Everything You Need to Know About Instant Personal Loan
An instant loan, also sometimes known as an instant personal loan, is a great way for people to gain access to immediate funds that can be used for any personal financial need.
Personal loans are a useful tool to get a lump sum of funds during times of need. However, the biggest drawback of traditional personal loans is their disbursement time. These loans usually take a few days to get approved and disbursed into the borrower’s bank account. This problem has been solved by instant loans that are now available from different banks and non-banking financial companies (NBFCs) in India. But before taking on such a loan, it is necessary to learn about everything there is to know about such loans and a few things to be watchful of when taking on such loans.
What is an instant loan?
An instant loan, also sometimes known as an instant personal loan, is a great way for people to gain access to immediate funds that can be used for any personal financial need. It may be to pay for a large personal event or gathering (like a marriage), or it may even be to finance a small-scale home-based business as a side venture.
The biggest difference between an instant loan and a regular loan is that the former is usually available digitally, whereas the latter requires a physical visit to the bank. To get such a loan approved by the bank, it is necessary to produce certain documents, such as an Aadhaar Card and a PAN Card, needed for the Know Your Customer (KYC) process.
Once the KYC has been completed, the loan usually gets disbursed online within a few minutes and is credited into the borrower’s bank account almost immediately.
Eligibility criteria for quick approval
There are many parameters that matter when it comes to quick approval and loan disbursement. Most banks’ loan portal, like FIRSTmoney by IDFC FIRST Bank, look at the age, employment status, monthly income, as well as the credit history of loan applicants before approving any type of loan. If you have a strong credit history, it can make your loan approval process much faster. Moreover, the personal loan interest rate also differs from person to person based on their credit history.
An excellent credit background tends to accelerate the processing time and the probabilities of approval. In the case of lenders, they usually seek individuals who are in the age range of 21 to 60 and have a stable source of income and a strong credit rating.
Being on a payroll with a constant monthly salary or demonstrating regular business revenue (with self-employed applicants) will elevate your chances of approval, as it explains to lenders that you are capable of handling monthly payments of an instant personal loan.
Understanding the costs of a personal loan
The personal loan interest rate will be one of the biggest costs that you will incur once you are identified as eligible, and the loan is granted to you. This is the percentage on the loan that the banks will charge you annually, so that they can be compensated for the amount you have borrowed. The interest on the best banks in India ranges between 10 per cent to 12.5 per cent on average, and the rates may be higher for NBFCs and FinTech companies.
Banks’s offerings like the FIRSTmoney 100% digital loan by IDFC FIRST Bank are normally characterised by competitive interest rates starting at 9.99% p.a., based on the eligibility of borrowers and the characteristics of loans, thus being one of the best banks for customers in terms of quick processing and affordable interest rates. Plus, with the IDFC FIRST Bank’s FIRSTmoney personal loan, you can enjoy various advantages on personal loans, including:
- Multiple on-demand loans.
- Disbursal in 30 minutes.
- Zero foreclosure charges.
- Quick approval on loans up to ₹10 lakh.
Final thoughts
An instant loan can be a practical and swift financial solution when emergencies occur, or life’s unplanned moments require cash on short notice. By understanding how your loan interest rate is determined and choosing a reputable bank, you can secure credit that fits your needs with clear repayment expectations. Always evaluate your eligibility, compare lender terms, and borrow within your means to ensure that short-term financing doesn’t become a long-term burden.