What is an Instant Loan - Why is it Better than Other Loans?

Picture this scenario; it’s the end of the month and some unexpected expenses crop out of nowhere. The clock is ticking but you don’t have the funds to meet your financial requirements. You have no other option but to borrow money.

In situations like these, your friends and family might have your back. But an instant personal loan is a guaranteed support system that will provide the financial assistance you need. Whether you need cash for a medical emergency or a last-minute trip, it will answer your requirements in no time!

Keep reading this blog to explore what is an instant personal loan and why it is the perfect option to meet all your big and small financial requirements.

What is an Instant Loan?

An instant loan is the money that you can borrow from lenders to meet any of your planned and unplanned financial requirements. Usually, these loans are unsecured loans, which means you don’t have to provide any assets like gold, jewellery, shares, etc. as security against the money you borrow. And as the name suggests, you can get access to this money very quickly, ensuring that time isn’t a barrier when it comes to meeting your needs.

You can get instant loan now by completing a simple application process by entering your basic details like name, phone number, email address, PAN, etc.

Keep reading to find out more about how an instant loan works.

How Does an Instant Personal Loan Work?

You can get quick access to money by completing an instant loan application with a lender. Different lenders have different application processes. On the Zype personal loan app, you can apply for a loan in less than 5 minutes by submitting your basic information like your name, email address, phone number, PAN, etc.

After you have successfully completed your application, the lender will assess your credit profile and information to calculate eligibility for your loan. If you fit in the instant loan eligibility criteria, you will get approved for a loan amount. If you’re taking a personal loan from Zype you can get approved for a loan up to ₹5,00,000 in less than 60 seconds.

You will then need to accept the loan offer to receive the loan amount in your bank account. This can take up to days. But with Zype, you will receive the loan amount within 24 hours. You can use this loan anywhere you like and pay it back with interest according to your repayment plan.

What Makes an Instant Loan Better than Others?

Digitalization has transformed the way people borrow money, making instant access to loans possible. There are certain features of an instant loan that meet specific pain points of borrowers, making it superior to other loans available in the market.

Feature

How it works

Collateral-free loans

Most instant loans are unsecured loans. This means you don’t have to provide any security against the money you borrow, making it a more convenient option.

Online Process

Everything from the loan application process to disbursal is 100% digital. You only need to submit the required documents and information to complete your application. On Zype, this process takes less than 5 minutes!

Quick Approval and Disbursal

These loans are called instant loans for a reason. The time taken to approve and disburse the loan is relatively less, making it an instant solution. On Zype, you can get approved for the loan in less than 60 seconds and receive the loan amount within 24 hours.

Flexible repayment tenure

When you take an instant loan, the term of borrowing is more flexible. With the option of choosing among multiple repayment tenure, you can choose an EMI plan that fits your budget.

Eligibility Criteria for Instant Personal Loan

To complete your instant loan application, you have to meet the eligibility criteria of the lender. One of the good borrowing practices is to check instant loan eligibility before you even apply for the personal loan.

While an instant loan is quick, easy eligibility can make it quicker. This is how Zype has made it possible:

1) Age: You need to be 18 years and above.

2) Nationality: You need to be an Indian with a valid PAN and Aadhaar card.

3) Employment Type: You need to be a salaried individual.

4) Income: You need a minimum monthly income of ₹15,000

Documents Required to Apply for an Instant Loan

After you have completed your application, the lender will assess your credit profile and documents to determine your loan eligibility and offer you a credit limit. While completing your application you will have to submit your identity documents, KYC proof and income details.

Also Read: Documents Needed for Personal Loan

Need instant loan? Apply instantly without any document uploads or paperwork. Here’s all you need:

1) Mandatory Documents:

You will need your PAN and Aadhaar number to complete your application and your KYC process. (Physical copies not required)

2) Real-time Selfie Verification:

After you have successfully completed your application, you have to do a real-time selfie verification.

3) Income Proof:

If you want to apply for a higher credit limit, you have to submit your bank statement for the last 4 months.

What are the Different Types of Instant Loans?

Every individual looking for an instant loan has a diverse set of financial requirements, credit history and bank balance. And the good news is that with the numerous options available in the market, credit is accessible to everyone.

Whether you’re new to credit and need money in an emergency, or someone with multiple credit cards looking to borrow money, there will be an instant loan available at your fingertips. Because the different types of instant loans are designed keeping all these factors in mind. And while instant loans serve the basic purpose of meeting any financial requirements quickly, they can be categorized into 5 types depending on the lender and features.

1) Short-Term Personal Loans (STPL):

Short-term personal loans are a convenient solution for people who are facing a month-end cash crunch. As the name suggests, you can borrow a small loan amount for a short-term to meet your needs and pay it back in a short tenure. There are many lenders and NBFCs that offer this.

2) Personal Loans:

Personal loans are the most common type of instant loan that is helping millions of Indians meet their diverse needs, every single day. You can conveniently take a personal loan using a loan app. Zype is such an app that offers personal loans up to ₹5,00,000 starting at a 1.5% interest rate.

3) Top-Up Loan:

If you already have an existing loan with a lender and want to take an additional loan on top of that, you can consider taking a top-up loan. Apply instantly for this loan as the lender will already have your information.

4) Loan against Credit Cards:

There are many credit card providers who can extend loans against credit cards. The credit limit depends on multiple factors like credit score, repayment history, credit utilization, etc.

5) Loan Against Savings and Insurance:

This loan is also known as a demand loan. In this, you can take a personal loan against financial instruments like insurance policies, savings, etc.

Features and Benefits of Taking an Instant Loan from Zype

No collateral:

With Zype, you don’t have to provide any security against the money you borrow. This is because all Zype loans are unsecured loans.

Easy Application:

With no document upload or paperwork, you can complete your application in less than 5 minutes. All you need to do is submit your basic information like name, phone number, email address, etc.

Instant Approval:

After you have completed your application, you can get approved for a personal loan up to ₹5,00,000 in 60 seconds.

Quick Disbursal:

After you have accepted your loan offer you will receive the loan amount directly into your registered bank account in 24 hours.

Flexible Repayment Tenure:

Paying back your loan on Zype is as flexible as borrowing it. With multiple personal loan repayment options, you can choose a tenure of 3, 6, 9 or 12 EMIs.

Affordable Interest Rate:

The interest rate you’re charged on your personal loan depends on many factors like your credit score, repayment history, monthly income, etc. On Zype, you can get personal loans up to ₹5,00,000 starting at 1.5% interest per month.

Also Read: Personal Loan Interest Rates & Charges

How to Apply for an Instant Loan Online?

On Zype, you can apply for an instant loan online in these 6 simple steps.

1) Download the Zype app from PlayStore/AppStore and create your account by completing mobile OTP.

2) Add your PAN number along with some other basic details like name & phone number to complete your application.

3) Get approved for a credit offer within 60 seconds based on your profile.

4) Add your Aadhaar number & selfie verification to complete your KYC to unlock your credit line.

5) Select your desired loan amount & EMI option.

6) Get instant loan directly to your account within 24 hours.

Conclusion:

An instant loan is a bridge between you and all your financial requirements. No matter what your situation is, you will never catch yourself wishing you had instant access to money.

The increase in the number of lenders and loan apps has further made it easier to fulfill any financial requirements.

Need instant loan? Get instant loan now! Just download the Zype app from the PlayStore/Appstore and complete an application to get personal loan up to ₹5,00,000 in 5 minutes.

Frequently Asked Question

Is An Instant Loan Good?

An instant loan is best suited to meeting any urgent cash requirements quickly. Since most instant loans are unsecured loans, there’s no restriction on the end usage of this money.

Need instant loan? With Zype’s easy application, instant approval, and quick disbursal you can get instant access to loans up to ₹5,00,000

Who Is Eligible For An Instant Loan?

While different lenders have different eligibility criteria for extending an instant loan, there are some common requirements. The borrower should be 18 years or above, and they should have a valid PAN card, KYC documents and a steady income.

What Happens If We Don't Pay An Instant Loan?

Missing your EMI payments could lead to negative consequences like penalty charges and late fees, a decrease in credit score and recovery calls from lenders.

What Happens If I Miss One Emi Payment?

If you miss one EMI payment you may have to pay a penalty charge on your outstanding amount. Along with that, you may also get recovery calls from lenders.

What Are The Benefits Of An Instant Loan?

The benefit of an instant loan is beyond the fact that you can meet your urgent cash requirements quickly. There’s more:

· No Collateral
· 100% digital process
· Instant Approval and Quick Disbursal
· Flexible Repayment Options
· Easy Application
· Affordable interest rate

How Will I Receive The Disbursed Loan Amount Once My Application Has Been Approved?

After you have completed your application and accepted the loan amount, you will receive the money directly in the registered bank account with the lender.

How Can I Increase The Chances Of Getting My Loan Application Approved?

If you have a high credit score, a clean repayment history and a stable monthly income, your chances of getting your instant loan application approved automatically increase.

Can I Pre-Close The Loan Before The Completion Of The Loan Repayment Period?

While there are lenders who let you pre-close a loan before the completion of the repayment period, there could be some additional charges on it.
On Zype, there are no additional charges associated with pre-closing your personal loan.

How Does The Emi For An Instant Loan Get Calculated?

You can use this formula to calculate your EMI:

E = P x R x (1+R)^N / [(1+R)^N-1], where

P is the principal amount
E is your personal loan EMI amount
R is the monthly interest rate
N is the no. of months of EMI payment

You can either use this formula or quickly find out your EMIs using Zype’s personal loan EMI calculator.