Instant Loan In India
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 an instant loan.
The instant loans in India 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 NBFC/Banks who facilitate this type of fast loan and that too within 24 hours’ time.
Instant Loan from Home Credit release this type of quick 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.
Why Instant Loan?
So instant loan in India 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 hand, are comparatively of a smaller amount and for a short period of time.
An example of an Instant loan is of Home Credit India where it provides instant loan approval to its customers in just 5 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 loans gives it a distinct status and makes the process quite hassle-free. But like any type of loan, 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 certainly given bar. Note here that, not all the financial institutions approve the third set of criteria. So, if your bank doesn’t consider you to be eligible, you have nothing to say.
Read More: How to Apply Online for an Instant loan?
Instant loans are usually short term loans and are usually granted for a period of a 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.