Instant personal loans: What are they and things you should know about? MintGenie explains
An instant personal loan is a form of unsecured loan designed for diverse personal expenditures, be it to pay off your hospital expenses, meet your vacation expenses, consolidate debt, or buy some fancy gadgets and equipment.
The interest rates may either be fixed or variable, contingent on the lender and your creditworthiness. The loan duration typically spans from three months to five years, although certain lenders may extend terms for larger loan amounts. Additionally, instant personal loans are unsecured, eliminating the need for collateral. This also means no guarantor is necessary, distinguishing them from certain other loan types.
Prominent banks such as HDFC, ICICI, and SBI provide instant personal loans. Furthermore, several non-banking financial companies (NBFCs) such as Bajaj Finserv, IIFL Finance, and Credy focus on personal loans. Additionally, platforms like BankBazaar, Paisabazaar, and PolicyBazaar assist in comparing loan choices from different lenders. For individuals new to loan applications, these platforms can serve as a beneficial starting point for evaluating various options.
Every lender establishes distinct eligibility criteria considering factors such as age, income, employment status, and credit score. Borrowers can utilize online eligibility checkers on the lender’s websites or aggregator platforms to obtain an initial understanding.
The digital transformation of India’s financial landscape has significantly simplified the process of acquiring personal loans. However, the multitude of choices can be overwhelming and might prompt borrowers to make impulsive decisions. Before venturing into the realm of instant personal loans, it is essential to conduct thorough research and examine specific
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