Quick loans are very beneficial during times of financial struggles. These loans are not conventional loans like loans from banks. However, even banks provide instant loans nowadays. These loans come with several flexible aspects. One does not have to submit too many documents to the lender for proving their repayment ability. Borrowers also do not have to furnish any collateral or asset for getting their quick loan application approved. Moreover, one can get this loan in just a few hours, typically within 24 hours. These loans are great options if you do not want to go through the delay of waiting that comes with traditional loan products.
Guidelines for getting a quick loan
Quick loans are very easy to obtain when compared to conventional loans. However, you need to be a little alert while applying for a quick loan. You can follow a few simple guidelines to make sure you have a comfortable borrowing process without any hassles:
- Be a responsible borrower: When you plan to apply for a quick loan, you should make sure that you are a responsible borrower while repaying your loan. You need to plan your overall expenses by taking your quick loan installments into consideration. You need to maintain a good relationship with your lender by paying each of your installments within the payment deadline.
- Make sure you do not apply for too many loans: Applying for a quick loan is simple. However, you should not go overboard. You should avoid applying for too many loans from different lenders. When you have too many loans in your name, your overall creditworthiness can get affected. Moreover, you will find it hard to pay back so many loans, and there are high chances of entering a financial crisis.
- Do proper research before applying for a quick loan: You will have to perform proper research regarding the various quick loan options before you apply for one. You need to find out everything about the different quick loan products and then make a clear-cut decision. You can research online or get in touch with a representative who works with your lender. When you are aware of the loan features and procedures, you can be assured that your loan will get approved and disbursed quickly.
- Apply online: You can apply online or by going directly to your lender’s branch. You can get a quick loan by going to the official website or app of your lender or a third-party financial web portal. Applying online is quick and hassle-free. You can upload your relevant documents on the website itself without having to submit hard copies of these documents at a bank branch.
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.
Where can you apply for a quick loan from?
In India, you can apply for a quick loan or an instant loan mainly from 3 sources and they include:
- Non-banking financial companies (NBFCs)
- Peer-to-peer lenders (P2P)
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).
How are quick loans helpful?
You may come across certain situations where you would need funds immediately for a small tenure. You may face emergencies or day-to-day requirements. In such cases, you may need some quick funds, but you may not get them easily from conventional lenders. When you face such financial problems, you need a hard-core solution. This is where quick loans come into the picture.
Quick loans are alternate types of loans that enable you to meet your personal needs efficiently. These loans can be taken for a short period or a long period depending on your preferences and necessity. These loans are flexible in nature and are ideal for temporary needs.
How quick loans work?
- Easy registration process: You will have to register with your lender to express your interest in a quick loan. You will need to enter your personal details, employment details, previous credit details, and income details.
- Speedy verification: Once your lender receives your quick loan application or interest, your lender will verify your details with relevant documents. This will be done in a minimal way in order to make sure that the disbursal does not get hindered.
- Immediate transfer of funds: If your lender thinks that you meet the required eligibility criteria, then your loan will get sanctioned. Next, your lender will disburse the funds to your bank account in a jiffy. You can then utilise the funds as you wish.
What you need to know about quick loans
When you apply for a quick loan, you need to be aware that there are quick loans and quick loan approvals. Sometimes, lenders approve your loans quickly or instantly, however, they disburse the loan amount later. These are described as quick loan approvals. Under quick loans, your loan gets quickly sanctioned and disbursed as well.
In India, you will most likely need a pre-approved loan for getting a quick loan. You can then apply for this loan by going to the net banking platform of your lender. Once you click on this loan, you will need to key in your information such as name, residential address, age, contact number, permanent account number (PAN), and income details.
When your lender checks your application, if they find any discrepancy in your details, then your quick loan application may get rejected. Hence, it is very important for you to make certain that you give accurate details in order to avoid any kind of delay or trouble. Make sure you check that your application form is flawless before you click ‘Submit’.
For quick loans, your lender may evaluate your credit profile by taking your previous credit information from credit bureaus. Whether you choose a bank or a non-banking financial company as your lender, you will most likely have to pay a processing fee.
Also, quick loans are good for those who have well-established relations with their lender. This relation can be established by having an existing savings account or by having an existing loan from your lender. In such a situation, your lender will already have your personal and income details. Hence, when you apply for a new quick loan, your lender will not take much time to evaluate your details before approving your loan.
Quick loans or instant loans are typically unsecured in nature. However, if your lender allows you to submit an asset, then you can pledge an asset such as car, shares, gold, or a house as your collateral. This way, you can get a loan at a lower interest rate. Your lender will have a lower risk level as your asset secures your loan in case of a default.
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.
Quick loans from P2P companies
You can apply for a quick loan from a peer-to-peer lender (P2P) too. For this, you will be required to register yourself with a P2P company. While registering, you will have to provide your basic details such as name, age, address, income, and PAN. If any lender is interested in your details, they will reach out to you and check with you if you are in need of a quick loan.
- 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.