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Instant loan in gollapudi

Gollapudi is a residential zone in the Krishna district of Vijayawada, Andhra Pradesh. Earlier, this locality formed part of the Vijayawada (rural) township (mandal) of the Vijayawada Revenue Division. Housed by mid-rise to high-rise buildings, it attracts a reasonable chunk of the state population. It is known for its proximity to popular localities like Bhavanipuram and Kamakotinagar. A government order from the Municipal Administration and Urban Development Department (September 2017) classified this zone as part of the Vijayawada Metropolitan Area. The new developments have contributed to rising family costs. To meet these living expenses, people resort to applying for instant loans in Gollapudi.

Eligibility to apply for an instant loan and documents required

There are two types of instant loans

A collateral-based instant loan 

This type of loan is secured against a collateral property of the borrower. There are many benefits to a secured loan, such as minimal paperwork, lower interest rates, and high-value loans. Usually, the borrower is only required to present their identity and address proofs. 

A collateral-free loan

This type of loan is unsecured. The borrower doesn’t have to pledge his property with the lender for obtaining the funds. However, the borrower will be expected to have a high credit score and a stable source of income, usually above INR 21,000 per month. The lenders like to make sure that the debt to income ratio is appropriate for the loan so that the borrower can make the repayments on time. The borrower will also have to submit documents that prove their financial health, such as a salary slip or an income statement, their credit score, and sometimes even a guarantor.

For these reasons, a collateral-based loan is more popular among the lenders. 

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?

A low credit score can create a stumbling block between you and your aspirations. While approving instant cash loans in India, lenders almost always factor in the credit score before determining the loan interest rate and loan amount. If your credit score is below 700, lenders would be wary of giving loan approvals. Even when they approve, the chances are high that the interest rates and loan terms will not be in your favour. An instant cash loan online is one of the safest and easiest ways to increase your credit score. If you choose a loan amount whose EMI you can pay easily, your credit score will increase every time you pay the EMIs. Hence, if your credit score is extremely low, consider applying for small amounts and repaying them in time. Doing so will not only increase the credit score but also enable you to increase your credit limit.

Can I take an instant loan with low credit score?

The credit score is one of the important factors that the lenders look for when they give loan approvals. A high credit score is a mark of your financial health. It is preferred to have a credit score of at least 650 or above. A credit score below 700 is a mark of poor financial stability. It is based on your credit score as well as your monthly income that the lender determines the loan amount as well as the loan interest rate. When your credit score is below the preferred range, your loan interest rate is likely to be higher and your loan amount is likely to be less. In this case, you can opt for a collateral-based instant loan since it provides many benefits including low-interest loans. They also do not require you to have a stable income or a high credit score.

Can I get an instant loan if I'm self-employed?

It is absolutely possible to get an instant loan even if you are self-employed. One of the two main things that the lender looks for, when you are applying for an instant cash loan is your financial health - which is determined by two things - your credit score, and your salary slip/ income statement. These two documents mark your financial health. If you are a self-employed person, while the option of the salary slip is closed to you, the option of the income statement is still widely open. It is to calculate your debt to income ratio and to make sure that you will be able to afford the EMIs as well as your other financial liabilities every month, that the lender asks for your income statement. If your income ratio is sufficient and your credit score is high enough, you can get an instant loan just as easily. Even if your income is not sufficient, you can still get an instant cash loan. There is always the option of a collateral-based instant loan which doesn’t require your credit score, your income statement or a salary slip.

What is the eligibility criteria for an instant loan?

When you are in need of an urgent loan, instant loans are the go-to. Since there are several lenders in the market from whom you can procur the funds, the eligibility criteria also differs from lender to lender. In general, the borrower is required to be above the age of 21. When you give an instant loan application, before the approval of the loan, you are also required to submit a few documents as your identity proof, address proof and your income proof. Only upon the verification of these documents, that include your PAN Card, Aadhar Card, your income statement, etc, will your loan amount be approved. Since most instant loans, such as an unsecured personal loan requires you to have a steady income, your income statement becomes mandatory. But fortunately, by availing of a secured loan or a collateral-based loan, such as a gold loan, you can obtain the funds. While most instant cash loans also require you to have a credit score of 650 and above, a gold loan doesn't require your credit score before sanctioning you the loan amount. It also charges a lower interest rate.

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