5 Things You Didn’t Know About Instant Loans in India

Recently, instant loans in India have proven to be a financial lifesaver for millions. Whether it's a medical emergency, an unexpected travel plan, or simply needing cash quickly, instant loans provide you with rapid access to funds with minimal documentation and hassle.

However, under the flashy advertisements and present-day ease of applications lies a world of unknowns that all borrowers should recognize.

1. Your Social Media Footprint Can Affect Loan Approval

Today's instant loan apps do not only care about your job title or income. They often use AI-enhanced analysis of your online activity and digital footprint to assess your ability to pay. 

This analysis can include: 

• Smartphone usage attitudes 

• Email verification behavior 

• Stability of personal information 

• Frequency of app usage 

Understanding of this makes it easier for lenders to build a wider risk profile beyond the traditional credit reports that we all know. 

Simply put, how you interact with your smartphone and online identity may simply impact your ability to get a loan approval, especially if you are a first-time borrower with no past credit profile.

2. You Can Get a Loan Even Without a Credit History

The biggest myth is that access to credit is entirely dependent on a credit score. 

Today, more and more fintech platforms are specifically targeting those people in the new-to-credit demographic - the ones that have never taken out a loan or used a credit card. 

They will use alternative evaluation methods, like:

• Digital bank statement reviews

• Asking for employment records through online databases

• Looking at payment data for utility accounts

This makes instant loans many times more available for young professionals, freelancers, and self-employed people. Platforms like Rupee112 were made for these kinds of users.

3. Flexible Repayment Options Are Often Available

Instant loans may seem inflexible, but that isn’t always true. Many online loan providers now have various flexible payment options that allow borrowers to select a term that meets their financial goals. 

For example, flexibility may include the following: 

• Choosing the repayment period

• Repaying early without fees

• Automatic deductions for convenience.

4. These Platforms Are Regulated, But Caution Is Still Necessary

Amid concerns about unethical conduct, the Reserve Bank of India (RBI) has established a framework for digital lenders, which is expected to observe the following standards:

• Have an association with RBI-regulated NBFCs

• State loan offerings clearly in the onboarding process

• Play fair and be responsible in the collection

• Include grievance redressal mechanisms.

With this said, that does not mean that all platforms comply. Therefore, it's important for users to:

• Verify whether the lending platform or partner NBFC is recognized by the RBI

• Check the reviews and ratings of the app

• Review the privacy policies before granting permissions.

5. Loan Disbursals Are Fast — But Not Automatic

It's all too common to see a claim of "instant disbursal in 10 minutes." Yes, that's possible under the right circumstances. 

But, once again, the speed of disbursal depends on things like:

• Completeness of your digital application

• Machine-based checks for eligibility

• Verification of the information that you submitted

For people with a verified profile who were returning borrowers, the processing time will be quicker. For first-time borrowers, the time taken will be a little longer since the background checks are also being done.

Wrapping It Up

Instant loan apps in India are changing access to short-term credit. They are hassle-free, tech-based, and they offer services nearly 24/7. Yet, behind the simple user experience is an ecosystem leveraging new-age data capabilities and AI to determine risk and ensure responsible lending.

If you are looking for a digital loan platform that embeds customer convenience and provides quick approvals, Rupee112 aims to do the same, using technology in a customer-first approach.