A Guide to the Types of Personal Loans and Eligibility to Apply

A financial crunch may come without notice, and people look to borrow money to negotiate the crisis in such situations. An instant loan online instead of a bank loan can be beneficial, as the instant loan takes lesser processing time and hassles. So, how can you apply for a quick cash loan? What are the best options for online instant loans? Find a guide to the best personal loans with a personal loan eligibility calculator.

Types of Personal Loans and Eligibility

Both salaried and self-employed persons can borrow online. Most online instant lenders do not have a strict document-checking policy. If you are looking for an emergency personal loan in Delhi, you have the following options.

1. Short Term Personal Loans (STPL)

Short-term personal loans have become popular in India in the last few years. Borrowers can apply for a loan as low as Rs. 1000. The lenders do not ask for physical document verification in such loans. Applicants must upload digital copies of necessary documents to complete the process, and the approval takes only a few minutes.

Most short-term personal loan providers have smartphone applications these days. Users can download the apps and use them to borrow money instantly. Depending on your credit profile, you can use the personal loan eligibility calculator to check the loan amount that has been exclusively offered to you.

Typically, the user has to share a PAN number, address, phone number, age, and other personal details to initiate a loan application. Different people can apply for such loans, from service persons to students and homemakers.

2. Top-Up Loan

A top-up loan is an instant personal loan, which can be applied digitally. A top-up loan is a perfect quick cash loan if you already have a home or personal loan. As the name implies, you can apply for a top-up amount on your existing loan. The amount depends on your credit history, loan repayment record, etc.

Most banks offer a top-up loan to the customers, as people may need additional funds after purchasing a new home with a home loan. The top-up loan application process does not need physical document verification. You can sit at home and apply for the loan if any pre-approved top-up loan is available for you from the bank.

Customers can also contact the bank to inquire about top-up loans if they do not have any pre-approved loans. People with good credit scores can easily get loan offers from banks. When it comes to earning and profit the possibilities and opportunities are endless. There are many fields and businesses that can earn you maximum profit like the e-commerce planners who keeps the check and balance of sales and revenue on Amazon.

3. Pre-Approved Bank Loan

Many private banks offer pre-approved personal loans to their customers. However, such a loan offer may not be available for all bank customers. Nevertheless, a loyal customer who has purchased many products or services from the bank may get such loan facilities. The good thing is that pre-approved loans feature minimal document checking.

The bank monitors your credit profile and financial transactions to offer such a loan. Therefore, you have to deal with minimal formalities to obtain such a personal loan from the bank. Therefore, if you are searching for a personal loan in Delhi, the pre-approved bank loan is an excellent option.

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4. Loan against Credit Card

Another popular instant loan online is a loan against a credit card, and you must have a credit card to apply for such a loan. Credit card issuing banks offer such loans depending on the customers’ credit history and other crucial data.

Most banks come with a pre-approved loan against credit cards. The borrowers can apply for a loan through online banking or mobile banking. Since the bank already has your KYC documents, the application becomes a formality of clicking a few options.

The loan amount against a credit card may vary between Rs. 10000 and Rs. 500000. You can choose the amount and repayment tenure according to your convenience. The best thing is that a loan against a credit card comes with a lower interest rate than app-based short-term personal loans.

A loan against a credit card does not dispatch the loan amount instantly. The bank may take 2-3 days to verify your application and disburse the amount to your bank account. The entire process is digital, which means you do not need to undergo physical document verification.

So, you can obtain these types of personal loans from various credible sources. However, before borrowing, you must carefully check repayment tenure, transactional charges, additional fees, and other conditions. The best way of checking suitable repayment tenures is using the personal loan eligibility calculator.