Loans are mainly taken to meet the instant financial obligation of a person or any organization. You may need a loan at the point of time of your life. There are different types of loans for your different needs. For example home loans to make your own house, car loan to buy a new car, education loan to pursue an educational degree, and so on. But the procedure of getting a loan is a bit lengthy. The lenders check your documents to check whether you will be able to pay the loan back or not. It may take several days. But there are some needs which don’t wait till the time your loan is sanctioned. In these situations, instant installment loans are the only solutions in those cases.
What is an Instant Installment Loan?
Actually, all the conventional loans that we know are the installment loans. You have to pay the amount during a certain time and in equally divided amounts every month or after a pre-decided time period. The amount taken as the loan is called the principal amount and the amount you pay monthly is called Equated Monthly Installments. There are certain companies that provide instant loans to the applicants and they don’t judge the eligibility criteria strictly. They basically approach you online and you also have to provide every detail through mail or online form. The amount gets disbursed into your bank account directly.
Who can Get These Instant Installment Loans?
There are some basic eligibility criteria to provide instant installment loans. They are as follows
- The applicant should be a salaried person or self-employed.
- If he is a businessman then the firm should be a sole proprietorship firm or a partnership firm.
- If the business is big then it should be a private limited company.
- Any Government employee.
- Doctors, engineers, architects, or business consultants.
What are the Pre-Requisites of a Loan?
Before the bank or any financial organization provides you a loan, they will definitely check for the creditworthiness of the borrower. This is why they go for a credit rating check. Now the credit rating is nothing but a score assigned to a person or any organization based on the capability of repayment of the loan. There are many national and international companies and agencies which provide credit rating services like ICRA, CRESSIL, and so on. The credit rating is very important to get instant installment loans.
Payment Terms of the Loans
When any organization is allowing you a loan to take, then they will definitely put some terms and conditions on you regarding the payment options of the loans. Most of the banks have a time period before which you can’t close the loan even if you can manage for the required amount. If you want to close the loan after 1 year then also the banks charge some amount as the pre-closure penalty. But in case of the instant loan providing agencies, there are few banks that charge the borrowers with the pre-closure penalty.