Various lending institutions, leveraging advanced technology, aim to provide instant access to funds to consumers in the form of quick personal loan. One of the key drivers of such gratification is that small loans are the most sought-after loans by individuals. These small loans have witnessed an increase in consumers and contributed about 50% of the personal loan segment in the lending market. A report by TransUnion CIBIL reveals that individuals in the age group 26 – 41 years marked the bulk of small loans. Instant loan mobile apps are adding to this rise in the number of borrowers.
How to Apply For Instant Personal Loan – 4 Simple Steps
You can make an online application for a quick personal loan of Rs. 50,000 in four simple steps:
- Register a Mobile Number
- Provide Applicant’s Personal, Bank, Income and PAN Details
- Enter Loan Details, like loan amount and tenure
- Upload Relevant Documents
Check Eligibility Criteria with the Lending Institution
The borrower needs to meet the following eligibility criteria for quick personal loan:
– The applicant must be an Indian citizen.
– The age limit is 21 and 65 years.
– The lending institution needs a minimum monthly income of Rs.20,000. For Mumbai and Delhi residents, this minimum limit is Rs.25,000.
– Most lenders prefer an applicant with a credit score of 750+.
– The total work experience required is twelve months; in the current company, it should be six months.
Relevant Documents
Individuals can get an instant loan of Rs.50,000 against minimal documents by completing the eKYC process on the lender’s official website or using its personal loan mobile app. It saves time and effort. You will need to submit the following necessary documents to make an easy online instant loan application:
– Identity Proof
– Residence Proof
– Signature Proof
– Previous six months’ bank account statements of the applicant
– For salaried employees, the last three months’ salary slips or Form 16
– For business persons, business establishment proof, acknowledgement copy of the Income Tax Return (ITR), and past two years’ balance sheet.
Important Aspects to Consider
-
Find Suitable Repayment Tenure
A flexible repayment tenure allows you to repay the loan at your convenience. Many NBFCs offer flexible repayment tenure of 12 to 60 months. Apply for a loan with a suitable repayment tenure considering your cash flow.
Try to apply for a shorter-term loan to save on interest costs and repay the loan sooner.
-
Avoid Multiple Instant Loan Applications.
An individual should only make one loan application at a time. It can hurt your credit score because it is seen as a credit-hungry attitude and one of the factors in getting rejected for a loan. Loan rejections will further decrease your credit score.
How Can a 50,000 Loan Be Helpful?
A small personal loan can be helpful in many cases, including:
-
Credit Card Bill Payment
Credit cards are used widely to make small or big purchases. The cost of purchases can add up rapidly to your credit card bills due to a delayed EMI and the high-interest rate applicable. Individuals prefer an instant personal loan to avoid late penalties. You can pay off your credit card bills instead of just making the minimum bill amount due to a lack of funds.
-
Shopping Requirements
There can be numerous occasions when you need to go shopping, like a wedding or a close one. You can apply for quick personal loans of Rs. 50,000 to meet such shopping requirements.
-
Fulfil Your Travelling Goals
You would never want a lack of funds to come between you and your travel plans. Therefore, an instant personal loan is an ideal solution. A loan of Rs. 5,000 may not be sufficient for a world tour, but it can help you spend a memorable time to realise further travelling aspirations.
-
Medical Bills
Medical emergencies can strike at any time. In case you are pressed for funds, a small instant loan with renowned NBFCs is a solution.
-
Increase Your Credit Score
If you do not have a credit history or a low credit score, a small loan can help you add to your credit history; thus, you can boost your credit score. Make sure you repay the loan timely.
Thus, personal loans are ideal for meeting your instant financial requirements. With renowned NBFCs, you can get the required finances at as low as an 11.99% interest rate.
Additional Read: How to Sell Your House Fast in McKinney