How instant loans have become popular among borrowers
In fact just like personal loan, the instant loan also have tenures of upto 5 years giving enough breather to borrowers in repaying their debt.
Since fintech firms have gained popularity in India, 'instant loan' has become attractive mode of borrowing. According to Aditya Kumar, Founder & CEO Qbera, instant loans have become so popular that they’ve even, to a fair degree, overshadowed the popularity of credit cards. Just like personal loans, instant loans also have tenure of up to 5 years, giving breather to borrowers to repaying their debt. Subsequently, there are fintech lenders who also offer instant loans for short tenure such as from 3 months and go up to 1 year. Kumar explained that applicants are required to meet a minimum income criterion and satisfy the lender’s internal credit norms that usually include a minimum credit score and a clean repayment history.
Here are some factors that make instant loans sought after property, as per Kumar -
As a potential applicant, when you fill your details in the online application form, your credit report is instantly pulled from the bureau, and an algorithm goes through several aspects in your credit report and evaluates your creditworthiness in line with the lender’s internal credit policy.
In simpler terms, your credit score, repayment history and other parameters such as your total outstanding credit balance and number of credit accounts are studied to assess your overall creditworthiness and repayment capacity. All this happens in under a minute, after which you’ll receive instant approval.
The entire process of filling your loan application and submitting your documents can be done online, thanks to technological advancements in the Fintech lending space. Once you submit your documents (KYC documents, salary slips and bank statements), they are digitally verified on the very same day, after which you’ll receive a customized loan offer. The loan offer will ideally contain your sanctioned loan amount, the interest rate on your loan, and other applicable fees and charges.
The total sanctioned amount might not be exactly what you’d requested for, as your credit health is what ultimately determines your loan amount and interest rate associated with your loan.
Once you accept your loan offer, you can expect to receive your funds in less than 24 hours! As incredible as this sounds, Fintechs have made it possible.
Tenures stretching up to 5 years:
You can choose a tenure that perfectly suits your needs - tenures on instant personal loans stretch up to 5 years. If you have existing credit accounts and want to consolidate your debt, you can opt for a longer-tenure, lower-Emi scheme that will most certainly fit your repayment capacity.
Loans for mid-level income professionals and those with lower-than-prime credit scores:
Instant loans offered by Fintech lenders are not just meant for the cream of customers with the best of credit health and the highest of incomes. Even individuals with lower-than-prime credit scores and those with mid-income levels can apply and qualify for instant credit in India.