Quick loans are unsecured and short-term loans provided in no time, specifically within few hours of application and approval of the loan. Other traditional loans such as Personal Loan and business loan etc take some time to process. However, fast loans come to the rescue when you face cash crunch are in immediate need of urgent cash loan. Some of the quick loans are provided in a day or two’s time, while most of the time, it takes just 24 hours to disbursal. With small-cash loans, you do not have to borrow from friends and family anymore.
At Loanbaba.com, you can find all information about quick loans and its types.
Types of Quick Loans in India
There are several types of quick loans available in India, and these options are mentioned below:
- Payday Loans or Small Cash Loans in India: A payday loans is a short-term loan (unsecured in nature), and is disbursed within 2 to 4 hours of loan approval. You can apply for payday loans apply and get approval within minutes. The U.S.P of this loan is the hassle-free procedure. The financial institution or lender usually charges a higher rate of interest as the loan is advanced without demanding collateral. Such loan is mostly offered to salaried individuals only, wherein the EMI is to be paid on the pay-check date until repayment.
- Same Day Loans: These loans are granted the same day of loan application. This credit system is best to meet emergency cash needs and requires only minimal documentation with no credit check. People with poor credit history or a bad credit score could be eligible to get this type of loan in short time. However, the interest rates of same day loans are much higher than regular loans.
- Quick No Credit Check Loans: There are quick loans offered that require no credit check. These loans are mostly chosen by those with bad credit history. As soon as the documentation needed is verified, the money is disbursed to the borrower’s bank account. The interest rate charged however, is very high compared to other short tenure loans.
- Credit Card Loans: You can take quick loan on credit card. Most financial institutions offer instant loans on credit cards that too at an affordable interest rate. The loan meets approval quick with no or minimal documentation. However not everyone can avail loan on all types of credit cards. Thus, it is advisable to check on the credit card you possess and the loan facility provided on it before making a decision of choosing the credit card.
Advantages of Quick Loans
Below mentioned are quick loan benefits.
- No Credit Check: As mentioned earlier, quick loans do not necessarily required the applicant to maintain a good credit score, since the loan can be disbursed without credit check.
- Speed of Approval and Disbursal: These loans are provided within 2 to 24 hours and at max 48 hours.
- Unsecured Credit Facility: Quick loans are basically unsecured loans, wherein the financial institution or lender does not require a security or collateral.
- Online Application: You can apply for quick loans online on Loanbaba.com.
- Minimal Documentation: To avail these loans you need only minimal documentation such as identity and address proof and probably income proof. Thus, the approval and disbursal process is also quick.
- Self-employed Individuals Can Apply: A quick loan can be availed by self-employed individuals in many cases.
- Non-existing Customers Can Apply: Even if you are not an existing customer to the financial institution with which you apply for the quick loan, you can still get the loan.
Disadvantages of Quick Loans
Below listed are the quick loan disadvantages.
- Higher Rates of Interest: The quick loans come with very high rate of interest. The rates are almost double of that applied on regular loans. Thus, these loans are considered expensive.
- Many Non-certified Lenders: As many people require urgent cash, there are more than just official banks, NBFCs or certified lenders offering the loan. You must beware of shady lenders who are not certified as it can be risky to borrow from them.
- Heavier EMIs: The quick loans are short term loans and are to be repaid in a few weeks to maximum 3 months. This means you have to pay heavier EMIs in limited time. If you are choosing a quick loan, look into the repayment tenure and associated conditions.
Features of Quick Loans in India
Below mentioned are features of Quick Loan, India.
Quick loans offered in India are different from that those offered worldwide.
These loans are not typically termed as ‘quick loans’ but carry different names and have different approval time-frames.
These loans however have simple documentation and lenient requirements.
The quick loans offered by the banks and financial institutions are different from the quick loans offered worldwide. There is no special kind of loans called quick loans in India but there are alternative loans with quick approval. These loans require have lenient requirements and simple documentation.
Quick Loan Alternatives You Can Apply For
Listed below are the types of quick approved loans offered in India.
- Personal Loan: As an alternative to quick loan, personal loan is the best. Most these loans are unsecured and require less documentation. Approval takes about 48 hours. Some of the personal loans can be approved the same day. You can apply for personal loan online at Loanbaba.com and avail special rates, especially senior citizens and women.
Eligibility Criteria for Personal Loan-
You can use free-of-cost personal loan eligibility calculator on Loanbaba to know your eligibility for loan. Consider the basic requirements for the loan, as mentioned below.
Salaried individual who is residing in India
Meeting the minimum age limit, which is usually 21 years age to 23 years of age
Minimum income requirement (Rs. 20,000 to Rs 25,000), as required by the financial institution
Documents required are basic identity and address proof along with bank statements, ITR, and salary slips
Personal Loan Interest Rates
The rate of interest of personal loan is set by financial institutions and usually depends on the repayment tenure, loan amount, repayment capacity of the applicant, credit score of the applicant etc. The personal loan interest rate starts at 10.99%.
Tips to Choose the Best Quick Loan
If you want a higher loan amount, then you can opt for personal loan than credit card loans.
Check and compare interest rate, tenure, loan amount offered by several banks and NBFCs in India at our website, before taking a decision.
The right kind of quick loan depends on your requirements, thus it is important that you understand what your financial need is before applying for personal loan with a bank or NBFC.
FAQs on Quick Loans
Below mentioned are the frequently asked questions about quick loans in India.
- Do you need collateral for personal loan?
When you apply for personal loan, you need not submit a collateral or security if the loan is unsecured.
- Are self-employed people eligible for personal loan?
Yes, professionals and self-employed people are eligible for quick loan. However, these loans are mostly advanced to salaried individuals.
- How are the EMIs calculated on personal loans?
The personal loan EMI is calculated taking into account the tenure, loan amount, rate of interest applied. You can use personal loan EMI calculator for free on our website to know the exact instalment to pay per month.
- Are Payday loans available in India?
Payday loans are serviced as small cash loan in Mumbai, Navi Mumbai, and Thane at Loanbaba.com.
- How can I apply for quick loan or personal loan?
You can apply for personal loan at Loanbaba.com through an online application process.