The number of people availing an instant loan witnessed a rise of up to 20.4% from 17th February 2017 to 18th February 2018. Owing to its collateral-free facility and instant approval, such advances are highly preferred to cater to immediate financial emergencies.
With the hefty sum it provides along with a prolonged tenor and no end-usage restrictions, instant loans are ideal to fill various financial gaps.
However, there are certain aspects that you must keep in mind to avoid debt or misuse of your loan such as timely repayment. Paying your EMIs on time will help you avoid hefty late payment fees and accumulation of debts.
To avoid defaults, it is necessary that you are aware of specific information such as the EMI payments date and the EMI amount. To help you keep a track on your payment dates, financial institutions offer you instant loans app that shows your transaction history, repayment date, EMIs and other related details.
Besides, you can also gather information on instant personal loans and apply for the same on the app. However, before you apply, there are certain factors that you should check to avoid any discrepancies with your credit within the tenor or even after.
Discussed below are some of such factors that you should consider before applying for such instant loans –
- Loan limit
Before applying for a loan, make sure that you ask your lender or use their loan app to know about the loan limit they offer. You can avail personal loans of up to Rs.25 lakh depending on your financial stability.
Besides, it is advisable that you analyse your source of income to ensure that you do not fall short of the EMI amount and default on payments.
- Prepayment and foreclosure
To lower your outstanding dues, you can choose to prepay or part pay the loan amount and reduce the principal. Besides, if you have the required funds in hand, you can also choose to entirely clear your outstanding loan amount and foreclose it.
While you make such prepayments or foreclosure, you are required to pay a minimal fee. To avoid the burden, make sure that you inquire your lender on such charges. Alternatively, you can also use personal loan apps to gather such information before opting for payments of this sort.
Before approving your loan application, lenders initiate KYC verification with the help of your documents. It is essential that you keep such documents handy to induce faster approvals and disbursal. To view the list of the documents, you can check the website of your lender or their instant loans app.
- Eligibility criteria
To apply for a loan, you are required to meet specific eligibility criteria such as holding a CIBIL score of 750 or above and belonging to the age range of 23 to 55 years, etc. You can gather all such information on the official website of your lender.
- Approval and disbursal time
Personal loans come with instant approval and faster disbursal feature. The amount of such easy loans can be credited to your account within 24 hours.
- Maximum loan tenor
It is crucial that you are aware of the maximum loan tenor to plan your repayments and manage your finances. There are lenders that let you choose a loan tenor ranging up to 60 months.
Besides, you should also consider asking about the interest rate at which your lender offers credits. Interest rates will affect your monthly instalments.
Hence, it is best that you know the interest rates and other applicable charges before applying.
Such details will be available on the respective website or the instant loans app of your lender.
For example, apps like the Bajaj Finserv Experia app help you manage all your investments, loans, credit cards, etc. with ease.
You can also make your EMI payments, download credit card statement, lodge request, raise a query, view details of your closed loan accounts, etc.
You can also use its notification facility to be notified as and when the repayment date arrives.
With this online loan app, you can also check pre-approved offers. These pre-approved offers are available on several financial products including home loans, personal loans, and business loans.