Model Town is a neighbourhood in Ludhiana, Punjab. It hosts a range of social infrastructures like Chintanpuri Mata Temple, Sri Krishna Mandir (Old and New), Gurudwara, Deep Hospital, Gill Hospital, Pancham Hospital, Dialysis Centre, and some educational institutions. Access to the Modelgram Railway Station, it works as a convenient route for travellers to commute in and around this neighbourhood. Hosting neighbourhoods like Nehru Nagar in its geography and surrounded by Vishal Nagar, Preet Nagar, and Sham Nagar, a wide pool of residents can secure instant loans in Model Town. Its proximity to the famous commercial places like New Grain Market works well in its favour.
People often turn to instant loans in Ludhiana for several purposes.They can be classified into:
1) Unplanned expenses: Owing to how quickly it can be availed, instant cash loans are a convenient form of credit that comes very handy in case of financial emergencies. In scenarios such as hospitalization, sometimes the bill amount might exceed the insurance cover. Instant loans can be availed within an hour and are very helpful when one has to meet unplanned expenses.
2) Planned expenses: If you are looking to start or expand your business, you can avail an instant loan to help meet your fund requirements. The funds stemming from an instant loan can be spent as per the borrower's discretion. If you choose to spend the loan mount on business, construction, or renovation of your house you are even eligible for tax rebates. Be it a leisure trip or a wedding, instant loans can be availed for any reason.
An instant loan can be of two types -
Secured instant loans- If you apply for a secured loan, i.e. an instant loan against collateral, you can get a higher loan amount. The eligibility criteria are also relaxed. Usually, it does not matter whether you can show income proof or not. You may also apply for a loan with only two documents - PAN Card and Aadhaar Card.
Unsecured instant loans- If you apply for an unsecured instant loan, the lender would approve the loan based on your income and expenditure ratio, credit score, and the stability of income. To avail an unsecured loan, you have to satisfy the minimum monthly income criteria set by the lender and is usually above INR 21,000 per month. Moreover, you have to submit documents like PAN Card, Aadhaar Card, income proof, age proof, income tax file, bank account statement, and quite often, a guarantor.
Hence, if you want a no-frills loan, it is prudent to apply for a secured instant cash loan online.
Though most borrowers strive for timely payments to elevate their credit score, it does so happen that the borrower might end up intentionally or unintentionally default on an EMI. Arrears in payment are met with various consequences depending on the lender and this ranges between a hefty penalty on subsequent payments and legal recourse. As a prudent borrower, it is advisable to map out a rough budget to ascertain if accomodating repayment of loan along with the interest will be possible. This will help you assess where you stand financially and avail a loan amount and interest rate accordingly. Bear in mind that the terms of your loan can be amended if you might be at risk of default. In such a case, you can immediately contact your lender and request for the same. Additionally, lenders also offer the facility to switch from a monthly repayment mode to pay the principal and interest at the end of the loan tenure, which is the bullet repayment mode.
The general notion when a borrower places an online loan application request is that he/she has taken stock of their needs and has placed their request only after careful consideration of their repayment capacities. Despite that, financial institutions are accomodating enough to facilitate alterations to the loan request. The components of the loan request that you may change include the loan amount, loan term, and type of loan request placed. Timing however plays a crucial role in the approval of alterations if any. Amendments to your instant loan can be implemented, provided they are stated before the loan approval stage. Post loan approval, the only alteration that can be accommodated happens to be a change in the stipulated loan term.
Your credit score requirement depends on the type of loan that you are taking. There are two types of instant cash loans that a lender may use – the first one is a collateral-free instant loan and the second one is a collateral-based instant loan. Which type of instant loans the borrowers want depends on their eligibility as well as their requirements. In the case of a collateral-free loan, the loan is unsecured. Such a type of loan requires the lender to have a high credit score – preferably 700 or higher. The credit score is the credit history of the borrower, depending on which the lender can assess the loan repayment ability of the borrower. In the case of a collateral-based loan, the loan is secured against a property of the borrower that has been pledged before the lender. This type of loan does not require a credit score because, in case of non-repayment of the loan, the lender will settle the debt by selling the property of the borrower.
When faced with some financial turbulence, it is common to find people opt for a credit card without realising the implications of failure of repayment of the debt. Although you can use an instant cash loan to pay off a credit card related debt, it is also advisable that rather than relying on a credit card for emergency funds, you can obtain urgent loans through an instant cash loan online since it is a better option. An instant loan is a better source for urgent loan for a variety of reasons. The loan interest rate on an instant cash loan is lower than that of credit cards.Credit card debt can also cause severe damage to your credit score, bringing down your eligibility for loans in the future.
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