Instant personal loans allow us to fund any untoward or sudden expenses that may arise at any time. They refer to loans for specific amounts that must be repaid in instalments over a pre-decided period. Some lenders, however, offer borrowers repayment flexibility wherein they can prepay the borrowed amount if they want.These online personal loans are easily sanctioned provided you meet the various requirements set out by the lender.
The Most Attractive Features of a Personal Loan
Quick Approval and Instant Disbursal
Instant personal loans as the name suggests refers to loans that are processed and sanctioned instantly. While you may be required to submit certain documents to prove your identity and other details, this can be done online thereby reducing the time involved in the whole process. Since these loans are applied for to meet some urgent funding needs, the lenders allow instant disbursal once the loan application has been processed and cleared.
No Security is Required
Online instant personal loans are unsecured loans that are granted without any kind of security or collateral. The lender takes the decision based on the applicant’s creditworthiness reflected in his/her credit or CIBIL score, total income, current liabilities, and the ability to repay the borrowed amount on time. So, if you wish to apply online for a personal loan do take steps to ensure that your credit score is good.
Loan Tenures can be Customized
The tenure of a personal loan can be customised according to the borrower’s requirements. The best banks for personal loans offer borrowers an option to choose the tenure of the loan sought and charge interest rate accordingly. A loan for a higher tenure may involve higher interest rates than the loan for a shorter tenure. However, most lenders set an upper limit for the tenure for which allow borrowers to make online personal loan applications. You can always use the loan calculators to check the EMIs for a loan amount for various tenures.
Personal loan amounts can vary depending on a borrower’s individual requirements and the limits set by the lender. So, you can seek a personal loan for the exact amount that you need to fund a specific project or expense. You do not need to apply for the full amount that you are eligible for based on your income levels.
The interest rates on an instant personal loan online are decided by your creditworthiness and the credit score. A higher credit score of 700 and above is viewed favourably by the lenders but a credit score that is lower than this will result in the sanction of loans at comparatively higher interest rates.
The total cost of getting instant personal loans may also include a one-time processing fee charged by the lenders. Other things to check before you apply for a personal loan is the applicable default penalties or any prepayment penalties.