There are many people who are against taking loan. They feel taking loan is easy but repaying is difficult and also an expensive affair. Thus such people fulfill their needs only on their savings and don’t apply for loans. But sometimes unavoidable situation arises like medical emergency where funds are required urgently and this need cannot be seized. In this case instant loans are available to meet the need of the hour.
Instant loan means the loan is available very quickly that is within 24 – 48 hours. Also the formalities or documentation is minimal. Instant loan is a short management tool that helps to meet the urgent need. There are various other names by which instant loan are popularly known such as:
- Fast payday cash
- Payday advance
- Payroll advance
- Short-term cash loans
- Instant payday advance
- Cash advances.
Instant loans are short term unsecured loans as no security is required. The time period for repayment is generally fortnight. Also the lenders don’t look into the credit history of the borrower. Not much of formalities are involved in Instant loans. Hence the risk of default for the lenders is high and therefore the rate of interest is also high.
You can also make an online application for instant loan which is a secured type of loan. i.e. you have to place some collateral with the lender. Collateral depends on the amount of loan taken. Money lenders offer instant loans online, though the number who can is growing rapidly.
There are certain criteria placed by lender which is to be met by the borrower before getting the loan sanctioned. They are as follows:
- Provide the details of an active checking account
- Details of current employment
- Must be atleast 18 years old
- To prove that he/she is in the current job for specific period
The lenders by collecting this information secure themselves that the borrower has regular income and will be able to repay the loan.
Thus by providing instant loans the lender solves the problem of many needy borrowers. In India, there many banks and financial institutions who give instant loan to the needy borrower. Though the rate of interest is high and the repayment span is short, but the need of the hour is fulfilled instantly by the instant loan.