Personal loans with pre-approval are insta loans offered to selected customers who have previously interacted with the lender. The primary benefits of insta personal loans are that it requires only the minimum amount of documentation. To be eligible for an insta loan facility, you only need a good credit record and repayment record. As a result of the rapid growth in the banking industry and the emergence of non-banking financial companies in India, many of these institutions are now offering this type of loan facility to increase the sale of loan products and to meet the urgent financial needs of clients.
Interest rates on insta personal loans
The main benefits of insta loans are that they are typically offered to consumers with good credit profiles and are usually offered at lower interest rates. However, a lender’s interest rate may vary from one to another. By comparing the interest rate provided by non-banking finance companies and leading banks, you will get a good idea about the insta personal loan rates offered by your financial institution.
The interest rate on an insta personal loan may vary from one lender to the next, so you should perform a loan offer check before taking out a loan.
Features of an insta personal loan
- Lowest processing time
You qualify for a loan with the least processing time because you already meet the requirements for eligibility. Once all the relevant information has been verify, it may not take more than a few minutes to a few hours for your loan to be disburse.
- Repayment flexibility
You can choose your repayment tenure for an insta loan between 12 to 60 months, according to your convenience.
- Low-interest rates
Since most of these loans are offer to individuals with a good credit history and track records, you can expect these loans to come with competitive interest rates that are generally lower than average personal loan rates.
Things to keep in mind before applying for an insta personal loan
- It is important to note that insta loans are actually ‘invitations to apply’ offers, so they are valid for a specific period only. To qualify for the offer, the customer must apply within the specified time frame.
- Ask the lender about all the applicable fees, such as processing, prepayment, foreclosure, etc., that will apply to the transaction.
- Compare other offers for insta personal loans so you can make an informed decision.
Benefits of insta personal loans
Quick funding or instant funds
If you are eligible to receive insta loans, it makes sense to have them available when you need urgent funds to meet your financial needs. Upon completing the verification process, the loan will be approve and disbursed within a few minutes. You can use this loan for any personal or professional purpose.
Competitive interest rate
Your credit history is essential to check if you are eligible for an insta personal loan offer. Because you have a clean repayment history, the lender can offer you the loan at a competitive interest rate since you don’t fit into the category of a lender-risk or credit-risk borrower.
Minimum or no documentation
There is no need to worry about the documentation if you are an existing customer eligible for an insta loan. The lender will already know your KYC details, bank account details, and income information.
A paperless loan application process
The primary benefits of insta personal loans are that they are a paperless application process. Plenty of lenders offer the convenience of getting an insta loan online using their website or mobile app by filling out a few basic details. You can upload soft copies of the necessary documents to the lender’s website or mobile app in the format that the lender requires to process the loan application.
The lender approaches you with an insta loan offer instead of you walking in and asking for one. In other words, you are better position to negotiate with your bank manager or relationship manager to lower the interest rate, extend the repayment period, or increase the tenure of the loan.
It is not uncommon for a lender to give you small incentives to persuade you into taking up an insta personal loan by waiving the processing fee and lowering the interest rate as one of the benefits of insta personal loans. This is a great perk to have if you truly need a loan, and it will help you to decrease your overall estimated debt a bit if you need a loan.