Financial scarcities do not come with a due warning. The uncertain nature of modern lifestyle demands access to easy finance in times of need. Our ever-evolving lifestyle also demands that we, as individuals keep up. And sometimes we might not be able to meet the financial requirements immediately. Other than emergencies, there sure can be times when we have strong desires to purchase something but lack the financial means to turn it into reality.
As a layman, what is it that you need at times like these? Some financial assistance that you can utilize on an immediate basis and repay with convenience as of when the time comes? You can meet such financial demands with an instant loan. Such loans can be taken for personal or business uses without specifying the end use. The intention barely matters for the lender as long as it’s legal and meets the guidelines mandated by law.
Earlier, people preferred traditional loan products but with changing times dynamicity kicked in, and everybody wants fast money. This led to the rise of instant loan. Instant loan are a form of a loan that offers the oblivion monetary support but at a very fast approval pace and absence of traditional documentation and approval processes. It also has many more benefits which we will talk about in the next section of this article.
Why Instant Loans?
Similar to the hint that lies in its name, instant loan intends to be immediate. It is almost like an advancement in the financial sector, which is strongly influenced by digitalization as well. This is because nowadays, the application procedures and KYC fulfilment have been completely digitized. Digitization has also curbed the overhead costs and made the work of lenders a lot easier and completely automated. Armed with powerful fintech tools, most online lenders are now able to process and approve loan applications in a jiffy. Let’s understand why instant loans are a big hit amongst borrowers.
1. Easy Application Process
The application process for availing instant loans is simple and completely online. You just have to shortlist an instant loan product that suits you the best and fill an online application form. Your instant loan is literally just a few clicks and a handful of minutes away.
2. Time is Money
Times of emergency do not pre-warn. Time has always been of the essence. This is exactly why you need instant loans in times of duress. The instantaneous nature of such loans serves your finance needs just as you want it to!
3. Collateral Free Loans
Instant loans are unsecured in nature which makes them collateral and guarantor-free service. This ensures that the borrower has nothing to worry about except his creditworthiness and the ability to repay the loan amount within the loan tenure. This reduces the pressure that a presumable loan usually carries to borrowers otherwise.
4. Quick Approval
Instant loans applications and documents can be submitted online. This causes no delay and quick processing of the loan application.
When you repay the instant loan on time or even before time, your credit score gets a boost. Besides the brownie points, it also enhances your creditworthiness and helps compensate for slight pitfalls from the past credit history, if any.
6. Pay Only for What You Use
There may be times when borrowers are unable to utilize the entire approved loan amount. In many cases, they are obligatory to pay for the entire loan amount. For circumstances as these, instant loans enable you to pay interest on only the specific amount that you have put to use and not the entirely borrowed amount. This helps you maintain a financially peaceful balance as well.
Since instant loans support spontaneity, the lenders need to guard their books as well and they do it by ensuring a thorough check on the borrower’s credibility and a host of other factors as listed below:
1. Interest Rates
Quality financial services often carry higher interest rates and service charges. That being said, the lender has to ensure timely repayment of instant loans, which by nature are unsecured loans. This is why higher interest rates are set on instant loans that act as determinants of security in place of collateral for unsecured loans like instant loans.
2. Credit Scores
Credit scores of borrowers improve as they repay the loan before or on time. Similarly, if you are unable to make the repayment on time, it can demean your credibility massively. And as this score decreases, it reduces your chances to get a loan approved for in the near future.
3. Financial Management
The purpose of the instant loan is to act as additional money when such is required in times of debt. As you keep paying your outstanding dues with the lent amount, do not forget about its own repayment because one blunder there could trap you into a vicious debt circle you wouldn’t want to be stuck amidst.
If you’re looking for an instant loan, head to NIRA’s website or mobile app on your smartphone and apply for an instant loan with an online application. It takes just 3 minutes to complete the online application and the approval is instantaneous. What’s best? You get the money credited to your bank account within a day or two.
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