Benefits And Features Of Instant Loans For Salaried Employees
Life is never
fixed and anything could happen when you’re least expecting it. From a medical
emergency to unforeseen wedding expenses to requiring additional funds for
sending your kids to a college exchange program, and more – sometimes a fixed
salary isn’t enough to cover those needs for extra cash.
An instant loan
can be a game-changer for those who don’t have access to quick funds. Most
banks and NBFCs require just proof of income and statements that show you have
a stable job before you can apply for them. There are many benefits to taking
instant loans for salaried employees and we discuss them below.
Benefits Of Instant Loans For Salaried Employees
Here’s a list of
the benefits, features, and why to consider taking a personal
loan for salaried employees.
· Quick Disbursals –
There’s a reason they’re called instant loans. The cash disbursal process is
quick and it can take just a few hours. Not everyone can wait for 1 to 2 weeks
during times of crisis which is where these come to the rescue.
· Minimal
Documentation – Not a lot of paperwork is needed to apply for instant
loans. Banks and financial institutions require borrowers to furnish just KYC
documents such as Aadhar Card, PAN Card, Proof of Address and ID proof. The
loan application can get approved on the same day if they submit these early.
Customers have to sign up on the website and fill in the application form in
order to apply for these loans. Once they upload the required documents, the
bank or organisation quickly verifies them and releases the funds.
· No Reasons Needed –
Most loan application forms make it mandatory to write a reason when it comes
to applying for loans. But instant loans are different and lenders understand
the varying requirements of the consumer. No reasons are needed to explain why
you’re taking instant cash and the added layer of confidentiality is another
reason why many salaried employees are opting for them.
· Completely Online
Process – The best part about instant loans is that you don’t have to
visit the bank or NBFC to apply for them. As long as you have the website
address or app, you can fill in the details and submit your application online.
SMS notifications and emails are sent as soon as your documents are verified,
prior to disbursing the loan. During medical emergencies when an individual
doesn’t have time to go to the bank for loans, this can be a life-saver.
· Low Interest Rates –
Instant cash loans don’t have high interest rates and a flexible repayment
policy. This makes them very convenient and since the interest rates are low,
paying back on time becomes easy.
· Build up Credit
History – For those who don’t have a CIBIL Score or credit history, these
loans are a fantastic way to start building it up. When you make the repayments
on time, CIBIL will log it in their database. In the future, when you apply for
personal loans or any other types of loans, the process will be much easier and
not take up much time.
· Get up to Rs 5
Lacs Instantly – You can get up to Rs 5 lacs in just 1-2 days if you have
the required documents and details. Instant cash loans start as low as Rs
10,000 and don’t need collateral security. Traditional banks aren’t willing to
give out large amounts without added clauses of conditions. This is one of the
biggest benefits of going for these types of loans.
Eligibility Requirements For Instant Loans
One can get an
instant loan with minimal paperwork and documentation. Basic eligibility
requirements are mostly the same across various financial institutions and
NBFCs. You should be an Indian resident and be aged between 18 to 65
years old prior to filing your application.
The most important
eligibility criteria are your income status, salary, and proof of your
repayment capacity. Make sure your bank slips reflect that you’ve been having a
stable income for at least the last 6 months. You don’t require any form
of collateral or security to apply for an instant cash loan online.
Cons of Traditional Loans
There are many
reasons why many consumers are moving away from traditional loans. Here are a
few of them:
· Huge processing
fees – Banks can charge huge processing fees and take forever to sanction
the loan amount. Most individuals who are facing an emergency can’t afford to
wait that long and pay exorbitant fees for the application.
· Too much time
needed – It can take up to 2-3 weeks for releasing the funds. Traditional
loans fail to meet emergency expenses and sometimes loans may not be approved
due to inadequate paperwork or verification documents.
· CIBIL score –
If consumers don’t have a CIBIL score, they can’t get approved for a loan. Most
banks have a high CIBIL Score criterion which makes it difficult to meet within
a short period of time.
· Fixed repayment
schedules – If you don’t know when you’ll be able to pay back, monthly
EMIs become difficult. Times of crisis can hit you financially and affect your
ability to repay. Banks don’t understand this and most traditional loans demand
that consumers make fixed monthly repayments. An instant cash loan provides
more time to pay back and gives consumers the option to avail lower EMIs. This
provides plenty of time for them to get through their situation, recover, and
pay back later.
· High Interest
Rates – When the tenure for repayment gets stretched out, banks end up
charging higher interest rates for these loans.
· Market
Fluctuations – The interest rates can change depending on the market’s
situation. If you don’t know what your financial status will be like in a few
months, it could impact your ability to make a repayment on time.
· Requires
collateral – Banks aren’t willing to disburse unsecured personal loans in
most cases. A collateral or co-borrower applicant may be needed to file a loan
application. This is inconvenient for many users and not a feasible option.
Conclusion
If it’s your first
time applying for an instant loan and you’re not sure how to go about it, you
can always talk to the company or lender. Discuss your requirements and explain
the details a bit before applying for these loans. Once you make your
requirements clear, they can guide you through the application process
step-by-step. And if you don’t get enough time to talk on phone, you can write
an email online and get a quick response.