What is an Instant Loan?
First, it is crucial to understand the meaning of instant loans to make an informed financial decision. Simply put, it is an unsecured loan with no usage restrictions. You can use it to meet various financial needs, including home renovations, wedding expenses, education costs, medical emergencies, travel expenditures, etc. You may also use one to ease your liquidity crunch or consolidate your debt.
Unlike credit cards, an instant Personal Loan provides lump sum amounts that help fulfil various planned or unplanned requirements. You can repay the loan with interest in monthly instalments over a pre-determined loan tenure. Compared to credit cards, their interest rate is lower, and they are easier to avail.
Moreover, you can use a Personal Loan to cover any expense, including occasional requirements, emergencies, dreams, or goals. The increasing demand for Personal Loans has led to competition among lending institutions, working in your favour to get the best loan deal without hassle.
Read Also:How can I get an Instant 1,50,000 Loan?
How Does an Instant Personal Loan Work?
While many secured loan types require you to offer an asset as collateral, Personal Loans are unsecured that do not require any collateral, guarantor, or deposit as security. If you default on the loan, you must face repercussions, but your hard-earned assets remain safe. Unlike credit cards with low credit limits, you can efficiently use a Personal Loan to finance big purchases and expenses like foreign vacations, weddings, higher education, etc.
When you apply for a loan, and the lender approves it, you receive a lump sum loan amount in your bank account. You can use the loan for your intended purpose and repay the borrowed amount to the lender in monthly instalments. You can choose a repayment term to adjust the EMIs suitable to your monthly budget.
The payback period can be up to 60 months, making repayment easily manageable. Once approved, the interest rate remains fixed throughout the loan tenure, keeping the EMIs immune to market fluctuations.
Why Instant Loan is Better than Others?
Now that you understand what an instant Personal Loan is, you must know how it is better than other funding options. Here are a few parameters where instant Personal Loans leave others behind:
| Nature | Reason |
Zero Collateral | An instant Personal Loan is collateral-free, and you can easily avail of it without any collateral, deposit, or guarantor |
Attractive Interest Rate | Low-interest rates minimise your loan cost and make repayment easy to manage |
100% Digital Process | A 100% digital process accelerates loan approval, making them the best emergency funding options |
Flexible Amount & Tenure | NBFCs like Hero FinCorp offer instant Personal Loans of up to Rs 5 lakh with flexible repayment terms of up to 60 months |
A Personal Loan EMI calculator helps calculate EMIs for various terms to help you choose the most appropriate loan tenure.
Eligibility Criteria for Instant Personal Loan
Lending institutions have specific eligibility conditions you must fulfil to apply for their loan. Remember to check Personal Loan eligibility criteria before applying to ensure quick approval without hassle. At Hero FinCorp, you must meet the following basic conditions to qualify:
Age: Minimum 21 and maximum 58 at application and term-end, respectively.
Citizenship: Indian citizenship is mandatory.
Profession: Both salaried employees and self-employed professionals are eligible.
Working Experience: At least six months for salaried employees and two years for self-employed.
Monthly Income: A minimum monthly income of Rs. 15,000.
Required Documents to Apply for Instant Loan
Since instant Personal Loans are unsecured, lenders pay due attention to your documents to determine your eligibility and repayment capacity. So, be prepared to submit the following documents required for Personal Loan application as per your occupation:
Mandatory Documents: Duly filled loan application form, Passport-sized photograph (coloured)
Identity Proof: Driving licence, passport, PAN card, or Aadhaar card
Address Proof: Driving licence, passport, Aadhaar card, ration card, or utility bill
Residence Ownership Proof for salaried: Electricity bills, maintenance bills, or property documents
Office Address Proof for self-employed: Maintenance bills, utility bills, property documents, or rent agreement
Ownership Proof for self-employed: Business existence proof, like a copy of tax registration, shop establishment proof, or company registration certificate
Income Proof: Last six months' salary slips, the previous six months' salary account statement, Form 16 for salaried and last six months' bank statements and ITR for the previous two consecutive years for self-employed
Job Continuity Proof for salaried: Appointment letter from the current employer or experience certificate from the previous employer
How to Apply Instant Loan Online?
Personal Loan online application procedure involves basic steps you can perform from home. These include the following:
Visiting the Hero FinCorp official website or downloading the loan app
Filling out an online application form with your personal, professional, financial, and bank details
Scanning and uploading the documents required for Personal Loan application
Waiting for the verification process to be complete
Reviewing and accepting the loan offer
Getting disbursal in a few hours
Conclusion
Here, we have explained what an instant loan is and how it is better than others. If you are considering applying for one, download the Hero FinCorp Personal Loan app and apply online. Just follow the on-screen instructions for the application. Everything, from application and approval to disbursal, is simple, fast, and transparent at Hero FinCorp.
Read Also:6 Things to Know Before Taking a Loan from any Instant Loan App
Frequently Asked Questions
1. Is an instant loan good?
Yes, an instant loan is a good funding option for various reasons, including no usage restrictions, competitive interest rates, flexible repayment terms, etc.
2. Who is eligible for an instant loan?
Both salaried employees and self-employed professionals are eligible for an instant loan. Check the Personal Loan eligibility criteria of the lender to ensure.
3. What happens if we don't pay an instant loan?
In case of default, you must pay penalties and extra charges that increase the cost of borrowing.
4. What happens if I miss one EMI payment?
If you miss one EMI payment, it will appear in your credit report and negatively affect your credit score.
