Everyone wonders how someone can get an instant Personal Loan, just like instant noodles, at a low-interest rate. But then there are financial institutions that have made it possible. Yes, it is hard to believe, but some lenders have a completely digital process that works instantly.
An instant money loan is a Personal Loan made available almost instantly to help with numerous financial needs. This is one of the most convenient and swift ways to arrange for funds when needed unexpectedly as well as for planned expenses.
You can use an instant money loan for various things, such as renovating or remodelling your home, buying a cool gadget you have always eyed, planning your dream wedding, or making some memories on that dream vacation. It is one of the best ways to help you through tricky times, like a medical emergency, sudden job loss or other unforeseen expenses. It is the ideal way to take care of your immediate cash requirements without dipping into your savings. Today, you can avail of an instant loan online without much hassle.
With some new-age lenders offering loans and free financial tools, such as an EMI calculator, getting an instant loan online takes minutes. And if you have done your homework and researched a little, you may also be able to avail these instant money loans at surprisingly low-interest rates. However, many factors and circumstances influence the rate of interest; be aware of the same and work towards improving them to get more favourable interest rates.
Steps to get an instant money loan at surprisingly low-interest rates:
1. Be clear about Your Financial Standing and Requirement
Before finalising a Personal Loan with a lender, you must be clear about your income and outflow. New-age lenders offer online financial tools such as the eligibility calculator and loan EMI calculator. This is the best way to get a clear picture of the rate of interest that will be levied and how much you will have to repay each month. Choose an amount you are comfortable with and work backwards to fix a particular loan amount. You can play around with this financial tool and choose a flexible EMI repayment tenure, amount, and interest to best suit you.
2. Ensure you have a Good Credit Score
The higher your credit score and past repayment trends, the lower will be your interest rate. This is because lenders charge a higher interest rate to borrowers with an unfavourable financial past. Make sure you have repaid all your previous loans on schedule and cleared your credit card bills. A high credit score points to high credibility and responsible credit behaviour, and an excellent financial past will help you negotiate better interest rates with the lender. There are basic practices that can help improve your credit score and, in turn, gets you a good interest rate:
- Make timely payments of your loans and dues.
- Maintain a 30% credit utilisation ratio which means only use 30% of the credit limit available to you – don’t max out your credit cards.
- Keep a good and balanced credit mix.
- Don’t initiate loan inquiries with multiple lenders simultaneously; they qualify as hard inquiries on the credit report indicating you are credit hungry.
- Last but not least, check your Experian report periodically, or especially before applying for a loan and check for discrepancies and get them rectified, if necessary.
3. Narrow down a Lender
You can check multiple lenders’ Personal Loan eligibility criteria and compare the interest rates offered by the various lenders. This is a great way to secure the best deal regarding low-interest rates. Once you have an estimated figure in mind, check out multiple lender websites and review their instant money loan offers. You can get the best interest rates by comparing the tenure and loan amount offered across lender websites. You can get a reasonably good interest rate with a good credit score and a steady flow of decent income.
4. Check Your Loan Eligibility
To get an instant loan online, you should have fulfilled the lender’s personal loan eligibility criteria and have all the required documentation ready. Without this, getting an attractive interest rate is next to impossible. Your salary or income per month, age, nationality, job profile, credit score etc., is key to getting a loan at an attractive interest rate. Make sure you have all this to prevent a loan rejection. A loan rejection will negatively impact your credit score, and lenders give loans at higher interest rates to people with low credit scores.
5. Be clear about how the Lender is calculating the Interest
Different lenders calculate interest rates differently. Just because they claim to have a low-interest rate does not translate into a lower interest amount. It is imperative to check the calculation technique and see how the lender determines the monthly interest amount. There is simple interest calculation or flat interest rate; then there is a reducing balance method of calculating interest. These ways will impact your monthly outflow, so be clear about that.
6. Be on the lookout for Seasonal Offers and Promotions
Most lenders introduce offers during the festive seasons or financial year-end time to encourage people to take more loans from them. Look out for such offers to get attractive interest rates or at least waivers of specific charges, such as processing fees, etc.
Once you are clear about all the above, getting an instant money loan online is not time-consuming. Due to the increased competition in the market, most lenders will offer competitive interest rates. Once you have worked towards improving your credit score and overall financial habits, getting a loan at a low-interest rate remains procedural.
All the information related to eligibility criteria, loan amount, interest rate, required documents, and EMI calculators will be available on the lender’s website.
Once you check the Personal Loan details of the lender, you can initiate the loan application process by filling out the loan application form online. Make sure you have all your documentation proof handy at this time – this would include KYC details (Aadhaar and PAN card), address proof, income proof (salary slips), account statement, and ITR of the past years.
Enter the details correctly and upload the scanned documents; the online application process is intuitive and seamless. With sophisticated software verification and documentation, authentication happens in real-time. Once your phone number gets verified via OTP, it just takes a few minutes before your loan is approved.