Instant loans and short term loans are a type of emergency funds that can help during any kind of financial emergencies.
These are usually funds of small amounts and are approved without any collateral submitted with the lender.
Urgent need of money can arise in any situation, be it while dealing with some personal business, some disruption in the regular income flow of an individual, or for some other reason like wedding, vacation, overseas education, sudden medical emergencies, or home renovation.
What do you know about short-term loans?
Short-term loans are unsecured loans of a smaller amount compared to other secured loans like home loans or car loans. They do not require any mortgage and usually have a repayment tenure of 1 or 2 years.
These loans are approved quickly and credited to the bank account of the applicant.
However, it is important to understand that the short term here does not refer to the time needed for approval. Instead it refers to the repayment terms of these loans.
Who are eligible for short-term loans?
Although the eligibility of short-term loans can vary from one lender to another, the basics usually remain the same for all the lenders, especially the ones that are available online.
To avail of the loan, the applicant must be a citizen of India and aged between 21 years to 60 years.
One should have a profession and a steady source of income. The profession of the applicant should be running for at least one year.
In the case of a salaried individual, he must be employed with the current employer for at least 6 months. Individuals working in both private and public sector companies are eligible to get loans.
How to apply for short term loans and what documentations are needed?
For the application of a short-term loan through some app, one has to follow a few very simple steps.
First, the applicant needs to determine the amount he would need as a loan. Next, they can compare the loan terms and conditions of the different lenders on the app.
It is advisable that the applicant goes through all the pros and cons of the lenders and select one that can suit all his requirements at best.
Some of the factors to consider while comparing the lenders are their rate of interest, options for foreclosure of the loan, repayment terms, and the amount that they can approve in the loan.
Next, they have to upload the required documents and complete the documentation process, which in the case of short-term loans through the app, does not require many formalities.
The least documentation and formalities are the biggest advantage of the instant loans available in the loan apps.
The verification process begins next, which is completed almost instantly through the apps, and the approval is received.
Once the approval comes, the fund is credited to the applicant’s bank account instantly on the same day or the following day.
Best loan app in India:
Presently there are several loans apps in India that offers online loan instantly.
The popularity of instant loans has increased rapidly in the last few years owing to their easy application and disbursal process, which is evident from the growing popularity of loan apps in India.
Among all the apps that are available for instant short-term loans, Paysense is the best and the pioneer of the domain for a number of reasons that require some mention.
What makes Paysense the best loan app?
Some of the benefits of using the Paysense app are, through the app, one can apply for a loan amount of anything ranging between INR 5,000 to INR 5,00,000.
The application of the loan can be verified, approved and the fund is disbursed within 24 hours.
The loan applications through Paysense do not require any credit check. Hence people with zero or bad credit history can also apply and get approved for loans.
The repayment tenure of the loans in the Paysense app is very flexible and can stretch anywhere between 3 months to 5 years, while the rate of interest for the loans varies between 15.96% to 26% on average.
The documents required to get a loan from Paysense are Identity proof, address proof and proof of the person’s monthly income, and a photograph of the applicant, which can just be a selfie.
For the identity and the address proof, one can submit any of the documents like an ADHAR card, passport, or voter id card.
Moreover, Paysense also comes with an EMI calculator inbuilt with the app. Here one can calculate the monthly installments for the required loan amount and select a repayment plan that is the most comfortable for him.
For the repayment of the loan, there are a number of options to choose from. One can pay the installments using any of the digital transaction modes like debit card, credit card, net banking, UPI payments, and payments using the digital wallets.