When you require a large sum of money to pay for your desperate expenses, an instant loan can be a very useful financial tool. An instant loan gives you instant cash to pay for an emergency or discretionary expenses. You could use it to pay a medical bill or fund your college fees, or you could use it to finance a home renovation or a vacation.
Since instant loans fall under the category of personal loans — there are no limitations on how you can use the funds and that’s what makes these loans special. Even if it’s a discretionary expenditure, you are free to utilise the money however you like.
There’s a catch though: you need to be eligible to apply for these loans. This eligibility requirement is set by the lender or the bank. Hence it varies from lender to lender, and bank to bank. Banks and lenders evaluate your loan application by evaluating factors like your income, credit score, bank statements, etc.
That said, online lenders have made these loans very accessible for most people. So, let’s look at some useful tips on how you can get an instant loan.
Tips to get an Instant Personal Loan
Have a high credit score: Generally, lenders determine your creditworthiness by assessing your credit score. This score indicates whether you consistently pay your obligations on time, such as credit card balances and prior loan EMIs. Your credit score will drop if you don’t make your EMI/loan payments or credit card payments on time, which will have an impact on your ability to receive a personal loan.
Before issuing a personal loan, banks and lending organisations often require a minimum credit score. As a result, if your credit score is low, you must make sure that you settle your EMIs & credit card bills on time. Your credit score will stay high if you pay your bills on time.
Maintain a good bank balance: Keep a healthy balance in your bank account because lending companies typically request your most recent six months’ worth of bank statements. Your loan is less likely to get approved for a personal loan if your costs are higher than your income. Your bank statements provide the lender with information about your expenditure and savings patterns, thereby assisting the lender assess your ability to repay the loan.
Show distinct sources of income: A lending organisation will typically need bank statements from the last six months or paychecks to verify whether you have enough income to pay back the loan. If you have many sources of revenue, you can present the lender with all the necessary paperwork, which will qualify you for quick loan approval.
Ensure that you meet the necessary requirements: You must determine whether you meet the requirements for a loan application before submitting an online instant loan application. This requires some research and googling on your part. If you research well, you can find yourself a lender who may lend loans solely on income and may not evaluate your credit score.
For example, Fibe’s eligibility requirements are as follows:
- You must be at least 21 years old and not older than 55.
- You must be a resident of India.
- You need KYC documents in order to get instant approval. (Driver’s licence, Pan card, Aadhar, etc.)
- You must be a salaried employee with a monthly income of Rs. 18000 in metro cities like Mumbai, and Kolkata to name a few, or Rs. 15000 in non-metro areas.
- You must present proof of other income sources if you are self-employed.
Consider opting for online lenders: We have moved past the times when one had to stand in queues to apply for loans. By selecting a reliable online lender that runs on the latest technological infrastructure, you can save a lot of time. You will unlikely be asked to submit physical papers and you can instantly apply for a loan using their instant loan app.
Use a personal loan EMI calculator: Before submitting an application for a loan to handle an unexpected emergency, consider using a personal loan EMI calculator to estimate your monthly EMIs. Calculating your monthly EMIs will give you a clear indication of how much you are obligated to pay each month for your EMI payments.
To conclude, those were some handy tips to consider, when shopping for an instant loan online. You tick the boxes above, and you easily be able to apply for an instant loan. If you happen to be a first-time borrower, you probably do not even have a credit score. So, in such a case, research well and find yourself a lending firm that offers credit and loans based on salary rather than credit score.