Managing urgent expenses
can be challenging without financial support. In such situations, an instant
personal loan can be useful. In addition to the availability of various loan providers,
digital apps have simplified the loan application process by increasing the
processing and approval speed. Personal loan EMI calculators are tools provided
by such apps that further assist in planning repayment. This article highlights
the key benefits of applying for an instant personal loan.
Understanding
the Benefits of an Instant Personal Loan
An instant personal loan is convenient and flexible because of the benefits it provides. Some of
the benefits are as follows:
Swift Approval and Disbursal of the Required Amount
One of the key features of
a personal loan is its processing speed. Lenders may also offer pre-approved
loans based on the applicant’s credit history. Once the details are verified
and the lender eligibility criteria are met, the loan can be disbursed within
hours. This feature becomes necessary during financial emergencies.
No Collateral Requirement
Unlike home or vehicle
loans that require collateral, applicants may not be asked to provide assets
collateral. An instant personal loan thus becomes accessible to salaried and
self-employed individuals who may not have high-value assets. The loan approval
is based on your income, credit score and repayment history and other
eligibility criteria that could differ among various lenders.
Customised Loan Offers
The banks may offer loan
offers according to the financial behaviour, transaction history and credit
score of the borrower, relevant to his repayment ability. If one has a
financial history with the bank, they may receive special limits or offers.
Flexible Loan Amount and Tenure
Comparing offers provided
by various lenders allows applicants to choose a loan amount and tenure that
aligns with their financial needs. Additionally, choosing the right amount is
necessary to avoid over borrowing. Using available tools like a personal loan EMI calculator can help the applicant to calculate their
monthly repayment amount and align it with their monthly expenses.
Minimal Documentation
While applying for an
online personal loan, applicants need to provide basic documents for identity
proof, address proof, income proof, and bank statements. Online verification of
these documents speeds up the verification process and reduces manual errors
and delays.
Balance Transfer and Top-Up Facility
Lenders may provide the
facility to transfer an existing loan to another lender who offers favourable
terms. This may assist the individual in reducing their interest. On the other
hand, the top-up features allow the applicant to borrow additional capital
without applying for a new loan. However, having a good repayment record with
the lender is crucial for being eligible for the top-up feature.
Flexible Usage
Another advantage with
personal loans is that the funds acquired can be used for any financial needs,
such as travel, education or medical treatment. This may give preference in
choosing personal loans over other types of loans that restrict their capital
usage for a particular use case, like car loans or home loans.
Prepayment and Foreclosure
Prepayment of the loan
amount helps the applicant reduce the overall interest cost. Some lenders may
allow partial or full repayment of the loan before the tenure ends. However,
applicants must review the lender’s prepayment policies and check if any
charges are applicable.
Online Application and Tracking
Applicants can apply by
providing basic information on the lender's application or website and start
receiving approval updates. After the loan is approved, users may also be able
to view their EMI calendar and account summary on these platforms.
Opportunity to Build Credit Score
As individuals repay the
entire loan amount with timely EMIs, their credit score improves. This is
because timely payments reflect financial discipline. Once a healthy credit
profile gets built, individuals may become eligible for higher loan amounts and
reasonable terms.
Conclusion
An instant personal loan
acts as a practical option for meeting urgent financial requirements while
having flexibility in repayment and use cases. With various benefits such as
minimal paperwork, no collateral requirement and swift processing, it can
become a favourable solution in financially stressful times. The processes have
become much simpler with digitisation. Individuals can use apps to compare
different loan options and select the ones that fit their ability to pay.
Besides, the loan app also allows applicants to use EMI calculators to know
what their monthly repayments will be. Individuals must check the offer details
beforehand to select the loan offer that aligns with their financial capacity.