New Age Practices for Availing a Digital Instant Personal Loan

03 JULY, 2023

For a long time, traditional personal loans have remained a go-to option for many in need of financial help. However, now with the rise of technology, an increasing number of individuals are turning towards digital credit options owing to the convenience and comfort they bring. Explored here are the reasons behind the shift to instant personal loans, the distinct kinds of instant personal loans, and stepwise measures for availing an instant loan.

Reasons for the shift to digital personal loans

Convenience and speed: Instant personal loans provide convenience and unparalleled speed. With only a few clicks, you can apply for an instant personal loan from the comfort of your home or office. Opting for this option eliminates the need for undergoing time-consuming approval procedures and lengthy paperwork associated with traditional loans, saving time and effort.

Minimal documentation: Traditional personal loans often require extensive documentation like bank statements, income proof, address proof, etc. On the other hand, digital loans depend on advanced algorithms and alternative data sources to evaluate credibility. This lowers the need to provide a lot of documents, making it simpler for you to qualify for an instant loan.

24X7 availability: Unlike conventional banking, which is accessible only during fixed hours, instant borrowing is available at any time. This means you can access the loan from any location, whenever you need it. To do so, you just need to visit the online net banking section of the lender’s website, search for the "personal loan apply online" option and click on it. The instant availability of the proceeds addresses financial urgencies, such as the need to meet unexpected expenses or medical exigencies.

Here are some new-age instant personal loans that you may opt for in the case of a financial emergency

Preapproved personal loan: A preapproved loan is offered to you depending on the lender’s initial assessment of your credibility. Such loans are made available to you after conducting a preliminary evaluation of your financial profile and determining that you meet the basic loan eligibility parameters.

Payday loans: Such loans are designed to bridge the gap between your pay cheques and typically must be repaid within a few months. They are suitable for meeting your short-term financial mismatches.

Personal credit line: This kind of loan allows you to borrow proceeds as and when required, up to a specific credit limit. Note that interest is only levied on the amount used, making this loan option a flexible choice.

What are the steps you must conduct before you click on the "personal loan apply" option?

Evaluate your loan needs: Decide on the loan amount and purpose. This will assist you in selecting the correct kind of instant loan and ensure that you borrow only what you need.

Research lenders: Conduct in-depth research to figure out the appropriate lenders. Compare their interest rates, eligibility parameters, loan terms, and customer reviews to determine the most appropriate instant personal loan option based on your needs.

Gather documentation: While instant loans require minimal documentation compared to traditional credit options, you may still need to provide certain documents. These may include address proof, identity proof, income statements, and additional documents as requested by the lender.

Apply online: Visit the website of the lender to begin the application process. Fill out the application form properly, providing all the required details. Double-check the details to avoid any issues that could result in a delay in loan approval.

Use an online personal loan EMI calculator: Once your loan is approved, use an online personal loan EMI calculator to compute a suitable personal loan interest rate, EMI, and tenure based on your cash inflow and repayment potential. Doing so will help you avoid any personal loan EMI defaults in the future.

Ending note

The shift to digital personal loans from traditional loans is due to their convenience, speed, minimal documentation requirements, and 24X7 availability. By following the steps mentioned above, you can navigate the process of opting for an instant loan efficiently and smoothly. Note that to borrow responsibly, you must consider your repayment potential before applying for the loan.