A medical emergency can strike anytime. Your salary can be delayed by a week. It is in a situation like this that you need an instant loan. While such situations don’t come up with prior notice, there are ways to tackle them. With the help of certain apps, it has become extremely easy and quick to not just apply for the loan but to get the money transferred to your account the same day. With the plethora of options available online, it is essential to check the pros and cons of applying on a said platform, making sure they’re trustworthy. Hence, when you see the option of applying for an instant personal loan online, it’s important to ask yourself these 5 questions before taking the plunge.
Do you need the money or can you wait?
This might sound like an obvious question; however, many people fail to consider it. There is no harm in taking as much time as you want, considering a loan is a big responsibility. If you have a genuine emergency, you should go for a personal loan. However, if the money can be arranged by next week or some of the dues are already there with you, you would want to wait before taking a loan. Taking a genuine need loan feels totally different compared to one that was in a hasty decision, and your future self will be grateful for having taken the time.
How much do you need and how much are you entitled to?
When using any of these instant loan apps, one of the biggest mistakes people make is that they apply for more than what they need because the fastest instant loan app approves a higher amount. For example, if you only need ₹15,000, you should borrow exactly that amount rather than taking 30,000 just because you can.
Do you know how much you will have to pay?
Although EMIs might seem attractive, it’s important to consider the rate of interest as well as the duration along with the fees associated with availing the service. A trustworthy lending partner will provide a Key Fact Statement before finalizing the deal, and it’s better if you read it thoroughly before approving the application rather than just skimming through it. A loan that mentions the Key Fact Statement is more trustworthy as compared to one that just mentions low EMIs.
Will you be able to repay the outstanding amount with ease?
This question can help you decide the amount and/or duration of the EMI in case you are considering an instant loan. The best way to answer the question is to look at your monthly income alongside expenses to see if you can afford to make another EMI payment. Ideally, your total EMIs should be around a percentage of your monthly salary; however, if you are having trouble paying another monthly instalment, it’s better to wait before applying for this one.
Is the lending partner reliable?
Speed is one thing; however, it’s important to make sure the company is reliable before downloading the app and availing of the services. Ask yourself a few questions like: are their terms and conditions clear?, do they have a KYC procedure in place (PAN, Aadhaar and bank details), and do they mention their partners for disbursal? A trusted and reliable partner will have all the KYC procedures in place, be transparent about everything involved with the disbursal of funds, and know whether their partners are NBFCs or banks. Digital lending in India is handled by NBFCs, and it’s better if you know who the lending partner is as opposed to them being unclear about the same.
Each of these questions can be asked quickly; however, the impact they have on the experience of applying for an urgent loan is immeasurable. For anyone who is looking to make an intelligent choice while availing of this excellent financial service, these questions can be a great guide.
If you are one of those people who are looking for a stress-free and quick financial solution, you can apply for eligibility on InstaMoney. We can help you get an urgent loan of ₹5000 to help you with your needs. It’s just a matter of a few clicks to see if you are eligible for a loan with transparent terms and conditions so you know what to expect.
Frequently asked questions
Final Thoughts
An instant personal loan online is one of those incredibly useful financial services today. A genuine need can arise anytime, and an instant personal loan has been made to help people in times of need. However, although technology has made it easy and quick to apply for a loan, people fail to consider various factors while doing so. Ask yourself if you have an immediate need, if you understand the terms and conditions clearly, if your monthly income allows another EMI, and if the lending partner is transparent about everything. With that being done, an instant personal loan can become much more than just a quick fix and, more importantly, a useful tool for managing your finances.
