The Rise Of The Instant Personal Loan

There has clearly been a rise in the demand for instant personal loans till now. Over the last few years, the general public has been bombarded with attractive interest rates, flexible payment options, and most importantly, a quick and hassle-free approval process that doesn’t require much documentation. This is especially true of the millennials, who has taken to online personal loans as a means of funding for their needs, ranging from travel expenses to college fees to recreational costs.

With the novel coronavirus pandemic it is an ideal ground for online and instant personal loan givers to thrive, as getting these loans normally does not require any physical contact. Let us explore further to get a better idea of the surge in instant personal loan applications.

Also Read: Availing Personal Loans Just Became Super Easy with Digital Lending
 
No collateral needed: One of the major reasons for the uptick in user preference for instant personal loans is that it is collateral-free, allowing quick access to funds without any hassles.

Factors Propelling the Sector Forward

The biggest factors propelling the growth of instant loans are related to the ease, convenience and speed of the whole process. Here is a quick look.

No collateral needed: One of the major reasons for the uptick in user preference for instant personal loans is that it is collateral-free, allowing quick access to funds without any hassles.

Quick access to funds – Traditionally, applying for loans would mean standing in long queues with mountains of paperwork and then waiting for days for the approval to come. However, now you can apply instant personal loans online from the comfort of your home. Just fill in the form and you are done! You can have access to funds within 24-48 hours of applying.

Apply for a loan on the go – 100 percent online, instant approval isn’t clickbait or hyperbole. The emergence of various instant personal loan apps has made it a reality. You don’t even have to be home. You can now apply for a personal loan online through an app while travelling.

Digitized application- Need a personal loan? Apply online. The process is completely digitized and reduces scope of any human error, thereby, making the entire process quick and hassle-free.

Meet financial exigencies without worry – Emergencies seldom come with a warning, and when they do, you most invariably need instant money. Instant personal loans are the best ways to meet such emergency cash requirements. With quick approvals, you no longer need to wait days or weeks before your loan is sanctioned.

Flexible repayment options – Online personal loans come with flexible repayment tenures, ranging from 12 to 48 months, with easy repayment modes like ECS, PDC etc. Pre and part payment are also an option. This makes them more attractive to the consumer.

Easy eligibility criteria –Traditionally, financial institutions offering personal loans have stringent eligibility criteria that requires you to have a spotless credit history and high credit scores. In fact, a lot of personal loan applications are rejected on these grounds. The new age lenders are ready to give loans to individauls with less- than- perfect credit scores as long as you have the necessary documentation and fall under the minimum income bracket.

Also Read: Loan Against Property vs. Personal Loan
 
Conclusion
It may be interesting to note that the largest chunk of people taking personal loans belong to the Gen X (38-50) and Gen Y (25-37). We are talking of two generations who like to go for what they want and are tech-savvy, matching up perfectly with the basic DNA of the personal loans, i.e. personalized, transparent, quick. As opposed to the earlier generations, Gen Y and Gen X are ready to take personal loans to cover a wedding or a luxury vacation, buy a gadget or invest in home decor, pay credit card bills or simply to meet emergency cash crunch situations.

Bottom-line: Needing only minimal documentation, a simple digital approval process, and lower eligibility standards, instant personal loans are the best bet during crunch situations. If you want to avail a personal loan online, make sure you enquire about the interest rates and repayment options. If you want to know more about instant personal loans, click here.