Loans are something that provides you with financial support in your time of need. There are many different types of loans. All the loans are meant for some definite purpose and are named accordingly, like car loans, home loans, education loans, etc. But personal loans are not meant for specific purposes but rather have multiple uses. You can apply for an instant loan whenever you need money in an emergency. Several different purposes are fulfilled by personal loans, including wedding expenses, vacation expenses, debt consolidation etc.
Personal loans are short-term, unsecured loans which mean no collateral is required to obtain a personal loan. You need to repay the amount within the agreed time period, and it is beneficial in an emergency situation as the funds are made available to you in a short time. Instant personal loans are offered by many financial institutions, both banks and NBFCs (non-banking finance companies).
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Various types of Instant Personal loans
Instant personal loans can be applied for many reasons. There are almost 11 different types of instant loans, which are as follows:
- Wedding loan
- Travel loan
- Vacation loan
- Pension loan
- Home renovation loan
- Festival loans
- Debt consolidation loan
- Agricultural loan
- Medical emergency loan
- Consumer durables
- computer/ mobile phone loans
A few of them are explained here
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Wedding loan:
Nowadays, maximum people dream of having a luxurious and grand wedding. Due to the ongoing trend of a lavish weddings, specific patterns are being set up for weddings in India, like destination weddings, designer outfits, excellent photo shoots, gifts, etc. All these luxuries of marriage will always require lakhs of money. Looking at the existing trend, many lenders have started selling personal loans for a wedding. It is a kind of instant personal loan. You can avail of the loan from any trusted lender suitable for you and can use it to fulfil your grand wedding requirements. This loan is sanctioned within a day and is so helpful.
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Medical loans
As we all know, life is precious, so in times of medical emergencies, nothing is more important than saving the life of your near and dear ones. But the all-time availability of the liquid amount is not possible for everyone. So the last option that you are left with is to take a loan from a financial institution.
Medical loans are a kind of personal loan, and it provides you with an online application facility. The process to purchase this loan is simple and easy, as you can apply for personal loans online on the lender’s website. Even the documentation procedure can be done online through the lender’s website or via mail. The loan is sanctioned faster, as automated system and algorithms are used that saves your time and manual effort.
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Travel loans
Now, it is widespread for every individual to dream of lovely vacations. Everyone wants to travel to their dream destinations. But affordability is a problem for many. However, this can be overcome with the help of instant personal loans that you can avail of to travel, whether to foreign or domestic destinations. These loans are unsecured, that is, no collateral is required, and short-term loans where you get the loan in very little time, almost within a day. The complete process of availing of the loan is online, making it simple and convenient. It is just essential you should fulfil the eligibility criteria to avail of the loan.
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Education loan
Education is crucial in this competitive world to grow. Awareness of education is increasing day by day, but money is usually a hurdle in their path.
In comparison to educational loans that demand collateral, instant loans for education are collateral free. The amount borrowed can be used to pay the tuition fee, books, and anything required for academics.
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Pension loan
For retired individuals, it might be challenging to meet all their expenses, especially medical bills. The availability of personal loans allows retired individuals to cover their expenses. This is a special type of loan as it is available just for retired individuals. As it is a special type of personal loan, its eligibility criteria are also different from other types of personal loans.
This loan is available to only those retired individuals who get a pension regularly. The loan amount can be 7 to 10 times the pension amount drawn in the month in the preceding month of the loan application.
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Debt consolidation loan
This type of online personal loan is usually purchased to pay off your previous loan. This is generally done by people if they are getting some lesser interest rate loan compared to their current expensive loans like credit cards. Hence people take personal loans at lower interest rates and pay off their high-rate loans. The interest rate for such debt consolidation personal loans is no doubt higher compared to those secured loans yet cheaper than the credit cards’ rate.
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Agriculture loan
An agricultural loan is provided to the farmers to meet their expenses for farming. This loan is provided at a lower interest rate to farmers and they also get the benefit of repayment tenure, as it is kept flexible.
The documents required for an instant personal online are significantly fewer. The documents required are:
- Address proof
- Identity proof
- Income proof
- Bank statements
- Income tax return for last year
Here paperwork is not needed as the entire process works online.
Conclusion
The interest rate may be higher for a personal loan when compared to other types of secured loans. Still, personal loans are helpful in many cases and have many advantages over other types of loans that may compel you to apply for an instant loan as it allows you to fulfil your needs in various aspects of life, from enjoying luxurious wedding functions to overcoming medical emergencies. The interest rate and terms and conditions usually vary from lender to lender. So it is advisable to compare the lenders before you apply for an instant loan in order to get the best deals.
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