Our expenses often exceed earnings, and keeping up with this loop can be tricky. Most people need an external booster to get things on track. This is where personal loans come in to save the day. Personal loans can help you cover expenses such as medical bills, home renovations, or other large expenses that may arise unexpectedly.
Digitization in the financial world has helped to improve the customer experience by making accessibility of financial products and services easy. While the traditional loan application process can be time-consuming, there are some easy and hassle-free ways to get an instant personal loan. Let’s delve deeper into what instant personal loans entail and how to get them easily.
What are instant personal loans?
Personal loans are unsecured loans that allow you to borrow funds from financial institutions. Instant personal loans are similar to traditional personal loans. However, there is a crucial difference. Conventional personal loans consumed a long time to process applications and disburse funds. However, instant personal loans cut down the processing and disbursal time to one or two days. You can opt for an instant personal loan during emergencies. However, you must be mindful of the personal loan eligibility criteria.
How to get instant personal loans easily?
Now that we know what personal loans entail, let’s look at the easiest ways to get an instant personal loan.
- Online personal loans
One of the easiest and quickest ways to get an instant personal loan is through online loan providers. Reputed financial institutions have dedicated online portals to offer instant personal loans. Online instant personal loan providers have relatively low documentation requirements and are faster at application processing. It makes it easier for borrowers to get a loan whenever needed. You can apply for an instant personal loan from the comfort of your home, and the loan amount can be disbursed within hours of approval.
- Credit card loans
Credit cards are among the best ways to obtain instant personal loans. However, the only requirement is you must own a credit card. You can use the amount to cover your emergency expenses and repay the loan through your credit card bill. Just remember that using credit cards to obtain instant loans can be relatively expensive.
- Payday loans
If you are a salaried employee looking for some external financial aid, payday loans can be your savior. These short-term loans are designed to provide funds until your next payday. Payday loans have a relatively shorter duration than other instant personal loans. These loans are usually easy to qualify for and require minimal documentation. However, they can be expensive, with high-interest rates and fees. Therefore, it is essential to use them only for dire emergencies such as medical bills and repay the borrowed amount as soon as possible.
- Loan against FDs
The working Indian population mostly invests in Fixed Deposits or FDs as it’s among the safest investment options. A fixed deposit account offers a return in the form of interest income. The good news is that you can leverage your FD account to obtain an instant personal loan. This type of loan is easy to get and offers a lower interest rate than other personal loan types. The loan amount is usually a percentage of your fixed deposit amount. It is great for people with FDs who are not planning to withdraw the funds anytime soon.
- Loan against insurance
Another easy way to obtain an instant personal loan is by using your insurance policies as collateral. This type of loan is easy to obtain, and you don’t have to repay the loan until the policy matures. It is a great way to take an instant personal loan at a low-interest rate. This option can be a good choice for those who have an insurance policy with a high surrender value.
- Account overdraft facility
Financial institutions offer account overdraft facilities to trusted customers who have been their customers for a long period. The overdraft facility can be treated like a personal loan. However, you must aim to repay the amount as soon as possible.
Final words
A personal loan can be the easiest solution to your financial emergencies. You don’t have to worry about collateral or other complicated documentation requirements. These are some of the easiest ways to get a personal loan instantly.