Unforeseen expenses, such as medical and educational expenses, can occur at times. Such expenses can badly impact your monthly finances, and hence, the only way to tackle them is to lend money. Quick loans can provide necessary financial relief in urgent situations, but it’s important to understand the terms and interest rates associated with them. To enhance your chances of approval for future loans, consider strategies to boost credit score, which can lead to better rates and terms. For effective methods to improve your credit standing, you can find valuable resources at the website to guide you on your financial journey.
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There are several types of loans that you can take. The easiest and fastest loan is a quick loan. But now you may wonder what a quick loan is. This article will guide you about quick loans in detail. So, let us begin!
What is a Quick Loan?
A quick loan is a short-term loan that can be obtained instantly, sometimes even on the same day you apply. It doesn’t need any collateral. In fact, the entire sum of the personal loan is directly deposited into your account in a single transaction. Moreover, the repayment process is usually done in EMI.
Features of a Quick Loan
Some features of a quick loan are as follows:
1. Processing Fees
Lenders charge fees on quick loans for application handling.
2. Interest Rates
Due to their fast disbursement, quick loans can have higher rates. Interest rates also depend on your credit profile and the borrower you choose.
3. Instant Loan Disbursal
You can get a personal loan in less than 10 minutes to an hour, depending on the platform you are using to get the loan. The quick dispersal makes it ideal if you have an urgent requirement of funds.
4. Flexible Repayment Tenures
Quick loans offer flexible repayment tenures that range from 3 to 24 months. This provides you with the flexibility to choose a repayment schedule that suits your financial situation.
5. 100% Collateral Free
Quick loans are typically unsecured and, hence, do not require collateral.
Eligibility Criteria to Apply for a Quick Loan
The procedure for applying for a quick loan might be simple. Still, to improve your chances of acceptance, you must fulfil some qualifying requirements. They are as follows:
1. Age Limit
Candidates must fall in the age group of 21-60 years old.
2. Employment and Monthly Income
Candidates must earn over ₹10,000 monthly, indicating repayment ability.
3. Citizenship
The applicant must be an Indian citizen. This ensures legal jurisdiction in the event of any disputes.
4. Bank Account
Most quick loans are deposited directly into a bank account, so an active account is typically required.
Documentation for a Quick Loan
To secure a quick loan, you need to submit certain documents. The required documents are:
1. Identity Proof
You can provide identity proof via a passport, driving licence, or Aadhaar card. It serves to verify your identity.
2. Address Proof
Documents like utility bills, rental agreements, or passports can serve as proof of residence. This verifies your current residential address.
3. Income Proof
Some borrowers may require you to submit documents like salary slips or tax returns to check your repayment ability.
4. Employment Proof
Some platforms may also require you to furnish an employment letter or payslips if you are a salaried individual and business documents for self-employed to ensure you can repay the loan.
Benefits of Quick Loans
There are several benefits of securing a quick loan. Some of them are:
1. Convenience
The entire application process for a quick loan can be done online. You can apply for a loan anytime and anywhere without visiting a bank.
2. Flexible
The terms of a personal loan can be adjusted and negotiated. You even get the flexibility to choose the repayment tenure based on your income.
3. Raised Credit Rating
Repayment of quick loans on time can improve your credit score and increase your chances of getting approved for a loan in the future.
4. Transparency
A quick loan agreement clearly states all the terms and conditions, including interest rates and fees. This helps you understand what you are getting into and avoid any surprises.
Steps to Apply for a Quick Loan
Applying for a quick loan is an easy process that can be completed online, making it convenient and time-efficient. Here are the steps to apply for a quick Loan:
1. Go to the Website
Open the website of the digital lending platform that you are applying to.
2. Sign Up
Sign up on the lender’s platform using your mobile number.
3. Enter Details and Check Eligibility
Next, provide your basic details, such as your PAN number, date of birth, monthly salary, etc., to check your eligibility.
3. Verify Profile
Upload KYC documents, including identity, address, and income proofs for verification.
4. Provide Bank Details
Provide your bank account details where you want the loan amount to be disbursed.
5. Choose Loan Amount and Tenure
Decide the loan amount you require and the tenure over which you can comfortably repay the loan.
6. Loan Disbursal
Upon approval of the application, the loan amount is disbursed into your bank account.
Factors that can Impact Your Quick Loan Approval
Securing a quick loan approval can be influenced by several factors. Some of the factors are:
1. Credit Score
Your credit score represents your creditworthiness. A higher credit score can enhance the chances of loan approval.
2. Income Stability
Lenders prefer borrowers with stable incomes. Regular incomes assure lenders that you have the means to repay the loan.
3. Debt-to-Income Ratio
This ratio is computed by dividing your monthly debt payments by your monthly income. A lower ratio indicates a good balance between debt and income, which can favour your loan approval.
Conclusion
A quick loan can be a valuable help in times of need, but it’s crucial to understand all the loan-related information before taking it. Moreover, if you are looking for a reliable digital lending platform, then you should consider platforms like KreditBee. It offers a transparent loan process with flexible repayment terms and a quick approval process. Visit Kredit Bee today and find the right loan for yourself.
