The reasons why an instant personal loan is the best finance tool you could count on

Financial emergencies can be notorious sometime and disrupt your financial planning. Most people stuck in such dilemma find it worth to opt for loan options to manage urgent expenses like paying a medical bill or to consolidate their debt. Thankfully, there are many public and private and Non-Bank Finance Companies (NBFC) provides you with instant personal loan options to pick the one that meets your needs.

Indeed you might have thought to opt for other loan products which might take some time to process but eventually fulfill your financial crunch. Or you can give it a second thought to what experts suggest and opt for an instant personal loan. The following pointers will pretty much explain why such personal loans are regarded as the best financial aid option.

Why personal loan is instant!

The main reasons why most people are reluctant to apply for any type of loan is the paperwork one has to follow. On the principle, an instant personal loan is an unsecured loan product, which means you don’t need to provide any collateral security to apply for such a loan. This can save you from a lot of hassles or collecting and submitting the documents about your assets. As long as you fit the eligibility criteria, you are good to apply for a loan.

How fast it can be?

Well, it depends on the kind of loan lender you choose to apply for an instant personal loan! Most major public and private banks take at least 2-3days to process your application and 6-7 working days to disburse the loan amount. If you follow the online process, some NBFCs take an hour or two to approve your loan application and 2-3 working days for the disbursement! The interest rates offered on personal loans by each loan lenders is somewhat similar and yet varies to some degree. Indeed, invalid documentation could delay the otherwise instant process, hence it is wise to prepare documentation as per the list is given by the loan lender.

Good credit score and its benefit:

You can reap some benefits like reduction in the rate of interest on an instant personal loan or ability to quote maximum loan amount if you have a good credit score to your title. Although the norms on how much minimum CIBIL score you need to qualify is different from one lender to another, 750 is the safe score to keep. And if your score is lower than that, you should start repaying previous loans and follow a regular repayment cycle.

Eligibility criteria and documents needed!

In terms of an unsecured loan, your ability to pay back the loan amount is being considered on the basis of your net monthly income and its proof. Other eligibility norms like being a citizen of India and applicant must be 18years or above. Although the norms for the list of the required document might vary from one lender to another! But in most case, the following documents will be asked by the lender for the application purpose.

·         Identity proof

·         Address proof

·         Passport, PAN card, Bank verification letter as a signature proof

·         Age proof

·         Employ ID as employment proof

·         Appointment letter, Form 16, 1-year-old salary slip as from a current employer or promotion letter, transfer or confirmation letters from the previous employer

·         ITR and complete audited financials in case you are a self-employed person

·         Bank statement to state salary credited for the last 3 months.

If you choose to follow the online process you needed to store a digitally scanned copy of each document to upload on the online instant personal loan application.