A quick or instant, or personal loan makes it easier to fulfill a short-term need. It is an easy and practical avenue to explore if you need money for an immediate need, such as a medical or financial emergency. When taken from a good loan app, the application is processed quickly, and the money is disbursed in a few hours. It is rare for a good loan app to take over 24 hours to review your application and disburse the loan.
Once disbursed, you can use the money for festive shopping, home repairs, buying home appliances and personal electronics, or emergencies. However, the personal loan is an unsecured product and attracts a higher interest rate than secured loans like home purchase loans.
What you need to know before applying
If you are a first-time instant loan applicant, there are some facts you must be mindful of. These pertain to the loan product, its application process, terms of use, and so on:
* Your credit score matters the most:
Your credit score can either pass or scupper your application. If the score is low, it is difficult for most lenders to approve your loan application. This is because most lenders rely on credit rating agencies like CIBIL to know an applicant’s credit score – if it is below 600 (out of 900 points), the application may be flagged or rejected. However, loan apps like CASHe follow a more intuitive approach towards credit checks. Apart from verifying the credit scores from agencies like Equifax and CIBIL, CASHe also uses its unique AI-backed algorithms to check your SLQ (Social Loan Quotient) to study your financial behavior. This offers a far more intuitive and in-depth look into your creditworthiness than checking only the credit score. As a result, even those rejected by traditional lenders may find approval for their application from CASHe, provided they have a good credit score.
* Be aware of the interest rate and other charges:
The interest is not the only money you pay on the instant personal loan. You must also pay processing fees and broken interest. For example, if you borrow the loan from CASHe, you must pay processing fees between Rs 500 and Rs 1,200, depending on the loan amount you borrow. Interest is charged at 2.5% per month on the loan amount. The broken interest is calculated from the date of disbursal to the immediate EMI date in the following month. Find out the interest rates and schedule of charges before you sign up.
* Your repayment history is essential:
Your application may not be approved if your repayment history is suspect. Your repayment history encompasses not just previous debt repayment but also bill payments and other transactions. For example, suppose you routinely pay bills after their due date, or maintain low account balances (below the specified minimum balance limits, for example) or have one or more cheque bounce or recall instances, or colossal credit card borrowings. In that case, the lender will think twice before offering a personal loan to you.
* You must file your documents correctly:
Though instant personal loan apps are often flexible about the documentation process, you must still get it right. Check the documents list thoroughly and make copies of whatever is required. Double-check all the information and ensure that it is the latest and most correct data. Incorrect submission or outdated/wrong information may jeopardize the loan approval.
Steps to avail an instant personal loan from CASHe
There are few things in life simpler than getting a personal loan from CASHe.
Follow the steps to secure one:
- Download the CASHe app from the Google Play Store or App Store
- Set up your profile so that the app can evaluate your application. Setting up the profile involves keying in your personal and financial information as prompted in just a few steps. This information helps the app check your credit score and other factors.
- Study the personal loan section in detail, particularly noting the interest rate, how interest is calculated in case of late payments, processing fees, documents list, benefits of applying for the personal loan from CASHe, etc. If you have any questions, initiate a discussion by emailing the app at support@cashe.co.in.
- CASHe offers multiple instant loan options, including microloans from Rs 1,000. The maximum loan you can borrow is Rs 3,00,000. The repayment tenors are 90 days, 180 days, 270 days, and 1 year.
- Apply for the personal loan and upload your documents as directed on the app.
- Await the app’s approval for your loan request. If your credit score is good and your documents pass scrutiny, the approval should come in a few hours, with the disbursal following in just a short while later.
- Repay the loan on the app’s bank account in EMIs every month, using/NEFT/IMPS payment modes.
