Personal loans are one of the most convenient tools to access emergency funds. They are mostly preferred by those who want funds immediately without providing collateral. When compared to a personal loan, an instant personal loan is an unsecured loan that provides quick access to funds.
It is provided by lenders with minimal documentation and is approved within minutes or a few hours. Therefore, an instant personal loan is a convenient tool to address short-term financial requirements. Check out a few tips to ensure your request for an instant personal loan is approved easily.
1. Loan amount and tenure
Before applying for an instant personal loan, estimate the required amount well. This will help you borrow the required amount according to your income and repayment capacity.
Additionally, estimate the loan’s tenure. Choosing a longer tenure would mean paying low EMIs every month but high interest on the overall loan amount.
2. Source of income
Most lenders would quickly approve instant personal loans for borrowers with stable incomes and steady employment. Different lenders may have a minimum monthly income limit to grant an instant personal loan. For self-employed borrowers, lenders may ask to provide proof of stable incomes through IT returns. If you qualify for this limit, it will be easier to get your instant personal loan approved.
3. Good credit score
One of the major criteria lenders look for when approving instant personal loans is credit score. This score reflects your ability to repay the loan on time, and hence, it is crucial. To maintain a good credit score, it is advised to adopt certain practices, such as timely bill payment, low credit utilisation ratio, etc.
4. Keep documents ready
Instant personal loans require less documentation when compared to a personal loan. However, you might be asked to provide certain documents such as address proof, income certificate, identity proof etc. It is advised to keep all these documents ready to avoid delay in approval of the loan.
5. Use EMI calculator
While getting an instant personal loan, it becomes essential to have an estimate of monthly EMI payments to plan your finances. Mostly, instant personal loans are available to those who want quick funds. Hence, EMI calculators come as a great help in figuring out monthly payments easily. This will simplify and quicken the process of calculating EMI payments.
In conclusion, an instant personal loan is an efficient tool to address emergency expenses in this dynamic financial landscape. However, like every other loan, an instant personal loan has to be repaid in the future. Therefore, in the rush to get funds, do not forget to estimate your ability to repay the loan and do not go overboard with the loan amount. Always request a loan amount that can be comfortably repaid in the future.
