Instant Cash Loans in India: What to Check Before Applying Online

A few years ago, the loan process was very complicated. You have to visit the physical branch of the bank with documents. You need to wait in line and submit the application. Even the approval process used to take many days.

But with technology, things have changed. This has given rise to instant cash loans in India. This requires minimal documentation and offers fast disbursal. You can apply for this loan from the comfort of your home, and there is no need for a physical visit.

Easy availability doesn’t mean you should be careless in borrowing. There are certain things you should keep in mind while applying for instant cash loans online. In this blog, we will study the same.

What is an Instant Cash Loan?

An instant cash loan is a short-term personal loan that requires minimal documentation and is processed quickly. It is a collateral-free loan, so you don’t have to provide any security. It is helpful to borrowers in dealing with emergency expenses like car repair, medical emergency, unexpected bill etc.

Why do people opt for Instant Cash Loans?

Here are some main reasons why people opt for Instant Cash Loans: -

• Emergency Financial Needs

One of the prime reasons people opt for instant cash loans is emergency situations. Medical emergencies, urgent home repairs, or unexpected travel are some situations which require immediate funds. In such situations, instant Cash Loans are very helpful.

• Faster Processing

Instant cash loans are also preferred due to their speedy process. As the entire process is digital, the loan is approved within a few minutes.

• Minimal Documentation

Not many documents are required for loan processing. Majority of lenders just ask for basic KYC documents. There is no lengthy paperwork. This makes an instant cash loan very attractive for borrowers.

• No Collateral Needed

These loans are unsecured, hence there is no need for collateral. So those borrowers who don’t have enough assets to pledge can opt for this loan.

• Short-term Cash Flow

The approval and disbursement are very fast.  Hence, people who have temporary cash shortages prefer instant loans to bridge short-term financial needs.

Things to Check before Applying

Here are certain things that you need to check before applying for Instant Cash Loans: -

• Loan Amount

Determine the loan amount you need. This depends a lot on your financial needs and lender terms and conditions. So, before you apply for an instant cash loan, assess your financial needs to decide how much loan amount you actually need. And only borrow as much as you can repay without much burden.

• Credit Score

A good credit score can help you get a loan at better terms. Hence, before you apply for an instant cash loan, check your credit score. Try to keep the score high. A credit score of 750 or above is considered good enough. If you don’t have a good score, then improve the score and then apply for a loan.

• Eligibility Criteria

Each lender has different eligibility criteria. So, before you apply for a loan, check if you fulfil the eligibility criteria of the lender. Do note that if you don’t fulfil the eligibility criteria, then the lender will reject your loan. Hence, only apply for a loan where you meet the eligibility criteria.

• Interest Rate

The interest rate of your loan will determine how much amount you will pay above the principal amount. The lower the interest rate, the less you spend paying interest on your loan. Hence, you shall conduct proper research and compare the interest rate offered by various lenders.

• Repayment Flexibility

Repaying the loan shall not feel like a burden. A good lender will always offer convenient tenures, easy EMIs, and even a prepayment option if you want to close your loan early. Hence, before opting for loan do check with the lender about this.

• Transparency of Terms

Many times, lender hide certain details from borrower and later on borrower have to face the consequences of this. Hence, before you accept the loan, do check all key details like APR, EMI Schedule, due dates, and penalties. A genuine lender will make all things clear in advance.

• Additional Charges

Do check about any kind of additional fees charged by the lender, like application or processing fees, late payment fees, prepayment fees, etc. This shall not become a financial burden for you. It shall be minimum and not too high.

• Customer Support

What if you need any help after the loan disbursal? In such a case, you will need customer support. Check if the lender has a strong support team in case you have any issue in loan repayment. It’s better to go for a lender who provides email, chat and phone support 24*7.

Conclusion

Gone are the days when you have to wait in long queues for a personal loan. The fintech lending has given rise to instant cash loans. These are modern loans that are processed online. It requires minimal documentation and takes a few hours to get disbursed.

One should be careful before applying for the instant loan. You shall only borrow for the amount as per your financial needs. Do check your eligibility and credit score. And always prefer lenders who are transparent and don’t hide anything.