Finance is the backbone of each and every economy. In today’s world, everything is available to the people on their fingertips due to globalization and technological advancement. The globalization has provided the competitive edge in to the industry and the customers have started getting inclined towards the products which are instantly or immediately available to them.
The finance industry is also affected with the same concept of immediately delivery and to cater to that the banking and financial institutions have come up with the special, unique and different feature which is known as “Insta Loan”. The Online Loans functions according to its name. In today’s world, the needs and wants of the customers have increased to a greater pace. The customer gets interested to avail the loans to meet their various requirements. At the same time, the customers prefer the insta loan, as manier times, the banks or NBFCs or Financial Institutions provide the same on the basis of pre-approved amount which is based on the credit rating of the customer or credit limit of the customer. The insta loan has a minimum documentation and it does not require any guarantee to avail the benefits for the same. The customer gets the loan amount in the bank account in the quickest time once he or she follows certain simple steps mentioned on the website or through Phone banking or by visiting the branch.
However, the customers have to be very careful before they chose to avail the insta loan. Here, we are providing certain guidance which will help you avoid the common mistake which are being made while applying for the insta loan.
- Avail the loan if you really need:-
The banks or the financial institutions or NBFCs are contacting the customers to lure them in order to avail the insta loan or for that matter any kind of loan. The companies provide the attractive interest rate and flexible repayment schedule to attract the customer. However, at certain times, the customer avail loan because of the rosy picture which has been shown to him or her. At that time, the customer should remember that getting the loan is a huge commitment and it can affect your financial planning. The customer should be specific about his or her needs and wants. And hence, the customer should not opt for a loan unless and until it is a serious and unavoidable circumstances or requirement.
- Overlooking the processing fees and costs:-
While applying for the loan, the customer must compare the cost and benefit analysis with the competitor companies. Mainer times, the lender companies are charging heavy hidden charges and processing fees. If the customer is not careful enough, then he or she may end up paying more amount then it had been expected.
At the same time, it is important for the client to evaluate and carefully read all the documents carefully. In case of any query or confusion, the customer must contact the respective authority and get the clarity over the same.
- Failing to understand the mechanism of the insta loan:-
Majority of the time, the customers are making the mistakes to opt for the loan which they have not understood properly. Because of the facility of getting the instant cash, the customers avoid and overlook the proper process which has to be followed before applying for the loan. The customer has to carefully evaluate all the features those have been offered by the lender. It is a necessity to check all the terms and conditions which are being offered by the lender.
- Ignoring the credit score:-
If the client has a reasonably good credit score, then the loan gets approved easily. But, if the customer does not hold the good credit score then there are high chances of the loan to get rejected. If the loan gets rejected, the same spoils the credit score and banking history even more and that can affect your future transaction. Hence, it is always advisable to apply for the loan if you have a good credit score and the client must always try to improvise the same.
- Repayment Ability:-
As the insta loan is having various attractive features, the customer is getting more and attracted to avail the same. And in the hurry of availing the same, the customer often ignores the fact, as far as his or her repayment ability is concerned. This can lend you in a very serious trouble. It is an essential need for the customer to always make sure that he/she assesses the loan tenure, the interest rates, EMI options etc. Apart from that, the customer must check that whether the monthly instalment paid will be affordable or not using EMI calculator. The EMI has to be compared with the net monthly income of a person. Ideally, the monthly instalment should be under the range of 15 to 20% of the monthly income and should not access the same.
- Opting for the loan without comparing the available options:-
Majority of the time, the people opt for the loan offered by the bank in which they are having the savings account or salary account. As the insta loan is instantly available, the customers do not bother to compare the same with the options that are available in the market. Sometimes, because of the some, the customer is not able to avail the actual benefit of the loan. The customer must check all the options available. The same can be checked by visiting the various websites of the banks & financial institutions. Also, there are various applications which are available to provide the guidance to the customer. Even the customer can approach many companies at the same time in order to get the information. The customer care executives and sales team of the lender companies are always available to give the assistance to the borrower or the customer who wants to opt for the loan. Your little bit of effort to get the information can help you in gaining the financial rewards.
Amrita Agarwal 