3 Factors to Consider Before Availing an Instant Loan

When it comes to instant loans, the one factor which makes it a popular option as a source of immediate funds is the quick loan disbursal time. This is why they are aptly named as ‘instant loans’. If you have a sudden financial emergency that you cannot delay, then an instant loan is your best option. Thanks to a large number of loan providers available in India today (including banks, NBFCs, and other non-traditional companies) it is quite easy to get an instant loan online. However, the prospect of easy and fast cash shouldn’t lure you. We’ve listed out three factors that you need to consider before you take out an instant loan. Read on:

1. The Processing Time

The turnaround time offered by instant loans is the one thing that sets them apart from other types of loans. So, while choosing an instant loan provider, it is a good idea to first check how long it will take for you to have the funds credited into your bank account. If you approach a bank for an instant loan, you may be able to get the funds on the same day, provided all your documentation is in place. Companies that offer instant loans online may take longer (say up to 48 hours) to process your loan application since it involves certain back-end verification as well.

2. The Amount You’re Eligible For

While scouting for your ideal instant loan provider online (or otherwise), you need to check the maximum amount you can really borrow from them. Certain companies may offer large loan amounts, but not all lenders allow you to do so, especially if you’re a first-time customer. So, if a lender says that you can borrow ₹3 Lakhs, that may be true, but you may be eligible for only a quarter of that amount at first. Depending on how much you need (and how fast you need it), this is sure to influence your choice of loan instant provider.

3. Charges Other Than the Interest Rate

Pre-payment charges, processing fees, the various types of late-payment charges, service costs, and other administrative costs – you need to know all this information pertaining to the instant loan that you’re borrowing, before signing on the dotted line. Do not be fooled by how easy it is to acquire the loan, a loan is anything but easy-peasy money. If you’re taking up debt on your name, you need to know all the possible charges you may need to pay, apart from the interest rate.

Wrap Up

If the above points sounded rather obvious to you, you’d be surprised to know how many people enter the loan application process completely blind to these factors. If you’re looking to get an instant loan in a hassle-free and quick manner, you might want to check out KreditBee – a FinTech company offering personal loans up to ₹ 3 Lakh. Thanks to our 100% online process, you can get an instant loan sitting at home! There’s no need to step out – just download the app, complete your profile, and leave the rest to us. If you wish to learn more about our instant personal loans, write to us at [email protected] or simply call +080 44 292 200.