documents as per the offered list, and self-attest each. Upload the set with a selfie showing all your facial features.
Await approval from the app. Once the approval comes, the loan money is disbursed to your savings account in a few minutes. However, if your credit score is low and documentation is incorrect, the app may reject your loan request. You may reapply with a better credit score and/or correct set of documents after three months.
Once the loan money is in your account, you may withdraw it to use as you deem fit.
Repay the loan in a series of EMIs till the loan tenure is up, or opt to foreclose early by prepayment of larger amounts (other than the monthly EMI sum).
Conclusion
The article above illustrates the utility of a personal loan during a financial or medical emergency. It is easy and quick to procure the funds you need, provided you have a smartphone and a good lending app installed on it.
