Versatile, simple to avail, and hassle-free application procedure – there are various benefits of instant personal loans. A personal loan is a good medium to fund your emergency needs. May it be any unplanned health condition or any big-ticket buy, a personal loan can fund all such needs. 

Top benefits of instant personal loan: 

Let us, deep-dive, at some of the benefits that a few of the best loan apps offer: 

Instant approval

By instant, we mean within the same day of the loan application. 

  • In comparison to one to two weeks for the processing of a regular personal loan, an instant personal loan like Cashe, MoneyTap, KreditBee, Money View, Early Salary etc., requires much less time. As an outcome, they are the greatest bet for mitigating your immediate cash or payment requirements. 
  • In case you have a strong credit history with a high credit score of 750, and above, then lenders would have no issue at lending you instantly. However, if you have a low credit score of below 750, then a few of the best loan apps offering personal loans in India may either reject or approve your personal loan application at a higher interest rate. 

Zero requirements for security or collateral

Personal loans are credit options that are unsecured which mean you do not have to offer any collateral for availing them. This is just the basic reason why it is simpler to take up personal loans than other credit options like loans against property, loans against security etc. However, being a customer, you should remember that an unsecured loan is riskier for the lenders. Hence the interest rates are usually on the higher end to meet the associated risks. 

Customizable loan repayment tenures

In most cases, when you take up an instant personal loan, flexible loan repayment tenures are offered. Thus, you can select the loan repayment tenure according to your convenience, subject to the lender’s highest loan repayment tenure.

Versatility

May it be for a phone purchase, a holiday trip abroad or for a house renovation, a personal loan can be useful for all personal reasons except if used for any speculative purpose. This freedom is not available in other credit options like an auto loan, home loan etc. Flexibility in availing of loans is one of the reasons for the growing popularity of personal loans. 

Forms credit score

Availing personal loans to meet any personal monetary requirement or emergency through banks or any of the best loan apps and their timely repayments helps elevate your credit score. As you repay your EMIs within the predetermined date, your credit score has a positive effect. 

Minimal documentation & simple to avail

One of the benefits of online or instant personal loan through best loan apps is the requirement for documents are minimal. Loan providers like Cashe, Early Salary etc., need only 3 documents, i.e., your identification, salary, and address proof, which can simply be submitted through the online mode. Not just this, the application procedure is even very easy, keeping in mind the convenience of the customer. Such loans can be opted for by seekers within minutes, and the loan amount is disbursed in the range of between Rs 5,000 and Rs 5 lakh, with loan repayment tenure going up to 60 minutes. 

Personal loan – Is there any tax benefit? 

Dissimilar to home loans, education loans, there are zero tax benefits on personal loans in general. However, in specific situations, exceptions might be there if the personal loan is being utilized for buying assets like gold, for home renovation or for business expansion. However, each of such cases is subject to distinct terms and conditions and might not be applicable for all. 

Major things to note when availing of a personal loan

Now that you have an idea about some of the personal loan benefits offered by best loan apps like cashe and banks, here are some of the crucial things that can assist you in selecting a suitable personal loan as per your preference: 

  • Make sure that the loan amount that is being availed is as per your repayment capacity. 
  • Compare the rate of interest from the reliable bank sites and select the one that suits you the most. 
  • Clarify all conditions before availing of the personal loan. 
  • Mostly, all the financial institutions and banks that offer loans charge the applicants with 1-time processing fees. In case you get charged with high processing charges, you will require paying a higher amount for your loan. 
  • If you do not make repayment of the EMI according to the schedule, lenders like Cashe and others might charge a default penalty. Thus, it is crucial to compare the default fees charged by distinct lenders. 
  • It is suitable to choose instant personal loan offering repayment flexibility in terms of part prepayment or prepayment towards personal loan amount, particularly if you intend to repay the loan before loan tenure ends. 
  • When looking for offers on instant personal loans from distinct lenders, including Cashe, make sure to consider the loan amount that is being offered. For instance, if you are looking to take an instant personal loan of Rs 20 lakh, you must just look at lenders that permit the applicants to borrow up to Rs 20 lakh. 

To conclude

Instant personal loans in nature are short term that you can make applications for, particularly when you want to avail convenient and easy funding options. You should know how they function, including eligibility needs, before making an application for one. The loan amount you can opt for is usually less, and they might sometimes come with a higher rate of interest. Personal loans are one of those, which is the most sought after. Here are mentioned 6 of the various benefits of personal loans. However, there are several more that contribute to their popularity. This is particularly true for personal loans from the lenders like Cashe. Not just are the rates of interest affordable, documentation needs are less, & you can take up a loan of nearly Rs 5 lakh.