Imagine that you’ve had an emergency situation, and the process was so quick that it was difficult for you to manage the finances.
In such kind of emergencies, instant finance is needed. Despite the urgency of funds, it is important that you restrain from making financial decisions that you might regret later.
In order to make wiser decisions, it is essential for you to have complete knowledge and understanding of the funding options during a financial crisis. This will ensure that you choose the best funding option that matches your needs and financial capability to repay.
What Is Meant by Instant Finance?
Instant finance loans are the kind of loans that require the least amount of documentation and are approved in a minimal time frame without the showcase of assets. The process is not time-consuming at all and is very convenient as compared to other traditional loans.
The Features of Instant Finance Loans
Every type of financing option has its own set of features. Let us shed some light on the features offered by instant finance loans.
- The application process is very easy, and you can apply even when sitting on the couch in your room or on the chair in your office.
- Instant finance loans can get very fast approval. This means that they also have a chance of getting approved on the same day of application.
- They do not require you to showcase your assets hence solving the problem for many individuals.
- The loan amount can be up to 1 million. However, it depends on the lender you’re borrowing from.
- They can typically last between 62 days to 1 year, so you can choose a period in which it becomes easy for you to pay off the loan.
- If you have a good credit score, your chances of getting a better interest rate would automatically boost.
What Are the Different Types of Instant Finances?
Before getting instant finance, you should be well aware of the types of instant finances that are offered. This would surely help you quite a lot in making an informed decision.
- Short Term Personal Loans
Short term personal loans come in the form of a loan which can be as low as a few hundred or a few thousand. These kinds of loans are considered to be ideal when dealing with the end of the month financial crises. You can avail of short-term personal loans by applying online or visiting the lender/bank.
- Top Up Loans
Top-up loans can be availed to get extra funds over existing loans such as a home loan. Since your lender/bank will already have all of your documents and details, it will be easier to process this loan.
- Loans Against Savings and Insurance
A number of banks offer this kind of loan against small saving instruments such as insurance policies etc. This loan is also given the name of a demand.
- Loans Against Credit Card
This type of loan is often offered by the providers of your credit card. The loan’s approval and the loan amount may depend upon the repayment history and the credit card limit. The process is simple, and the funds can get disbursed in a short time span.
What Is Eligibility Criteria Applicable to Instant Finance Loans?
Even though it is relatively easy to apply for an instant finance loan, some terms and conditions apply. In order to prevent your application from being rejected, you need to keep these points in mind.
- Credit Score
Any loan that you apply for required you to have a good credit score for the application’s fast and hassle-free approval. The same is the case with instant finance loans. You are advised to have a credit score of 750 or above if you want to get your hands on the best deal in the market.
RELATED: Where To Get Your Free Credit Score
Age is another factor that affects the application approval for an instant finance loan. It is mandatory for the borrowers to meet the age requirements specified by the lender. However, these age limits may vary based upon whether you’re a salaried individual or a self-employed individual.
Yet another factor that has an effect on the approval of the application of instant finance loans is the occupation of the borrower. Instant finance loans are offered to both salaried and self-employed individuals. However, if you do not have a source of income, you won’t be able to get an instant finance loan.