There is a lack of financial knowledge among people regarding the upgraded products in the market. As most of the people are not aware that there are few Banks and NBFCs who offer instant loans without documents, purely based on the customer persona. A personal loan, free of documentation, is a dream for most of the borrowers. With everything going online, from application to approval, documentation merely seems like a time taking a step, which is being avoided by some of the lenders.

Those days have gone when people have to put some security like a mortgage of property or gold ornaments to avail of an instant loan without documents. As now the applicant without a PAN card or bank statements can acquire an instant loan with few basic details.

Some of the key features and benefits of Instant Loan in India are:

The offered loan amount and rate of interest on Instant loans are completely based on the applicant profile like the credit score, income, eligibility, etc. Below are the generic details of the loan offers provided by the Banks and NBFCs.

When applying for an instant loan, it is mandatory to submit one’s PAN card as it is mandatory by the tax laws as per the guidelines set by the financial lenders. However, now one can get an instant loan without the submission of the PAN card if the personal loan amount is of the small amount below Rs.50,000. However, there are many financial lenders insist on the submission of the PAN card. If one has misplaced his/her PAN card at the time of applying for an instant loan, the PAN card number will suffice.

The reason for not having documents can be anything like that a person does not have a salary slip as he gets a salary in cash or any other issue. Most people face this problem are either cash salaried or self-employed like carpenter, mechanic, technician, electrician, plumber, driver, salesperson, security guard, paanwala, phoolwala, or any street food shop owner with a fixed set up.

The rate of interest on Instant loan varies based on a case to case basis. Many factors play a significant role in the offered personal loan interest rate . Some of them are given below:

The higher the credit score builds the chances for your loan or credit application to get approved. Nonetheless, a low CIBIL score will diminish your eligibility to get an instant loan .

Besides, the CIBIL score is among the major factors that influence the lenders' decision on whether or not to approve a loan application. Your credit conduct and track record from the past lenders and credit card providers get captured in the CIBIL score. While checking eligibility for an instant loan, lenders will take a look at the complete CIBIL report, which additionally incorporates all past running loans and the payment track record on the loans and credit cards. So, the CIBIL score is the most significant factor that defines the eligibility to get an instant loan without documents.

An applicant needs to fulfill a certain criterion for availing Instant loan without document although it may differ from lender to lender. Here are the generic eligibility criteria for Instant Loan:

In Instant Loan, EMI or equated monthly installments are considered as the most important factor. EMI is the acronym of Equated Monthly Installment. It is the amount that a borrower has to pay throughout the allotted loan tenure. In simple terms, EMI is a significant part of the due amount i.e. the principal and the interest accrued payable each month. Although, manually calculating EMI is not everyone’s cup of tea but technology has simplified almost all the difficult tasks. So, the technology has come up with a gift to you which is an instant loan EMI calculator. And the best part is that almost every lender provides the freedom to use free of cost online personal loan EMI calculator .

Apart from the rate of interest, there are other charges like processing fees, part prepayment charges, inspection charges, foreclosure charges, etc. are also levied on an instant loan. Not all the lenders charge all of them as it varies based on a lender to lenders. As there are few lenders those do not charge processing fees.

After providing all the required details, a message will be displayed on the screen regarding the eligibility. And if you’ll be eligible for the loan then the Afinoz team will contact you.

You can easily apply for an instant loan with Afinoz. It is a financial platform who has tie-ups with various lenders that provide instant loans purely based on the customer persona. So, if you are facing any difficulty in availing an instant loan without documents then go with Afinoz App. Here are a few simple steps for applying for an easy loan:

There are various banks and NBFCs those offers the instant loan. Here are some of the customer care numbers:

FAQs

Q 1 What is a credit score? Is it important for availing an instant loan without documents?

A credit score is a three digits number that indicates how you repay debt. Yes, it is important to get an instant loan without document as your score determines whether you qualify for the loans, credit cards, and other credit facilities.

Q 2 How does my credit score impact the calculation of the loan amount?

Your credit score reflects how you have handled your finances. It considers the credit card bills payment history, repayment of the past and current loans, and other criteria. Your credit score tells lenders how likely you are to repay them if they grant you a loan. The higher the credit score, the better the chances are of getting a higher loan amount at low interest.

Q 3 What is the maximum amount of loan I can get without documents?

The maximum loan amount based on various factors like your eligibility, income, credit score, etc. In India, some lenders offer up to Rs.50 Lakhs.

Q 4 What is the prepayment and how does it help in repaying my loan?

If you happen to get extra money, you can pay it towards the loan even before the EMIs are due. This is called a prepayment. Every prepayment you do it goes towards reducing the outstanding principal amount of the loan. And since the principal reduces, the rate of interest cost will also reduce.

Q 5 How much instant loan can I get if I earn a monthly salary of Rs.40,000?

For instant loans, most of the lenders has fixed the minimum monthly income requirement between Rs.15,000 to Rs.25,000. Thus, if you have a monthly income of Rs.40,000, you can be fairly certain that you’ll not find it difficult to the amount you want. The exact amount that you will be offered will, however, differs based on your repayment capacity, debt-to-income ratio, the lender’s terms, and conditions, etc.

Q 6 What is the maximum age limit for an instant loan?

The maximum age limit to apply for an instant loan is 60 years. This may, however, vary from lender to lender.

Q 7 What is the minimum salary that an individual is required to earn to apply for an instant loan?

The minimum salary requirement differs based on lender to lender. Most of the lenders, however, will require you to have the monthly income at least of Rs.15,000. And if you reside in a metropolitan city, you may have to earn between Rs.20,000 and Rs.25,000.

Q 8 Can you get an instant loan if you are retired?

Many banks offer loans for pensioners. Thus, if you are a pensioner, you may get an instant loan.

Q 9 Can I get a loan with a credit score below 500?

If the credit score is under 500, the chances of your loan application are high. Even if your application is approved, you may have to pay a high rate of interest for the loan.

Q 10 Can I borrow an instant loan to pay for my house deposit?

Yes, you can. There are banks and financial institutions that offer loans that do not lay down with any restrictions on the usage of the loan amount.

Q 11 How long does it take to get approved for an instant loan?

It may take anywhere between a few seconds to up to 48 hours. If you are a pre-approved customer, then your loan amount will be approved very quickly. However, the loan approval time varies from lender to lender.

Q 12 Will borrowing an instant loan affect my credit score?

Once you borrow a loan, the credit score can be improved if you pay the required EMIs on time as specified by the lender. On the other hand, the credit score can be dropped if you miss the EMI payments.

Q 13 How long do I have to be employed to get an instant loan?

Generally, the lenders will require you to have a work experience of at least 2 years. This condition, however, varies from lender to lender.

Q 14 How will I know if my instant loan application had been approved?

Now days almost every lender facilitates the service of track the status of your loan application through online/offline channels. Also, the lenders let you know if the application has been approved.

Q 15 How can I access the funds that I receive through my loan?

Mostly the lenders disburse the loan amount directly into a bank account.

Q 16 How can I get a top-up on my loan if I require more funds?

Remember that not all lenders offer top-up on instant loans. However, lenders like Citi Bank does offer top-up loans, you can apply for the same through online or offline mode.

Q 17 What should I do if I want to repay my loan (partially or in full) during the loan repayment tenure?

Most lenders will allow you to make the pre-payments or pre-close the loan during the loan repayment term. You will, however, may have to pay a nominal fee to the lender for doing the same. Keep in mind that most lenders will only allow you to prepay or pre-close the loan after 1 year of borrowing the loan.

Q 18 Since a longer tenure means lower EMIs, should I always go for a longer tenure?

No, not necessarily. This depends on your ability to repay the loan amount. In other words, how much you can afford to repay monthly. If you’re able to afford only a smaller amount, choose a longer-term. But remember that this will result in you paying more interest over the longer time.

Q 19 How can I repay my loan?

There is various way through which you can repay the loan amount: 1. Via Electronic Fund Transfer (EFT) 2. By cheque 3. By physically paying at a branch of the lender 4. Via standing instruction for automatic deduction from your account

Q 20 How often should I repay my loan?

This depends on the lender terms you choose. Normally, every instant loan repayment is calculated based on monthly repayment. It includes the principal and interest components that you are expected to repay every month.

Q 21 How can I avoid defaulting on my loan repayments?

The tips given below can help you pay the loan installments on time: 1. Apply only for a loan amount that you can afford to repay on time 2. Don’t apply for a high loan simply because you’re eligible for it 3. Choose the repayment tenure wisely. 4. Look for a loan with a low rate of interest 5. Look out for other the rates, charges, and hidden fees 6. Give the utmost priority for the EMI in your monthly budget 7. Set reminders for each month’s EMI payments

Q 22 Is there any charge for prepaying the loan?

Some lenders may ask you to pay a fee in a subject to the loan repayment. Others may either waive the fee or may not have prepayment charges at all.

Q 23 How is my prepayment fee calculated?

This depends on the lender. Some lenders charge you a fixed fee for each prepayment. Others may charge you a certain percentage of the amount outstanding or a percentage of the amount prepaid.

Q 24 Can I offer collateral and get a loan if I have bad credit?

Yes, you can. This is another way to get a loan even if your credit score is low. Some lenders may offer you a loan if you’re willing to offer them something as a security. But keep in mind that the lender has every right to possess the collateral if you don’t repay the loan as promised.

Q 25 Can I offer collateral and get a loan if I have bad credit?

Yes, you can. This is another way to get a loan even if your credit score is low. Some lenders may offer you a loan if you’re willing to offer them something as a security. But keep in mind that the lender has every right to possess the collateral if you don’t repay the loan as promised.

Q 26 What credit score should I have to get a loan?

A credit score of 700 and above is considered as a good one. This should be enough to get you an instant loan without any hassles. But, a score of 800 or more will get you into the good books of the lenders. This could get you a better rate of interest and the repayment options.

Q 27 Why should I take an Instant loan?

An unsecured loan can help you during urgent financial needs. You can easily apply for one if you qualify for it. Lenders usually process the loan quickly. You won’t have to offer any security or collateral.

Q 28 When will a bank reject my loan application?

A bank can reject the loan application if you apply for a loan for which you are not eligible. No, you will not need a guarantor.

Q 29 Will I need a guarantor to take an instant loan?