FAQs You Must Know About Instant Loan Processing

During emergencies, nothing helps more than instant cash. But how do you get it? Have you heard of an instant loan? No? Then, this FAQ is for you. Why not read the blog to learn about instant loans and more?

What is an instant loan?

As the name suggests, this is a credit amount that is made available to borrowers with a moderate or high credit score. This loan is disbursed almost instantly to the borrower's account post approval.

How can I get a personal instant loan?

You need to search web portals that offer instant loans. You can apply for an instant loan if you have a valid bank account linked to the website for fund disbursal.

Can I take multiple personal instant loans?

There are no legal limitations concerning the number of personal loans an individual can take.

How much time do I get to repay a personal loan?

The exact time frame for loan repayment depends on the lending agency. Generally, the maximum period is around 6 years, especially for repayment of personal loans.

How easy is it to get instant loans?

Instant loans are completely paperless, and the entire process is carried out electronically, including loan disbursement. It is quick and hassle-free, and helpful during urgent emergencies.

What is the effect of instant loans on my credit score?

All electronic loan processing is routed through the credit bureau. Therefore, your credit score will get adjusted accordingly. Timely repayments will elevate your score, whereas default payments will lower it.

How do you apply for an instant loan?

You must have a bank account, your PAN, Aadhar, or any other identity proof. The whole process for instant loans is conducted online. You must attend a video call with the lending agency and show them the required documents for loan approval.

Is a lump sum repayment option available for instant loans?

Yes, you can pay a lump sum payment to decrease your loan amount, or you can also prepay the entire loan amount before the scheduled repayment deadline. However, you must check the terms and conditions of repayment when applying through a specific lending agency, as some lending agencies charge a penalty for prepayment of loans.

Do I repay the loan from the account where I received the loan?

No, it is not necessary. If you are a frequent internet banking user, you can repay the loan from any account where the balance is available.

What is the interest rate on an instant loan?

The interest rate for instant loans varies considerably across the multiple loan-providing sites available on the internet. The instant personal loan interest rates are often higher than other loan products that nationalized banks directly offer.

What to do if the instant loan account is not closed?

Once the outstanding loan amount reaches zero, the loan is automatically closed on the same day. However, if there is any outstanding amount, the loan won't close.

Can I get an instant loan if my credit score is poor?

It is difficult to get an instant loan with a poor credit score. As a borrower, you may offer collateral for instant loan approval. It is possible to get shorter repayment terms with higher rates of interest when you apply for instant loans with a poor credit score.