In the face of unpredictability, having a monetary safety net is crucial. While your savings can be a great buffer, cushioning the impact of emergencies, you need not steer away from your financial plans and goals. At the time of such emergencies, you can always opt for a quick loan.
What is a Quick Loan?
These are short-term loans which allow the borrower to fulfil their short-term financial obligations and needs. This loan is usually disbursed within a couple of hours after the application is submitted. Usually, all the processes involved in getting such a loan are online and involve minimal documentation.
The proceeds from this loan can be used for various purposes. Here are some costs you can pay for with the help of a quick loan.
- Wedding Expenses
- Travel Expenses
- Medical Expenses
- Educational Fees
- Repaying Debts
Specific loans that cater to a majority of the aforementioned expenses individually, like a travel loan, do exist. However, the processes involved in getting these are long and complicated. A quick loan can help you get the required funds faster and much more easily.
Eligibility Criteria For a Quick Loan
The first step to applying for a quick loan is to understand its eligibility criteria. It is essential that you fulfil these requirements to get the loan easily, without much hassle. Here’s a list of some of the most common requirements.
- The applicant must be a resident of India
- The applicant must be at least 23 years old
- The applicant must be employed at the time of application
- The applicant must have a good credit score and repayment history
- The applicant must meet the minimum income requirements, fixed by the chosen lender
Documents Required For a Quick Loan
Now that you have learnt about the eligibility criteria for getting a quick loan, it is also important to keep the documents required handy. This makes the proceedings smoother and seamless. Here is a list of some of the documents you may be asked to submit when applying for such a loan.
- Identify proof: PAN card, Aadhaar card, Passport, driving license, voter ID, and so forth
- Address proof: Aadhaar card, Passport, driving license, voter ID, utility bills, rental agreement, and so forth
- Employment proof: ID card
- Payslips: 6 months
- Bank statements: 6 months
- ITR filings (for self-employed only)
- Photographs: Passport-sized
How To Apply For a Quick Loan?
With the documents in hand, it is now time to start applying for the loan. Here is a short guide to how an online quick loan application works:
1. Create An Account With A Lender Of Your Choice
You need to have an account with the lender prior to applying for a loan. Following this apply for a loan. To do this, provide your personal information and employment details, along with your income and previous credit details to the financial institution. You must also submit the documents that support the information shared with the lender.
2. Data Verification
The data you shared with your lender will be verified by the lender. The financial institution will check whether you are eligible to get the required loan on the basis of the data provided. They will further verify the documents submitted, supporting the data. This process is usually faster in the case of quick loans compared to most lending services and does not impact the disbursal.
3. Disbursal
Once your data has been verified, your loan application then proceeds towards the approval process. If you meet the required eligibility criteria, the loan is likely to be approved instantly. The sanctioned amount is then disbursed to your bank account almost immediately. You can then use the amount to fulfil your monetary requirements.
Things to Know About Quick Loans
Prior to getting a quick loan, there are certain things you should be mindful of. Here are some points to keep in mind when applying for such a loan.
1. Interest Rates
The interest charged on quick loans is usually higher compared to other traditional loans like personal loans or travel loans. This is because of its easy availability and rapid disbursals. Thus, it is important to check the interest charged on your loan prior to applying for it. This helps you budget and manage your finances better.
2. Hidden Charges
Make sure to check for any hidden charges prior to applying for a quick loan. Read the documents carefully and ascertain the complete cost of your loan prior to applying. This is essential to avoid falling into a debt trap. Pay close attention to the fine print and note down any additional charges that come with the loan like late fees.
3. Lender
Selecting the right lender is extremely important. Ensure that the lender is certified and has a good service record. In the moment of need, do not blindly trust a lender. Conduct thorough research before borrowing the money. Also, make sure that the loan terms offered by the lender are favourable and aligned with your financial goals. Having a good relationship with your lender can be fruitful in getting a loan that meets your requirements better.
4. Prepayment & Foreclosure
When applying for a quick loan, check whether the lender offers you a prepayment and foreclosure facility. This can help you close your loan before the end of the set tenure. You can save up on interest costs and become debt-free sooner with the help of this facility. However, in most cases, these services do carry a nominal fee, while some lenders offer this facility free of charge. Consider these costs when estimating your aggregate repayment costs for better budgeting and financial planning.
Rather than dissolving all your savings and investments during emergencies, opt for a quick loan. Get the required funds instantly and use them to fulfil any and all your financial obligations instantly. Do keep in mind the pointers mentioned above when applying for such a loan. Well, don’t wait any longer! Get the required amount instantly with a quick loan today!
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