Dhanteras is a time for gifting as is Diwali. Dhanteras is today, October 29 and Diwali is on October 31-November 1. This is the time when Indians spend a lot on showering gifts on their near and dear ones. The problem is this year Dhanteras has come at the end of the month and it is possible that many would not have much cash in their bank account to buy gifts.
Worse, today is the day and if you haven’t bought anything, you actually have a few hours to make a purchase. So, what’s the solution? Well, there is a helpline known as instant loans. Let’s have a detailed look at what these loans are and how one can access them. However, the standard warning is that it can easily turn into financial poison if you are not able to make full repayment in a relatively short time frame.
Know who offers instant loans
Almost all major banks offer instant loans. It’s a category of personal loan that is offered online without undertaking a single visit to any branch of the bank. And if you papers are in order and repayment capability beyond doubt, the transfer of funds into your account can be in a few minutes that leaves you with some time to rush out, race against the clock and make that purchase.
Instant loans are unsecured loans. The application can take place online or through a mobile banking app. The applicant needs to type in some basic details such as name, contact details, employment details and income and the amount one needs to borrow. KYC details are essential for which one can submit Aadhaar and PAN. The credit score is extremely significant at this step. If the score is above 750, it can quickly secure a sanction and disbursement.
Beware of these pitfalls
While the benefits of an instant loan – easy application, quick disbursement, zero collaterals – are obvious, there are pitfalls that one should be aware of. The first and foremost is high interest rates which offer the bank the cushion to take that extra degree of risk of lending so quickly. The repayment period can be shorter than traditional loans and has to be extinguished within the stipulated time. Else the credit score will go for a toss that will handicap you when you might be in an emergency situation. So weight all your options before falling to the lure of an instant loan.
