In today's times, when there is a sudden need for money, everyone wants to avoid the hassle of long bank lines and paperwork. In such a situation, it is common to see the claim in the advertisements of digital lending apps and pre-approved personal loans that one can get the loan in two minutes. Is it really possible to get a loan so quickly or is it just a marketing ploy? In this article, we will know in detail what is the truth of instant loan, who is eligible for it, what documents are required and what is the complete process of applying.
When a financial institution or bank claims to give a loan in two minutes, the technology of advanced algorithms, digital data verification and artificial intelligence works behind it. This means that if your CIBIL score is excellent, you are already a customer of that bank and your bank account is with the same institution, then the bank checks your credit history immediately. In such cases, pre-approved loans can be transferred directly to your account within two to five minutes. However, the process is not that fast for every common user or first-time loan taker, as risk assessment and document verification may take a little more time for new customers.
The eligibility criteria for this type of quick loan are extremely strict. First of all, the age of the applicant should generally be between 21 years to 58 years. It is important for the applicant to have a stable source of income, whether he is employed in a company or an established businessman. The most important factor is your CIBIL or credit score. If your CIBIL score is 750 or more, your chances of getting an instant loan increase significantly. Additionally, your past financial record should be clean and there should not be any past dues or loan defaults.
The verification of documents during the quick loan process is completely digital. For this you do not need to go to any bank branch. Among the main documents, first of all, Aadhaar card and PAN card are required as identity proof. After this, bank statements or salary slips of the last three to six months are asked to verify your financial position and income. Along with this, sometimes electricity bill or passport may also have to be uploaded as address proof. All these documents are uploaded to the app or website in digital format, which is verified by the automatic system in a few seconds.
If you want to apply for an instant loan, the process is very simple and user-friendly. First of all, you have to go to the official mobile app of the trusted bank or NBFC of your choice or visit their official website. After going there, you have to select the personal loan section and enter your basic information like name, mobile number, PAN number and monthly income. The system then instantly checks your loan eligibility based on your CIBIL score. After confirming eligibility, you have to select your loan amount and repayment tenure. Finally, you have to complete the e-KYC process by uploading your digital documents, after which the loan amount is transferred directly to your bank account.
It is equally important to take some necessary precautions while availing a quick loan. Since such loans are available very quickly, many apps charge very high interest rates and hidden charges. Before applying, please read the complete information about interest rate, processing fee and repayment schedule. Take loan only from those financial institutions which are authorized and secured by RBI. Paying EMIs on time strengthens your credit score, so that you can easily get bigger financial assistance in future without any hassle.