Instant Personal Loan is a Personal Loan where you don’t need to provide any hard copy of the documents to procure the loan as the entire process is completed only from application to loan disbursal.
These loans fall in that category of loan, in which people get their loan approved really fast with a condition of paying them back in installments with a certain amount of interest starting from 10.99%.
With the rising needs and expenses, an Instant Personal Loan is a boon for the present generation wherein they could enjoy their life with a regular earning with no burden of high-interest rates and insecurity. Nowadays, Instant Personal Loans are available with every bank and that too through a hassle-free process. For example TATA Capital Personal Loan can be availed instantly with minimal documentation.
Let’s have a look at some reasons to obtain an instant Personal Loan:
- A very low prepayment penalty
A pre-payment penalty is a charge, which is imposed by the lender on the borrower if he pays the loan before the tenure ends. However, when you are going for an Instant Personal Loan, then it costs you a very nominal penalty of 1-2%. In this case, you don’t need to worry about the high penalty imposed by the banks and other financial institutions on you.
- The fast processing
An Instant Personal Loan with less paperwork makes it a very quick process. These days one could avail the benefit of an Instant personal Loan within 72 hrs after completion of the verification process. Moreover, even some financiers in the market like TATA Capital Personal Loan provides instant online approval with three easy steps.
- Offers tax benefit
Everyone wants to save their tax as much as possible. There is a provision under Section 24 of the Income Tax Act that you can claim tax saving against an Instant personal Loan, if the amount has been invested in construction or purchase of Real Estate, or for Business purpose. The maximum tax deduction amount allowed under this section is 2 Lakhs. However, one needs to keep the proofs and documents ready regarding the same.
- The loan is provided at a fixed rate of interest
Unlike Home Loans that come with floating interest rates, Personal Loans have fixed interest rates that remain unchanged throughout the loan repayment period. Thus, the borrower doesn’t need to worry about the variation in the instant personal loan interest rate while repaying the loan in the form of Equated Monthly Installments (EMI).
- No fixed tenure for repayment of the loan
When you are borrowing a loan, you are always worried about the deadline by when you have to repay the loan. However, Personal Loan can be repaid conveniently within 12 to 60 months, thus, reducing your debt burden.
- Easy repayment options
Earlier, when people had to repay their loans, there was always a hassle of depositing the check or cash in their bank for the installments every month. However, now with digitization you can simply pay your EMIs online through bank transfer or NEFT. You can also set up a direct debit option or an ECS (Electronic Clearing System) option linked to your bank account, which will automatically debit the agreed EMI from your bank account on a fixed date. That way, you will save the hassle of remembering the due dates.
- No need to disclose the reason why you are borrowing a loan
While going for an Instant Personal Loan, you have the full right to avail the loan for any purpose. Besides the advantages of a low interest rate, it offers the freedom to the borrower regarding the use of it. The bank or the borrowing agency won’t even ask you about where and why you are using your loan.
Instant Personal Loans come as the solution to many of your problems. When you are going for an instant Personal Loan you must keep in mind that the money you have borrowed is required to be paid off.