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Instant loan in Rajahmundry

Rajahmundry or Rajamahendravaram is aptly called the cultural capital of Andhra Pradesh. The ancient city is credited with the birth of Telugu, the language used by the people of the state. Established by Ammaraja Vishnuvardhana the First in the 10th century, Rajahmundry served as a nerve-center for India’s freedom struggle as well as for social reforms, such as widow remarriage and school for girls. At present, the city is an industrial hub that generates employment opportunities through various big and small industries. Instant loan in Rajahmundry often enable people to handle their urgent monetary requirements. The city is renowned for its floriculture as well as tourist attractions like the Markandeya Temple, the Kotilingeswara Temple, Papi Kondalu, and the ISKCON temple.

Difference between instant loans and personal loans

Difference between instant loans and personal loans

While both instant loans and personal loans serve the same purpose, that is to provide you with cash, there are some differences between the two.

Difference

Personal Loan

Instant Loan

Nature

A personal loan is an unsecured loan.

An instant loan can be either secured or unsecured.

Collateral
Requirement

You do not need to submit any collateral guarantee to avail the loan.

If you opt for a secured loan you will have to pledge collateral, which isn’t the case if you apply for an unsecured loan.

Documents Requirement

Due to its unsecured nature, lenders require various documents that prove the stability of your income and keep the loan amount low.

You only need to submit certain basic documents such as identity proof in case of a secured loan. Documentation requirement is low as you will anyway be pledging collateral. In case of an unsecured loan you will have to submit documents such as income statements, payslips. address proof, etc

Maximum Limit

The limit of an unsecured personal loan or an unsecured instant loan is typically up to INR 20 lakh.

In the case of a secured loan, the limit depends on the collateral pledged. If you apply for a secured instant loan, the lender would sanction up to 75% of the collateral’s market value. Hence, if you deposit collateral whose market value is INR 1 crore, you may get a loan of up to INR 75 lakh. In case of an unsecured instant loan, the limit is INR 5 lakhs.

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 are the tips while applying for an instant loan in India?

An instant loan is the best option there is in India, to get emergency loans. There are two types of instant cash loans in India, a collateral-based instant loan and a collateral-free instant loan. In the case of a collateral-based loan, you need to pledge your property with the lender in order to obtain the funds. The only documents you require are address proof and an identity proof. You can enjoy attractive interest rates on a secured loan. The other case is that of an unsecured loan where you don’t have to pledge your property with the lender but you need to have a high credit score and a stable income. The credit score has to be above 700 for the loan amount and the loan interest rate to be favorable. Both the type of instant cash loans are popular in India with both not taking more than an hour to process the loan.

What's the maximum limit for an instant loan?

An instant loan is one of the most preferred loans as it provides immense flexibility. It is also the easiest solution for emergency funds. But, if it is an unsecured instant loan that you have opted, you will be charged with a high loan interest rate. On the other hand, secured instant loans have lower interest rates. The maximum amount that can be obtained by an unsecured loan is 5 lakhs. As the loan amount decreases, the loan interest rate also increases. If you are looking for an instant cash loan that has no upper limit, you should try a secured, or a collateral-based instant loan. A collateral-based instant loan not only provides lower interest rates, but they also disburse amounts up to 75% of the market value of the collateral, such as gold, that you have pledged with them. You can enjoy the low loan interest rate as well as the high-value loan amount in case of a collateral-based instant loan. This is because of the security, the liquidity, and the LTV (loan to value) ratio of gold when kept as collateral.

What is netbanking verification while applying for an instant loan?

As more and more users are increasingly accessing the internet through their phones, financial institutions are leveraging the data stored and linked to these phones to determine the borrower's credit profile and repayment capacities. Net banking verification is a black-box algorithm established by lenders to ascertain whether or not your salary has been getting credited to your salary account regularly. This is a secured, automated process and takes just a few minutes! However, if you are apprehensive of this process, when you are applying for an instant cash loan online you can submit your income statement and payslips along with the rest of your documents. In the presence of this proof, the lender will not have to verify your net banking transactions.

What are the reasons for an instant loan to get rejected?

Only in few rare and extreme cases does an instant loan get rejected. This happens when the lender has to adhere to the standards and the norms set by the industry for their safety. Since the credit score and the salary slip of the borrower are the two main important factors that determine their eligibility for an instant loan, any mismatch in these cases can lead to failure of the loan approval. If the borrower has poor credit scores - such as below 650, the loan will not get sanctioned. It is generally preferred to have credit scores above 700. If the borrower also doesn’t have a steady source of income or constantly jumps from one job to another, he is also not likely to get the loan amount. Having a stable source of income and a good credit score is advisable when taking an instant loan. If that is not an option available to you, you can consider an instant cash loan against collateral.

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