A new tendency developed over the years, where the process of keeping the cash is not much in the liquid form. This arrangement of keeping the amount safe in some form of deposits is quite good unless the real need of liquid fund arises. And there come to the necessity of instant loan.
The instant loans can, in fact, be termed as a life savior means in case of medical emergencies, where having a cash fund is very crucial. Thanks to some of the banks who facilitate this type of loan and that too within 24 hours’ time.
Some of the lenders even release this type of loan in a paperless transaction. In a way, this is quite safe and secure and involves a neat and clear monetary transaction. No need to have immense criteria to be eligible for this loan process. Just the internet and mobile banking facilities are what it actually needs.
Instant Cash Loan:
What is it actually? Is it something that can be availed for every type of loan? Is it a secured or an unsecured one? If these are the questions bothering your mind, this informative article will be of great help.
So instant loan is a monetary transaction where a sort of agreement is formed between the lender and the borrower. The lender is usually a bank or a financial institution, having your cash deposits. It is similar to the normal loan in its structure, but the process involved is pretty simple.
While the regular loans are usually taken for large resources like buying a house, or car loans, education loans and bridging loans, instant loans, on the other hands are comparatively of a smaller amount and for a short period of time.
An example of Instant loan is of Home Credit India where it provides instant loan online to its customers in just 10 minutes. The process is easy, fast and paperless. There is no requirement of physical documents and you don’t need to stand in long bank queues for your loan approval. All this can be done sitting at your homes.
Set of Criterion:
The instantaneous approval of instant loan gives it a distinct status and makes the process quite hassle-free. But like any type of loans, the process of instant loan is based on a few criteria.
The borrower must be an employed one.
The salary or the remuneration received from the employer must be deposited in the concerned bank account.
Or, in absence of the second feature, there must be some liquid cash in the bank account and up to a certain given bar. Note here that, not all the financial institution approve the third set of criterion. So, if your bank doesn’t consider you to be eligible, you have nothing to say.
Instant loans are usually short term loans and are usually granted for a period of few weeks or months. The latest period can be of 6 months, within which the full amount is recovered by the banks. While some find this short term loan period as beneficial, people with financial problems may find it hard to cope with.
Well, the repayment period again varies from lenders to lenders. Some of the lenders may increase the time period of the loan depending upon the reasons that the borrower is providing. But it is always better to repay the loan amount as soon as possible to avoid the increase in the total amount, that is, compound interest plus principle.
Rate of Interest:
Unlike, normal loans, where the rate of interest is fixed and goes with par with the other banks, the case is different for instant loans. With the ease of getting the money, comes the higher rate of interest. This can be also looked upon as a disadvantage of this type of loan. Anyway, it is expected to have a higher rate of interest depending on its short term feature.
Instant loans can be of great help if the financial standards are managed well. Apart from the higher interest rates, the stability and the ease of this type of loan cannot be questioned in any case.