When you are short of funds to meet certain financial goals, a personal loan could help you. Proceeds from an instant personal loan online can be used to meet different monetary shortages for occasions like weddings, travel plans, home renovation etc.
Unique benefits of instant personal loans include quick processing, minimal documentation, and zero collateral requirements. Since such personal loans are processed based on your Aadhaar card and PAN card, they are also known as Aadhaar loan and PAN card loan.
Read on to know the stepwise process to opt for an instant personal loan.
1. Determine your loan requirement
You must opt for only the amount that you require and not unnecessarily ask the lender to provide you with a higher loan proceed. For instance, if you require Rs 1 lakh for home renovation, then you must opt for only this amount and not avail a higher amount than this even if you’re eligible for it.
This is because a personal loan charges an interest rate, which you must repay at all costs. So, opting for an unnecessarily higher loan amount increases your interest outgo, which unnecessarily increases the cost of the loan for you.
2. Check if you are eligible for a pre-approved loan
Once you are aware of the amount you need as loan proceeds, you must check with different lenders with whom you have an existing relationship to know if you have any pre-approved personal loan offers. You may also check your net banking account to find any pre-approved offers.
If you find such offers, compare all the offers to opt for the one charging the lowest interest rate and processing charges at suitable terms and conditions. To compare amongst different lenders, you can use an online personal loan calculator.
3. Compute your monthly Instalments
Once you have shortlisted the lender, use an online EMI calculator to decide the approximate monthly loan repayment as per your cash inflow and repayment capacity. You can modify the parameters in the calculator like the repayment tenure and interest rate to derive the result of your choice and preference.
4. Approach the lender
You can place an application for an instant personal loan with the bank in different ways – online or by visiting the bank branch. For a more convenient loan application process, you should consider applying for an instant personal loan online.
In today’s scenario, you may come across different instances of unanticipated expenditures. Choosing an online personal loan is one of the easiest and simplest ways to tide over such a crisis.
This kind of financial help does not require any security or collateral and is instantly disbursed on the same day of placing the loan application. However, as such instant loans require no physical documentation and are disbursed quickly, the loan interest rates may be slightly on the higher side than other types of loan.
Hence, an instant personal loan is recommended over a regular personal loan only if your need for funds is immediate.
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