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Instant loan in kagal

Kagal is a town located in the Kolhapur district in Maharashtra. It lies at the boundary of the states of Maharashtra and Karnataka. The Dudhganga River flows through this town. The Chhatrapati Shahu Sahakari Sakhar Karkhana, a large sugar mill, is located in this town. Kagal is situated at a distance of about 19 km from the city of Kolhapur. The Kagal-Hatkanangale industrial area (MIDC) is the location for several big and small industries and is one of the main sources of employment for the local residents of the town. People also depend on instant loan in Kagal to meet various miscellaneous expenses.

Reasons to take an instant loan

The flexibility in the end-use of an instant loan makes it one of the most popular loans in India. Denizens often avail instant loans in Kolhapur for various reasons. The first reason why people avail an instant loan is to address sudden financial emergencies. Sometimes, in case of hospitalisation, the bill amount may exceed the available cash. An instant loan provides urgent money, which one can use on anything related to health. Another reason why people apply for an instant loan is to set up a business. In some cases, using the instant loan amount for business may also enable you to apply for tax rebates. Many borrowers also avail an instant loan to sponsor a vacation or a tour. The fourth reason why people apply for an instant cash loan is to spend it on sponsoring a big event like a marriage.

Difference between instant loans and personal loans

Although both personal and instant loans provide the lender with emergency funds, certain features make them different from each other. These pertain to their nature, their requirements, and their loan amounts. 

Nature: While a personal loan is always unsecured, an instant cash loan can be either secured or unsecured.

Collateral requirement: Personal loans are always collateral-free while instant loans can be collateral-free as well as collateral-based.

Required documents: Personal loans require more paperwork to prove the financial health of the borrower. In the case of secured instant loans, the paperwork is minimal, consisting only of the borrower’s identity and address proof. However, when obtaining an unsecured instant loan, the borrower is required to submit documents to prove their financial health, such as their credit score and income statement.

Upper limit: Up to INR 20 lakh can be procured using a personal loan. When it comes to a secured instant loan, there is no upper limit in the loan amount that can be availed. The lender can receive up to 75% of the market value of the pledged collateral as the loan amount. On the other hand, not more than INR 5 lakh can be obtained as the loan using an unsecured instant loan.

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Frequently asked questions

Do I need a high credit score to apply for a gold loan with Rupeek?

700 is considered an ideal credit score. Any score north of 700 is considered respectable and gives the borrower an upper hand when it comes to negotiating the terms of the loan, such as loan tenure, loan interest rates, and loan amount. You will not have to concern yourself over your credit score when it comes to Rupee. You can pledge your gold as security against your loan and avail the same seamlessly. As per the regulations of the governing bank of India, you will be eligible for about 75% of your collateral's market value. Even though income proof such as salary slips, a healthy debt-income ratio, a high credit score are all important when it comes to availing an instant loan, Rupeek discounts these factors if you can secure your loan with collateral instead.

Can I repay my instant loan early?

Almost all lenders in India offer the facility to close the instant cash loan before the end of its term. What makes them different is the charges they levy for providing such a facility. You may prematurely close the account in two ways. The first is by paying the entire amount in full before the end of the loan term. Usually, the lender charges anywhere between 0% and 3% for full loan repayment. You may also avail the facility of part prepayment and use any extra cash in your hand to pay a lump sum in addition with the existing EMI. In this case, the lender may charge an amount which is 0% to 1% of the lump sum amount. By clearing the dues early, you may enhance your credit score and become eligible to apply for a new high-value loan.

How is the EMI for an instant loan calculated?

EMI amounts vary from one borrower to another. That is, the EMI is subject to change depending on the interest rate, loan term, and loan amount. Usually, in a repayment cycle, most of your repayment goes towards the interest, post which your payments gradually trust towards repayment of the principal amount. The loan amortization schedule shows the breakdown of the principal amount vs the interest component. For instance, if you get a loan of 10 lakhs with an agreed repayment tenure of 12 months at a 10% loan interest rate, then your monthly EMI will sum up to 87,920 -/ INR. Depending on the magnitude of each component the EMI amount will also vary. If the interest rate increases while the period remains the same, then you will have to pay more within the same time and hence the EMI will increase and vice versa.

Can I take an instant loan for home renovation?

An instant cash loan is often considered as the best loan when you want to carry out urgent home repairing. You may use the funds to carry out plumbing work, electrical work, painting, or structural repairs. Alternatively, you may use it to buy an air conditioner or any other device or gadget which would enhance the aesthetic beauty of your house. The application and the instant loan approval process is pretty straightforward. Keep a few essential documents like PAN Card, Aadhaar Card, and two or three other documents ready, and you would most likely get the funds in your account within an hour of the loan application. The loan interest rate and loan term will depend on your credit worthiness and your ability to make the loan repayment on time. If a home renovation is high on your priority list, an instant loan can be your best friend.

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