Personal Loan: An ideal financial solution to meet your cash crunch

'Your salary XXXX is credited to your bank account', is one of the best messages in your inbox. It would instantly set your mood for a minute. You will spend the next few days shopping around, pay EMIs on existing debts such as car loan, home loan, and meet other expenses as well.

However, suddenly in the middle of the month, you realize that you have spent a major chunk of your salary and there comes an unexpected financial emergency such as: pay for your sibling's college fee or dad's medical bill. You will try to find out ways to borrow money from relatives or friends, however, every time it’s not possible. Thus, one of the perfect solutions for you is to avail the short-term personal loan.

A lot of fintech companies and credit unions offer short-term personal loans to salaried individuals, who are in dire needs of finances during the mid-month. You can borrow as little as Rs 10,000 and can go up to Rs 2 lakhs at a time. e-lenders sanction loan based on your income source, company profile, and credit score. These loans are sanctioned in just 2-3 minutes and disbursed within 1-2 working days.

Fintech companies have introduced instant personal loan apps which are accessible on your smartphone devices. To avail personal loan, you can download the app of any of the reputed finance company, log in through your Facebook or Gmail account, key in few details and upload your particulars. Lenders will do instant maths and would tell you how much cash they can lend you after looking at your particulars and the Social worth Score. Once you e-sign the copy, an executive will be at your doorstep to pick the documents. The lenders will start processing your request and the money would be directly credited to your wallet or bank account. You can then spend your money as per your convenience.

With money in your e-wallets you can shop at big bazaar, Amazon for apparels, grocery, electronics with zero costs EMIs. You can sign up for these instant personal loan apps and pay for your child's school fees in easy EMIs as well.

Here are 4 important reasons to borrow money from instant personal loan apps:

Quick sanction & easy borrowing

The borrowing process for these short-term cash loan is quite simple, and lenders sanction your loan in a mere couple of minutes. All you have to do is download the app, enter basic details, choose an amount and hit the SUBMIT button. In a couple of minutes, lenders would evaluate your request and offer you a loan with particular interest rates. With just a few more clicks, the money would be credited to your bank account.

Low-Interest Rates

Compared to conventional loan lenders and peer players, these fintech companies offer personal loans interest rates as low as 10 % to 15% and mere processing fee on it. You can download the app, fill up eligibility form and know the interest rates the lenders are willing to offer the borrowers. Your regular flow of income and stability will also play an important role to pick the personal loan interest rates by the lenders.

Easy repayment solution

Since it’s a kind of salary advance, e-lenders will offer you flexible tenure of 30-90 days for loan repayments. You can choose your repayment term and mode of repayment that will suit your needs and prove lighter on your wallets. This is a major reason, why short term loans are gaining popularity amongst salaried individuals. It's convenient and let them choose flexible EMI solutions.

No Collaterals

Another great advantage is that you don't have to pledge any collateral for short-term personal loans. If you visit a traditional lender or bank, they would ask to pledge collateral in the form of jewelry, property or investment papers, gold, etc. It brings an added burden and distracts your mental peace as well. Thus, you can borrow without putting any asset at your risks.