An instant personal loan can be a lifeline during financial emergencies. It is a quick way to access the required funds with minimal hassle. This unsecured loan is usually provided by various banks and financial institutions. It can be used to meet various financial obligations. This includes urgent hospitalisation, home renovations, travel, or debt consolidation. The speed of disbursement is what sets them apart from regular personal loans. With personal loans, you can get the amount needed within a few minutes or hours, depending on the lender.

Check Your Eligibility

Before applying, ensure you meet the eligibility criteria. While these vary by lender, common requirements include:

  • Age: Usually between 21 and 60 years
  • Income: A minimum monthly income as specified by the lender
  • Employment: Stable employment with a certain number of years of experience
  • CIBIL Score: A good CIBIL score of about 750 or more

Understand these criteria to avoid rejections. Check the complete list of requirements from your lender before applying.

Gather Necessary Documents

To speed up the process, have all required documents ready. Generally, you’ll need:

  • Identity Proof: Aadhaar card/PAN card/passport/driver’s licence
  • Address Proof: Utility bills/rental agreement/passport
  • Income Proof: Salary slips/bank statements/IT returns
  • Employment Proof: Offer letter or employment certificate

Having these documents ready beforehand ensures a smooth and quick application process. This reduces delays caused by incomplete documentation. Your lender may ask you to submit some additional documents at the time of application. Ensure to get a complete list of the requirements before you apply for the loan.

Choose the Right Lender

Different lenders offer various terms and conditions. Research and compare to find the one that suits your needs best. Consider factors like:

  • Interest Rates: Lower rates reduce the cost of your loan
  • Processing Fees: Look for lenders that offer lower processing and prepayment charges
  • Repayment Tenure: Flexible tenures can ease repayment
  • Customer Reviews: Check reviews for insights on customer service and satisfaction

Utilise online comparison tools to analyse different lenders based on these factors. Reading customer reviews can also provide insights into the lender’s service quality.

Calculate Your Loan Amount and EMI

Be clear about how much you need and how much you can afford to repay. Use online EMI calculators to understand the amount you need to pay each month to service the loan. Ensure that it fits in your budget. This step is crucial to avoid financial strain later.

Let’s assume your monthly income is ₹50,000 and can comfortably set aside ₹10,000 for EMI payments. Use this information to calculate the loan amount you can borrow accordingly. Consider your existing financial commitments and probable expenses before budgeting. This will help you find loan terms that suit your needs and preferences.

Apply Online

Most lenders enable you to apply for the loan digitally, which can speed up the process. Follow these steps to apply for an instant personal loan online:

  1. Visit the Lender’s Website: Navigate to the personal loan application section
  2. Fill Out the Application Form: Provide personal, financial, and employment details
  3. Upload Documents: Submit scanned copies of the required documents
  4. Submit the Application: Review all details before submitting

Applying for the loan online speeds up the process and enables you to apply from anywhere at any time. Ensure you provide accurate information to avoid delays in approval.

Await Verification

After submitting your application, the lender will verify your details. This might involve:

  • Credit Check: Assessing your credit score and history
  • Document Verification: Checking the authenticity of your submitted documents
  • Employment Verification: Contacting your employer to confirm your employment status

This step is crucial as it determines your creditworthiness and repayment capabilities. On the basis of this verification, your loan terms are determined.

Approval and Disbursement

Once verified, the lender will approve your loan. The time frame for this can vary but is usually quick for instant loans. On approval, you are asked to sign a digital loan agreement. After you have thoroughly read the terms and conditions, sign the agreement. Following this, the loan amount is transferred to your bank account, usually in a few hours. The quick disbursement makes instant personal loans ideal for emergencies.

Tips to Improve Your Approval Chances

To boost your chances of getting approved:

  • Maintain a Good Credit Score: Pay your dues on time and keep your credit utilisation low
  • Choose the Right Loan Amount: Borrow only what you need to avoid rejection.
  • Have a Stable Employment History: Long-term employment increases your credibility.
  • Maintain a low Debt-to-Income (DTI) Ratio: Ensure your existing debts don’t exceed a significant portion of your income

Additionally, consider consolidating any small debts before applying. This can help improve your CIBIL score, enhancing your loan eligibility.

Common Mistakes to Avoid

Avoid these common pitfalls:

  • Applying to Multiple Lenders Simultaneously: This can negatively impact your CIBIL score
  • Ignoring Fine Print: Always read the terms and conditions carefully
  • Overborrowing: Don’t take more than you need or can repay
  • Not Checking Eligibility: Apply only if you meet the lender’s criteria to avoid rejection

Many applicants overlook the importance of reading the fine print. This can lead to unexpected fees or unfavourable terms. Ensure you understand all conditions before committing.

Benefits of Instant Personal Loans

Instant personal loans offer quick access to funds, making them ideal for emergencies. These loans are collateral-free, allowing you to keep your assets secure. The application process is simple and convenient, often completed online. Additionally, the funds can be used for any personal need, providing great flexibility.

Managing Your Instant Personal Loan

Once you have received your loan, it’s essential to manage it wisely to avoid financial strain. Here are some tips:

  • Create a Repayment Plan: Ensure timely repayments to avoid penalties
  • Track Your Expenses: Monitor your spending to ensure you stay within your budget
  • Set Up Reminders: Use automatic payments and reminders to ensure you do not miss any EMI payments
  • Discuss with Your Lender: If you face any financial difficulties, discuss possible solutions

Manage your loan responsibly, maintain your CIBIL score and avoid future financial problems.

Securing an instant personal loan can be straightforward if you follow these tips. Start by understanding your needs and eligibility. Gather the necessary documents, and choose a suitable lender. Apply for an instant loan online and get access to the funds you need in no time. Stay informed and prepared. Before applying, check the various instant personal loans available to find an offer that suits your needs. On Bajaj Markets, an arm of Bajaj Finserv Direct Limited, you can choose from multiple loan offers. 

RELATED ARTICLESMORE FROM AUTHOR