Instant loans can be obtained online through personal loan offers from traditional banks or fintech companies. Whereas personal loans from banks used to take days or weeks to process, but now for existing customers, online banking or mobile app ensures that these can be obtained quickly.
As for private banks, they offer selected customers personal loans in minutes. Many offer pre-approved loans to long-time customers with excellent repayment records and healthy credit scores. If a potential borrower has a working bank account and a fixed salary/income, they can apply for a personal loan. Apart from the regular KYC documents, no additional documents are required. Once approved, the disbursement will take place at the earliest the same day. However, again for new bank customers, it is time consuming, has to go through a rigid underwriting/approval process
However, new era fintech entities are pros in disbursing instant loans within minutes if an applicant provides all relevant information/documents. Be it legacy banks or new-age lenders, borrowers can check their instant loan eligibility online through the relevant portal. New era fintechs provide loans on the go with a simple application process, personalized underwriting/AI-based decision making and digital documents
Interest rates on instant personal loans vary from lender to lender, depending on your credit score and repayment behavior. If you have an outstanding personal loan with a lender, you can qualify for an instant top-up loan on the existing amount. Again, there is minimal documentation and fast disbursement. High-risk customers can also get smaller loans to use as needed and then repay easily. It helps to build a credit profile or improve existing bad credit history.
Banks, NBFCs and new-age lending platforms offer instant loans ranging from Rs 15,000 to Rs 10 lakh, depending on the risk profile and credit rating of the customer.
Here are five tips to increase the chances of your instant loan being approved online:
1. Maintain a healthy credit rating
A credit score of 750 and above is essential for the approval of your instant loan application. Credit score reflects your credit usage and repayment history. An excellent score indicates that you make timely repayments and that you are a creditworthy customer. Although customers with a lower credit score can still be offered an instant loan, the interest rates are higher. The higher the score, the more likely you are to be approved on favorable terms.
2. Check your eligibility and requirements before applying
Different lenders have different eligibility criteria. Check them out to make sure you’re eligible. Understand the personal loan amount you need and calculate the EMI you can comfortably repay while choosing the most appropriate term. Personal loan calculators are available online, helping you understand potential EMIs for specific amounts and terms. Never ask for more than you need, even if you are eligible.
3. Keep all documents ready to upload in advance
All required documents such as bank statements, proof of address and identity, photographs, etc. should be ready to download when you access the lender portal for instant loan. Before applying, it makes sense to store these images on your device to save time. Thus, the online loan application process can be completed seamlessly within minutes. Some platforms also provide the option to complete KYC verification through the digital mode where your KYC details are fetched from original sources and you do not need to provide any additional details. It is necessary that you provide correct information to verify throughout this process.
4. Read the fine print ahead of time
Before digitally signing an online loan agreement for your instant loan, make sure you know all the terms and conditions as well as the fees. This way, you will not encounter any unpleasant surprises afterwards.
5. Always provide accurate information
Correct and factual information can increase the chances of approval on more favorable terms. But any false or inaccurate information will result in your application being rejected as online lenders will use multiple digital sources to verify the accuracy of the details.