Last Updated on Jul 12, 2023 by Harshit Singh
What do you do when you encounter a situation where unforeseen costs arise? To navigate through such emergencies, you can immediately apply for a personal loan. There are plenty of credit instruments in India that offer personal loans within 24 hours. With exciting loan repayment plans to get an instant personal loan, deciding the best option is somewhat of a hassle, you must go through! But fret not; in this blog, we have listed four credible ways to get an instant personal loan within 24 hours.
Table of Contents
What is an instant loan?
Instant loans are a type of credit that enables individuals to obtain funds quickly and with minimal procedural requirements. This allows borrowers to receive immediate funds deposited directly into their bank accounts, with competitive interest rates compared to other loan sources.
Quick loans can be beneficial when there is an urgent need for money, such as covering student expenses, medical bills, urgent purchases, or costs related to marriage. Individuals can also avail of these loans when they require a lump sum payment and prefer to repay it in instalments, for instance, when planning a vacation or purchasing a vehicle.
4 ways to get a personal loan immediately
The four credit instruments that offer personal loans at enticing interest rates and repayment plans are as follows –
Banks
Through online banking, you can apply for personal loans. Banks highly promote these loans due to their appealing interest rates, streamlined documentation requirements, and quick processing.
Credit card
Were you aware? By utilising a credit card, you can obtain an instant credit loan. Access the bank’s mobile app and determine the maximum loan amount you can avail based on your credit limit. If the loan falls within your card’s credit line, you will receive instant approval, which will be credited to your account.
Buy Now Pay Later (BNLP)
If you don’t have a credit card, or your credit score is insufficient for banks to lend you the loan, you might look at the Buy Now Pay Later (BNPL) platforms. Through these platforms, you can pay medical bills or pay towards your vacation, like booking hotel rooms or flights. Also, through selective BNPL merchants, you can avail a loan of a small amount.
Loan against mutual funds
smallcase is introducing a groundbreaking opportunity for mutual fund investors, enabling them to secure loans against their holdings. This pioneering concept stands out for its convenience, as the loan amount is swiftly credited, providing investors with immediate access to funds.
Five things to Consider before applying for an instant personal loan
Before you settle down on a choice for an instant loan, it is advisable to compare the loans offered by different lenders and platforms. You can evaluate each loan proposition based on these five criteria –
- Interest rate: Compare the interest rates offered by different lenders to assess the impact on the overall loan cost as higher interest rates add up to higher loan repayment.
- Processing fee: Consider the one-time processing fee charged by banks or financial institutions, as a higher fee will increase your loan expenses.
- Default penalty: In case you’re unable to pay the EMI, consider the penalty charges imposed by lenders as a penalty for default.
- Repayment flexibility: Look for instant personal loans that provide flexibility regarding pre-payment or part-payment options, especially if you intend to pay off the loan before the designated tenure.
- Minimum and maximum loan amounts: Each financial instrument can lend up to a certain amount. Suppose you want a loan of up to Rs. 5 lakh; that kind of requirement can only be fulfilled by a bank. Therefore, consider the limitations of each credit instrument before applying for an instant loan.
Conclusion
Whether looking for an instant loan to pay off a debt or an emergency bill, you can instantly avail a personal loan in India. But before applying for an instant personal loan, compare interest rates, processing fees, default penalties, repayment flexibility, and minimum/maximum loan amounts to make an informed decision and choose the best option for your financial needs.
FAQs
How is the EMI calculated for an instant loan?
The EMI (Equated Monthly Instalment) for an instant loan is calculated based on factors such as the loan tenure, loan amount, and interest rate. For example, if the amount of loan is Rs. 1,20,000, with an interest rate of 10% to be repaid in 12 months, then the EMI will be –
Total interest = Loan amount*Interest rate = 1,20,000*10/12 = 12,000
Total loan amount = Principal amount + total interest = 1,32,000
EMI = Total amount/Loan Tenure = 1,32,000/12 = 11,000
How will I receive the disbursed loan amount once my application has been approved?
Typically, the disbursed loan amount will be transferred directly to your bank account upon approval of your loan application. The loan amount will be accessible for your use as per your requirements.
As an investment fanatic, I’ve dabbled in early-stage startups, mutual funds, gold, stocks, smallcases, and real estate to identify which assets generate the highest ROI. At Tickertape, I’m dedicated to presenting my learning and providing insightful suggestions to help my readers make sound investment decision.
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