Immediately personal loan in India: What it means and how to avail one

New Delhi: An "immediately personal loan" equals an instant personal loan, which is a set amount of money that is given in a matter of hours or minutes. This kind of loan is taken out when funds are needed as soon as possible. Such loans provide easy and quick access to funds for medical emergencies, travel, education, or debt consolidation. Unlike traditional loans, which take days for approval, immediate personal loans eliminate paperwork using online systems.

Many lenders in India now offer these through mobile apps or digital platforms. Some banks even claim to disburse pre-approved or instant loans in ten seconds for eligible customers.

When and why might you need one?

There are situations when you may require money urgently, and immediately personal loans are designed for those times. Common scenarios include:

• Medical emergencies: Waiting to pay hospital bills or facing an uninsured illness can be expensive. Having the funds ready ensures one can get the treatment promptly without delay.
• Urgent repairs or immediate needs: Whether it’s a car breakdown, a sudden home fix, or a last-minute travel plan, quick funds can address the problem without delay
• Debt consolidation: You could use an instant loan to pay off multiple smaller debts, combining them into one (ideally at a lower interest rate).

Rohit’s father required urgent surgery, and the hospital wanted a ₹50,000 deposit before attending to him. Rohit quickly applied for an instant personal loan via a mobile app. He was approved for the loan by the end of the day and subsequently settled the payment for the hospital. It is critical to understand the repayment plan before applying for the loans and only utilise them in extreme circumstances.

How to Apply for an Immediate Personal Loan

In most cases, taking out an immediate personal loan in India can be done online without paperwork. The steps include:

• Selecting a lender: Decide whether to borrow from a bank, NBFC, or a credible loan app. Ensure the lender is RBI-registered and trustworthy.
• Determine their eligibility criteria: See if you have any pre-approved loan offers (your bank might show this if you’re eligible). Otherwise, use the lender’s app or website to check the loan amount and terms you can likely get based on your income and credit score.
• Submit application and documents: Fill out the online form with your details and upload the required documents (KYC documents, income proof, etc.). You generally do not need to visit a branch at all.
• Approval and disbursal: The lender’s system will verify your information quickly. If approved, you agree to the terms online, and the money is disbursed directly to your bank account, often within minutes or a few hours.

Eligibility Criteria

While criteria differ by lender, generally, you should meet these conditions for an immediately personal loan:

• Age: 21 to 60 years old is a common range (some lenders accept 18+ applicants
• Income: Requires some form of consistent income, typically ₹15,000 a month for salaried workers.
• Employment: A credit score ~700 or above is ideal. A higher score improves your chances of quick approval.

Meeting these basics makes approval more likely. Some fintech lenders might be flexible on one criterion if other factors (like income or credit score) are very strong, but it’s best to be prepared on all fronts.

Documents Required

One big advantage is the limited paperwork. You will need to provide digital copies of a few key documents:

• Proof of identity and address: Aadhaar, PAN, Passport, Voter ID, Driving License, etc.
• Proof of Income: e.g., recent salary slips, bank statements, or last 1-2 years’ ITR for self-employed applicants.
• Employment proof: can be in the form of an employee ID card or job offer/appointment letter (if self-employed, business registration documents).
• Bank account proof: can be a cancelled check or a passbook copy to validate your bank account for payment.

All documents are typically uploaded online or verified electronically. This streamlined process means you don’t have to gather extensive paperwork – the basics above usually suffice.

Pros and Cons of Immediate Personal Loans

Pros:

• Fast access to funds: Fast approval and disbursal. Funds are sometimes made available within hours of applying.
• Minimal paperwork: only the basic documentation is required, along with an online procedure.
• No collateral: These are classified as unsecured loans, so there is no need to put any assets at stake to obtain the funds
• Flexible use: You can use the loan for any purpose (medical, travel, education, etc.) without restrictions.

Cons:

• Higher interest rates: The rates are likely to be higher than a standard bank loan due to the willingness to give instant personal loans.
• Shorter tenures: They may need to be repaid in a shorter period, which means higher EMIs and more pressure on your budget.
• Charges: Processing fees or other charges can be high, adding to the cost of the loan. Always check for any hidden fees.
• Risk of debt trap: Easy access can lead to over-borrowing. Taking multiple quick loans or rolling over loans can trap you in debt and hurt your credit score.

Safety Tips for Borrowers

• Stay safe from uncredible lenders: Using services offered by only RBI-registered banks, NBFCs, or reputable loan apps will go a long way in ensuring your safety. Legitimate lenders follow fair recovery practices and will not harass you. If a lender’s agent uses threats or intimidation, that’s a red flag – stop dealing and seek help.
• Check all terms and conditions: Even if you’re in a rush, read the loan terms. Know the interest rate, tenure, processing fee, late payment charges, etc..
• Safeguard your privacy: Be cautious with apps that ask for too many permissions. Legitimate lenders won’t need access to your contacts or photos. RBI guidelines say digital lenders should not collect unnecessary personal data.
• Cultivate healthy credit habits: Only take up loans that you foresee yourself being able to repay comfortably. Do not borrow fresh loans to pay older ones – this habit can easily lead you to a debt trap.

Always follow this deal while taking up a personal loan. If done recklessly, using personal loans as an emergency fund will only result in personal loans creating new financial problems.

Endnote

An immediate personal loan can be a lifesaver during urgent financial situations—be it for medical emergencies, home repairs, or debt consolidation. However, choose only credible lenders. Stashfin is one such trusted digital lending platform. Download the app and see the magic.