Quick loans are granted within no time unlike other loans which take quite some time to process. Quick loans can come to the rescue when you need emergency cash. Some of the quick loans are granted within a day or two’s time. Most of the quick loans are unsecured loans which means that the borrower needs no collateral to avail the loan.With quick loans, you don’t have to borrow from family and friends anymore when you need emergency cash.
Types of quick loans
There are different types of quick loans available and listed below are some of the quick loans.
- Same day loans-Same day loans is a kind of quick loan that is granted the same day. Same Day Loan is your best bet when it comes to emergency cash.This requires minimal documentation and no credit check. Even people with a bad credit score or poor credit history can get a loan in no time.The interest rates on same day loans is much higher when compared to regular loans.
- Payday loans- A payday loan is a short term unsecured loan that is granted in hours.One can even apply for payday loans online and get approved in minutes.The loans are granted in less than 48 hours and involves a hassle free procedure. The lenders usually charge a higher rate of interest since the loan is advanced with no financial background check and require no collateral.
- Credit cards- Credit card can serve as a tool when it comes to getting quick loans. Many of the banks offer instant loans on credit cards for lower rate of interest. The loan is approved quick with minimal or no documentation. But one can’t avail loans on all the credit cards, it is important to check if the credit card you are opting for has a loan facility before buying it.
- Quick no credit check loans- Quick no credit check loans are the best type of loans for people who need quick cash but have a bad credit history. Quick no credit check loans are granted as soon as the documentation is verified. This type of loan charges very high interest rates and is a short term loan.
Advantages of quick loans
Listed below are the advantages of quick loans
- Speed- The loans are granted within 48 hours. Some loans are advanced within a few hours from the time of application.
- No credit check- Most of the quick loans do not require the applicant to have a good credit score.
- Minimal documentation-The loans require minimal documentation, hence the quick approval.
- Unsecured- Most of the quick loans are unsecured loans, meaning that the loans are granted with no requirement for a collateral or security.
- Available for non existing customers-The banks don’t require you to be an existing customer to avail the loan, even non existing customers can apply for the loan.
- Online-One can apply for quick loans online with no hassles.
- Lesser paperwork- Quick loans require minimal paperwork.
- Available for self employed individuals-Quick loans are available for self employed individuals too.
Disadvantages of quick loans
Disadvantages of quick loan are listed below.
- Higher interest rates-Quick loans charge a very high rate of interest. It is almost double the rate of interest offered for regular loans.Hence quick loans are far more expensive than regular loans.
- Short term loans- Quick loans are short term loans that needs to be repaid back in a few weeks or months. Making heavier payments in a limited amount of time makes it difficult for the borrower.
- Shady lenders-Some of the lenders who provide quick term loans are not official banks or financial institutions. Borrowing from a non certified lender can be risky.
Quick loans in India
The quick loans offered by the banks and financial institutions are different from the quick loans offered worldwide. There is no special kind of loans called quick loans in India but there are alternative loans with quick approval. Some of these loans are approved even within 10 seconds.These loans require simple documentation and have lenient requirement terms.
Types of quick loans in India
Listed below are the types of quick approved loans offered in India.
- Personal loans- Personal Loan is the best alternative for quick cash loans. Most of the personal loans are unsecured loans that require very less documentation and are approved within days.Some personal loans are approved within hours and the borrower can get access to the loan amount the very same day of approval. HDFC, an Indian banking company offers personal loans that with a 10 second approval and is available for existing HDFC customers. It can be applied for online and the loan gets approved within seconds given that the correct information is provided by the borrower.Some of the personal loans offer special rates and discounts for women and senior citizens.
Listed below is the eligibility criteria for personal loans in India
- Any salaried, non-salaried, self employed individual.
- Resident of India.
- Some banks require the applicant to earn a minimum income.
- Some banks require the applicant to have a bank account with them
Interest rates-The interest offered for personal loan is set by the bank and it depends on the loan amount, the tenure period and the repayment capacity of the applicant.
- Credit card loans- One can avail a pre approved loan on their credit card with very low interest charges. This is called an insta loan and is approved within a matter of few hours. It requires minimal or no documentation and the loan amount will be credited to the borrower’s bank account as soon as the loan is approved.The loan can be repaid in flexible tenures.
Listed below is the eligibility criteria for credit card loans in India
- The customer should own the credit card
- Good credit repayment history
- The credit card needs to be upgraded in some cases
Interest rate- The rate of interest offered for the loan on credit card depends on the loan amount and the predetermined rate of interest(if any).
Tips on choosing quick loans
With so many options available for quick loans, it can be confusing when it comes to choosing the right one. If you want a loan for a higher amount, you should opt for a personal loan as the loan amount advanced in the case of personal loan is much higher than the loan amount advanced for loan on credit cards. Other important factors to be considered while opting for a quick approved loans are the rate of interest and the tenure period. One can choose the right kind of loan by using online financial comparative websites through which they can get all the necessary details required.
- Can self employed people get personal loans?
Yes, self employed individuals are eligible for personal loans.
- Is there a need for collateral with personal loans?
There is no need for collateral with personal loans except for secured personal loans.
- How can one apply for a loan on credit card?
One can apply for a personal loan online or through a call.
- Are payday loans offered in India?
Payday loans are not offered in India.
- Is there a restriction on what purpose the personal loan can be used for?
There are no restrictions on what the personal loan can be used for.
- How are EMIs calculated for personal loans?
The EMIs on personal loans is calculated based on the loan amount and tenure period.