It’s a blessing for someone in a tight spot to get a fast personal loan that doesn’t need any collateral. It may be helpful for people who are in a financial crunch and need a rapid answer without the burden of a lengthy application process. This raises the following query:
What is the Process of Obtaining a Personal Loan?
A personal loan is an unsecured, no-collateral loan that salaried or self-employed borrowers can use for whatever purpose they see fit, without having to give a reason. With no assets to put up as security, it is a popular short-term finance option for those just starting in their careers or jobs.
Eligibility Criteria for a Personal Loan
However, personal loans are created in a way that many people may qualify for them.
If you are an Indian citizen or resident over the age of 21 and generate a net monthly income of more than 30000, you are eligible for a personal loan. In certain cases, the minimum wage requirement is as little as INR 10000 for some lenders. For this reason, personal loans have become so popular as a means of dealing with financial emergencies that many people may easily obtain them when they are needed.
Instant Personal Loans can Make a Big Difference – For Examples
Some examples of financial emergencies include-
- A Life-Threatening Situation
- It’s time to book plane tickets due to an urgent personal circumstance
- Examination/Visa Processing Fee Payment Deadline
- Deposit for new city apartment required
- Debts need to be paid off ASAP
- A business crisis
Consider each of these scenarios in further depth
#1: A Life-Threatening Situation
If a family member suffers a medical emergency and requires a rapid deposit of funds, there is no time to waste in dealing with this crisis. You don’t have time to go to many banks and lenders to get a loan, nor do you have time to sit around and wait for the lengthy process and paperwork to be done. Such situations necessitate an online personal loan that may obtained within 24 hours. It’s impossible to put a figure on the ease of a paperless procedure. In an emergency, this is nothing short of a miracle because you may see the funds in your account within 24 hours.
#2: It’s time to book plane tickets for urgent personal circumstances
A close family member’s death in another city or country necessitates the purchase of a plane ticket to travel there. In the event of a serious financial crisis, you may be unable to find the money needed to purchase the tickets. A fast personal loan might be a customer-friendly option that addresses your problem in a jiffy when you need it most. You don’t have to go through friends and relatives to find a solution. Instead, you may contact a fintech lender.
#3: Deposit for New City Apartment Required
Trying to find a new place to live in a new city may be a difficult task. Depending on where you live, you may have to put down a security deposit ranging from six to twelve months worth of rent.
If you locate the right apartment and need to finalize the transaction immediately, having instant access to cash to deposit the rental deposit may become a necessity. In particular, if the location is well-known and has numerous interested parties, this is especially true. To get the sale done as quickly as possible, an urgent personal loan might be really useful.
#4: A Business Crisis
If you’re self-employ and worried about running out of cash, a personal loan might your saving grace. If you’re having trouble paying your payments because of a lack of working capital, this might be a lifesaver.
#5: Personal Loan Application and Approval Procedure
Obtaining a personal loan is a streamlined procedure that is quick and easy. The web interfaces are easy to use, and there is very little paperwork involve. A simple online application and the following documents all are require.
National Identification Number (PIN) Card
Using a driver’s license, passport, or Aadhaar card for KYC verification of an address.
Pay stubs / Monthly income figures for the previous three months
The last six months’ worth of bank statements
If your paperwork is correct and your CIBIL score is high, there is a significant chance your loan will authorized right away. The money will sent to the designate account as soon as it has been approved
An emergency can handled in as little as a few minutes and as little as 36 hours if all goes according to plan
Advantages of Personal Loan
One of the best ways to deal with an unexpected financial crisis is to take out a personal loan. Personal loans can range from as little as Rs 1000 to as much as Rs 25 lakhs. Annual interest rates can range from 11% to 24%, although this is still less expensive than using a credit card for the same purchases. Anywhere from two months to five years is possible.
Flexible repayment alternatives are available to the borrower. A personal loan EMI calculator may used to figure out the best term and EMI for each individual’s budget. After six months of making your loan payments, most lenders allow you to foreclose the loan without incurring a prepayment penalty.
In the event of an unexpected crisis, a fast personal loan might be a godsend. Unsecured loans from reputable lenders are structure, and written agreements are in place. The simplicity, rapidity, and seamlessness of the process make it a highly sought-after solution for relieving tension during an emergency. A personal loan might be the greatest solution in times of need.