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Instant loan in colaba

The locality of Colaba, a peninsula in Mumbai, was once known as Candil and ruled by the Portuguese. Throughout its history, the area kept switching ownership from the British to Portuguese hands, and vice versa. The name of the region originates from an important word from the language of Kolis, who are the indigenous people of the locality. The locality was formerly known for trading rare food items, but it has grown and developed into a major residential area. The area also has many tourist spots which include the Gateway of India, Colaba Causeway, Prong’s Lighthouse, Cathedral of the Holy Name, and Colaba observatory. It is also home to some eminent business figures like Mukesh Ambani, Anil Ambani, and Ratan Tata. Although the city is one of the most livable, people sometimes cannot afford costs and look for a instant loan in Colaba to support their needs.

Features of an instant loan

Instant loans are one of the simplest and most popular loans in India. Out of all loans offered by Indian lenders, instant loans are the most feature-rich and easy loan you can avail. Some of the prominent features of an instant loan are:

Flexibility- The first feature that makes an instant loan unique is its flexibility. You may use the loan amount for any purpose you want to. 

Loan approval- The second feature is the speed at which instant loan approvals occur. Usually, an instant loan gets approved within an hour of the loan application. 

Ease of loan application- The third feature is that you can apply for an instant loan online or offline. The entire process, from application to approval, is transparent, quick, and painless and is hassle-free when it comes to gold repayment. 

Minimal documentation-Last but not the least, instant loans are so popular due to the minimum documentation required to apply for an instant loan. You need to upload no more than five to six documents to submit your loan application.

Difference between instant loans and personal loans

While both instant loans and personal loans help serve the same purpose there are a few factors that set them apart. For starters, all personal loans are unsecured loans by nature which implies that it does not require any collateral to be pledged to avail a loan amount. Owing to this when you get a personal loan, you are required to submit relatively more documentation to confirm the borrower's financial health. An important factor when it comes to personal loans is a healthy credit score which is an important determinant as far as personal loan eligibility is concerned. Additionally, when it comes to personal loans, the maximum one can avail is INR 20 Lakhs. However, when it comes to instant loans, it can be classified as either secured or unsecured loans. In the case of a secured instant loan, the documentation required is extremely minimal as borrowers are anyway required to pledge an asset whose market value needs to be about 30% more than the loan amount. The upper cap when it comes to a secured instant loan is contingent on the collateral pledged. For example: If you pledge an asset worth 1 Lakh, you can avail a loan of 75 Lakhs maximum.

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Frequently asked questions

Does an instant loan affect your credit score?

If you are looking to avail credit in any form now or in the future, it is very important to maintain a respectable credit score. Credit scores play a key role in determining your loan amount, loan term, and loan interest rate. The better your credit score, the higher your chances of having the upper hand when it comes to deciding the various terms of your loan. 700 is considered a healthy credit score. Anything south of 700 could cause mistrust in the minds of lenders. The most foolproof way of increasing your credit score is by availing an instant cash loan online and arriving at an EMI that you can afford to easily payback. Make sure to maintain a balanced debt-income ratio. For instance, if your credit score if very low, avail a loan of smaller value. This will enable you to repay it easily and also extend your credit limit for any loans you wish to avail of in the future.

How is the repayment date calculated for an instant loan?

When you apply for an instant loan, the lender usually analyses your financial track record and credit score and considers your eligibility for the loan. They also determine the loan interest rates and the loan term, depending on your eligibility. When your eligibility criteria matches the lender's norms, they carry out the necessary document checks and approve the instant loan. Usually, the repayment date is calculated from the date of the instant-loan approval. As an instant loan is generally approved on the same day itself, the EMIs start from one month after the instant-loan approval date. Hence, if you apply for an instant loan on 1st January, the due date for the EMIs would be the 1st day of every month. However, some lenders offer the facility to repay the principal and the accumulated interest as one lump sum during loan repayment at the end of the term..

What are the interest rates of an instant loan?

The interest rate at which instant loans are availed differs from one borrower to another. This is determined by his/her income status and credit score. Lenders follow a streamlined procedure to disburse an instant loan which involves document verification and ascertaining the borrower's financial capabilities. Often, the loan amount also plays a key role in determining the loan interest rates. For instance, interest rates may vary between 1.29% to 1.65% if the loan amount is under 2 lakhs. If the amount ranges between 2 to 5 lakhs, subsequently the interest rates will also vary between 0.99% to 1.59%. Interest rates may vary between 0.89% and 1.39% provided the loan amount is either 5 lakhs or more. It is because of these interest rate slabs, you are required to assess your repaying capacity before availing for a loan as default in loan repayments reflect badly on credit scores.

What is the eligibility criteria for an instant loan?

An instant loan may come as a blessing when you need to take care of an urgent financial need. But different lenders have different eligibility criteria for approving an instant loan. Generally, the borrower needs to be at least 21 years old to be eligible to apply for an instant loan. The maximum age varies between 60 and 68. Additionally, the borrower must have a stable source of salary or business income. You may also apply for an instant loan if you do not have a permanent source of income. However, the lender would encourage you to deposit collateral security, such as in the case of a gold loan, or apply along with a borrower who can produce their income statement. Most lenders prefer approving instant loans to borrowers with a credit score of 650 and above. But if your credit score is less than 650, the lender may increase the interest rate and reduce the loan amount.

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