Everything You Must Understand Before Availing an Instant Personal Loan

An instant personal loan is unsecured, which means you are not required to pledge your assets to avail a loan. Just like other loans, you must repay a personal loan in monthly instalments. So, if you are determined to find the best instant personal loan, then do your research first! Customization, flexible repayment terms and no end-usage restriction are making these new-age loans a more attractive product to the working class and millennials.

With a personal loan, you can fund any expense such as, your child’s education, a trip, a wedding, medical expenses, home renovation, or even buying your favourite gadget. You can also utilize the loan amount to help you out with your daily expenses in case of any cash flow crunch. Just apply for a personal loan online in a few simple steps and you can get approved without any paperwork.

Things you must consider before availing an instant personal loan

• Compare the different interest rates – Conduct better research and settle with a lender who offers you loans under reasonable interest rates.
• Check for any paperwork – Instant personal loans are paperless and involve minimal documentation. Hence, finalize with a lender who requests you to submit only a few mandatory documents to approve your loan request.
• Always think before applying for a loan – You should always choose a loan amount which can be repaid easily without disturbing your monthly budget.
• Do not take your credit score for granted – Check your credit score, before applying for a loan. If you have a low credit score, then there are high chances of getting your loan rejected. 
• Stay away from unofficial lenders – Many lenders offer you an instant personal loan at very low-interest rates. You may get attracted to any of these offers, but remember that, finally, you end up paying huge interest, hidden charges, and fees. So, it is recommended to find a legitimate lender to apply for a loan.
• Never fake your documents – A strict no-no if you are thinking to avail a loan by faking your documents. Your lender can immediately identify your dishonesty and reject your loan request, which will eventually hit hard on your credit score and may also land you in jail.

Eligibility and documentation required

There is no standardized eligibility criteria or document list followed by lenders. These parameters differ from one lender to another.

To qualify for the eligibility criteria, most of the lenders generally ask for your age, nationality (Indian) and income. It is a common notion that most of the lenders approve loans for the working class i.e., for salaried professionals because it is easy for the lender to determine your creditworthiness and repaying ability.

The ideal credit score opted by many lenders is more than 750. Hence, ensure that you are having a good credit score to easily get qualified for a low-interest rate personal loan. Based on your credit score and financial history, the final loan amount will be sanctioned by your lender.

Moving ahead, basic documents requested by your lender are listed below:

• Identity proof – Voter ID, Aadhar Card, Driving license etc.
• PAN Card
• Address proof – Passport, Utility bills, Voter ID, Bank Statements etc.
• Last 3 month payslips
• Photo/Selfie

Sometimes, for further verification, your lender may even ask for additional documents as well.

Steps followed to avail an instant personal loan

You can apply for an instant personal loan online right from the comfort of your home. The basic steps involved are:

• Once, you have finalized your lender, you need to visit the official website of your lender or download their mobile application to check for your eligibility.
• If you qualify for the eligibility criteria, then you can fill the entire online application form, provide all the requested information and upload the necessary documents.
• Your documents will be under verification. If you have qualified, your request will move to the approval process.
• If you are approved, the funds will be disbursed into your account.

Based on the lender you have chosen, you can get your loan amount in the account within a few minutes to a few hours.

Bottom Line

An instant personal loan can be the best financial product that can help fulfil your dreams without any further delay. So, if you are planning to avail the best instant personal loan, consider applying with FlexSalary. Just with a simple application process and minimal documentation, it is easy to get approved for a same-day loan up to INR 2,00,000 with Flex Salary.

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