4 reasons why instant personal loan are better than conventional loans

One simply cannot predict the possibility of urgent cash requirements and it might panic you for a minute. You might require cash for any purpose such as home renovation, car repair, urgent medical attention, fund your sibling's college funds or consolidate your debt. Well, there can be an end number of reasons; however, personal loans offered by banks and non-banking finance companies might just help you fulfill your financial goals on time. Plus, you can enjoy attractive interest rates that would not burn a hole in your pockets.

However, the age-old process of visiting branches for application, fill up form, submit it, then wait for the approval and finally an instant personal loan gets disbursed to your account, else a cheque is handed over to you sounds very sluggish and slow. Also, it won't meet your financial purpose on time as well. Therefore, a new niche has entered into the lending segment termed as FINTECH companies.

These companies believe in quick loan sanction and instant disbursal within 1-2 days in your bank account. They easily suppress the processing time compared to conventional personal loans and offer them on the basis of your income source and social worth score.  Some of the leading FINTECH companies easily offer loan amount as low as 8000 and can go up to Rs 2, 00,000 with attractive interest rates.

Why it makes sense to apply for instant personal loan online?

It is quite eminent that most people when in dire need of finance might focus on availing cash as quickly as possible. Banking and credit unions still follow the tedious paperwork process which is time-consuming and also you might have to pledge for collateral if the loan amount is high. However, instant personal loans don't require any lengthy paperwork, several meet up and lenders don't emphasize more on credit history to sanction the loan amount. Plus, you don't need to pledge for any collateral because it’s a short term loan and can be used to immediate financial purposes.

It has a quick processing time

Conventional personal loans follow the procedure, the guidelines set by the bank or NBFCs to approve the loan. And it will take at least a fortnight to months’ time for the money to be credited your account. However, you can borrow money by downloading an instant personal loan app on your smartphone. All you have to is download an app, log in through your Facebook or Gmail account, key in few details such as income source, company details, name, cell number, tell them how much cash you require and how soon can you repay the money. That's it! Within a couple of minutes, these apps will do the algorithm and offer your instant loan amount with a particular interest rate. Once you e-sign the copy, an executive will come at your doorstep to pick the documents. And within 48 hours the money will be credited to your bank account.

Minimal documentation

While conventional personal loans would still require a pile of papers to be submitted to get your loan approval, the only paper you would require to sign would be your contract letter with FINTECH companies. Instant personal loans are completely digitalized and require minimum documents pertaining to your income, company, tax filing, address proof and photo identity both for salaried and self-employed and don't have to visit banking hours to submit the documents. You can download this salary advance app on your smartphones and apply for a quick cash loan, submit the document with just a few clicks anytime and from anywhere.

Easy and Convenient

In this day and age wherein we can buy everything online, why not avail quick cash loans to meet your instant financial needs? These loans might be considered as financial life-jackets for needy ones. These apps are user-friendly and most of them have inbuilt loan calculators to calculate the interest outgo, EMIs, and the principal amount you would have to repay to the e-lenders.

About This Author

Akash Limaye Joined: December 14th, 2018