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Instant loan in muthukur

The village of Muthukur in Nellore is home to a quiet village-based population that relies on local infrastructure for daily-to-day needs. The place has noteworthy institutions like College of Fishery Science etc. that serve as landmarks in the low-key townscape. The people here benefit from the public bodies set up by the gram panchayat and choose industry-based occupation for a sound livelihood. Muthukur Mandal Power Station located here, employs a handful of villagers in and around Muthukur. The local population takes the benefit of financial aid and instant loan in Muthukur for a range of requirements- both personal and occupation-based needs.

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.

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. 

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Frequently asked questions

What is the minimal age requirement for an instant loan?

When you apply for an instant loan, you get funds for fulfilling your life's myriad aspirations. However, to avail the maximum benefits of an instant cash loan, you must satisfy the eligibility criteria. The eligibility criteria differ from lender to lender. Generally, to avail a collateral-free instant loan, your age must be 21. However, if you are applying for a collateral-based loan, e.g. a gold loan, the minimum age can be as low as 18. To prove your age, you may submit documents like birth certificate or secondary school examination admit card. Other than satisfying the age-related eligibility criteria, it would be best if you also meet other eligibilty criteria which might have an impact on the approval or rejection of the loan.

Is it safe to take an instant loan online?

It is one hundred percent safe to take an instant loan online. The Reserve Bank of India authorises almost all lenders offering lending services in India under Section 45 IA of the Reserve Bank of India Act, 1934. You should always check the lender's Certificate of Registration and its validity before keying in your details online. Regarding the security of your personal and bank details, many reputed online lenders use 256-bit encryption and international-standard threat mitigation technologies, like the SSL technology, to make your data completely safe and secure. Hence, you can stay fully assured about the safety of your financial data. An instant cash loan online is one of the best ways to fulfil your aspirations without bearing the additional pain of making the rounds of the lender. Starting from application to EMI payments, every process is online. Additionally, online lenders offer much lower interest rates than many brick and mortar lenders.

instant loan or overdraft - Which is the better option?

There are some significant differences between an instant cash loan and an overdraft. An overdraft is a more flexible option when compared to an instant cash loan. It is possible to change the borrowed amount later on and the interest need only be paid on the borrowed amount. Another major benefit of a bank overdraft is that there is no extra charge that will befall the borrower when they make the repayment prematurely. In the case of an instant loan, it is possible to avail of much larger loan amounts than an overdraft. It is your financial health such as your credit score and your income that determines the loan amount that you can obtain. In the case of a collateral-based loan, you can get up to 75% of the market value of the pledged gold. But, there is a limit in the amount when it comes to an overdraft. The interest rates on an overdraft also happens to be higher than the interest charged on instant cash loan. Both the sources of the funds come with their own share of merits and demerits. It is advised that you pick the best option depending on your need and your financial state.

How can I get instant loan in one day?

An instant cash loan online is one of the most popular and easiest loans you may apply for when you need urgent cash. The best feature of an instant loan is the speed with which it gets approved. To apply for an instant loan, you have to download the lender's app or call their customer service desk. If you apply for a collateral-free instant loan, the KYC verification process will take place online. If, however, you apply for a secured loan, a loan officer would visit your location within thirty minutes for physical KYC and collateral verification. After successful validation, the lender would approve the loan and transfer the loan amount to your bank account. Generally, the entire process takes about one hour. Hence, an instant loan makes sure that the shortage of funds will never be an issue anymore.

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