A personal loan is a much sought-after remedy for unexpected expenditures that may arise for many reasons. In the current scenario of the COVID-19 pandemic, the possibility of requiring funds for medical treatment increases exponentially. Instant personal loans are the most efficient solution to this requirement. Private loans do not require any form of collateral, which means they are unsecured loans. If the borrower defaults on their payment, the bank would not have any collateral to seize to regain the loan amount. This makes them highly lucrative for those looking for quick cash to fund a one-time expense, even on a luxury purchase such as a new car or a family holiday.
Instant personal loans
Technology has played a massive role in the increase in personal loans individuals can make and reduce the time it takes to do so. Due to technology doing all the heavy lifting as lending and borrowing have been transferred to the digital sphere, individuals who previously could not avail of loan services now have access to instant personal loans through simple clicks. Most lenders in the industry now have online websites and portals open to the public, allowing them to apply for instant personal loans from their homes, provided they meet the required criteria. Additionally, users can also assess what amount of loan they qualify for and how many payments they will need for how many terms through a personal loan EMI calculator.
The application process
The application for an instant personal loan is a simple one and is as follows:
- Filling out the online instant unique loan application/portal with relevant information
- Submit required documents
- If the lender verifies the provided documents, one will receive a quote of the loan amount, EMI amount, loan term, etc.
- Once (and if) the individual accepts the amounts, the lender sanctions the loan.
Pros and Cons of a personal loan.
As commonly agreed upon, instant personal loans are great for one-time unexpected expenditures, as no collateral is required. Additionally, the application process remains simple, and requirements at the minimum, given that the loan is of a relatively smaller amount. Personal loans also offer decent interest rates, with the personal loan EMI calculator always a bonus. However, one must be careful because, as is with any loan, the borrower takes on the risk of having to repay the loan in the form of debt. If this debt is not repaid, there could be consequences. Alternatively, relying heavily on personal loans to fund one’s lifestyle could land them in a debt cycle, as they take out more personal loans to repay the earlier ones, and so on.
A personal loan is a perfect solution for short, one-time expenses. It can help individuals afford things they didn’t think they would be able to, as it allows them to, in one sense, stagger the payment for the commodity they are spending the loan money on instead of having to pay it off in one go. However, caution is always advised, as debt has an inverse relationship with financial health.