Quick Loans: What are they and How to Apply for them?

Quick loans are the type of needs that are meant to fulfill the short-term needs of the users. ‘Short-term’ needs refer to those financial needs that need to be met right away. Quick loans allow users to make use of the money immediately after getting their application approved. Since these loans are literally ‘quick’, they have minimal documentation process.

Let’s learn more about what are quick loans and how you can apply for them.

Understanding Quick Loans- In Detail

Owing to their quick simple application and approval procedure, quick loans are offered by many lenders. However, the applicable terms and conditions stand different for each lender. Users can also apply for quick loans online at the comfort of their homes. Here are some other features of quick loans that you should be aware of-

  • The lenders of quick loans charge a processing fee on the amount issued. This fee ranges between 1% and 5% depending upon the lender and the loan amount
  • In situations where the borrowers wish to apply for pre-closure of their quick loans, they are allowed to do so in exchange for a nominal fee. However, there are also a few lenders that allow borrowers to pre-pay their loan amount without any additional fees
  • Quick loans are disbursed to the borrowers at a very fast speed due to the minimal documentation process involved
  • Borrowers can get their loan amount within a few hours of applying for the loan. Additionally, there are also a few lenders that guarantee the disbursement of the loan amount to the borrowers in a few minutes
  • Many lenders of quick loans in the market offer insurance coverage to their borrowers against the loan amount. The insurance coverage assures that if something happens to the borrower during the loan tenure, the insurance company will recover the lender’s dues
Read More: Personal Loan Eligibility Criteria: All you Need to Know

Why Opt for Quick Loans- Benefits

Here are a few reasons why you may opt for quick loans for your short-term, immediate needs-

  • Simple application procedure
  • Quick disbursement of the loan amount
  • Minimum documentation process involved
  • Option of foreclosure of the loan is available to the borrowers at no or nominal fees
  • The loan amount is made available to the borrower in a matter of few hours or even minutes (there are only a few lenders that guarantee the disbursement of the loan amount within minutes)

How to Apply for Quick Loans?

Quick loans have a very simple and easy application procedure. You can apply for a quick loan online, at the comfort of your home. All you need to do is ensure the following and you’ll be good to go-

  • Before you register for a quick loan, you must create an account on the official website of the lender
  • To create an account, you should provide your personal information such as your personal details, employment details, previous credit details, and the details of your income
  • Additionally, you will also be asked to upload the supporting documents of all the information that you provide
  • After you provide all the required information, the lender will quickly verify all your details with your documents
  • Upon successful completion of the verification of your documents, the lender will immediately approve your application and the loan amount will be disbursed to your account
  • Once you have received the loan amount, you can use it to meet any of your personal financial needs

Note: Before you go on to apply for a quick loan, it is advised that you perform complete research on the type of loan that you need, and from which lender you wish to borrow the loan. Various lenders offer quick loans under different terms and conditions. You must be aware of all these conditions well before you apply for the loan.

Documents Required for Quick Loan Application

To apply for a quick loan, you must furnish the following documents-

PurposeDocument Name(any one)
Identity ProofPAN CardAadhaar CardVoter’s IDPassportDriver’s License
Address ProofAadhaar CardVoter’s IDPassportDriver’s LicenseUtility BillsRent Agreement
Salary slipsUp to 6 months
Bank statementUp to 6 months
Employment ProofEmployee’s ID Card
Income Tax ReturnOnly for self-employed applicants
Signature ProofSpecimen Signature
Passport Size Photographs3-5 photos

You must note that while applying for the quick loan, you will have to upload soft copies of these documents in the application form. Hence, you must have all these documents scanned with you before you go on to apply for a quick loan.

Eligibility Criteria for Quick Loans

If you are willing to apply for a quick loan, you must first ensure that you meet the following conditions-

  • In most cases, the applicant for a quick loan must be above 23 years of age. However, this requirement of age varies from one lender to the other. Some lenders have even set the minimum age of the applicant at 25 years
  • It is mandatory for the applicant to be employed at the time of applying for the loan. There are also a few lenders that have a condition on the employment duration as well
  • The applicant’s monthly income must be higher than the limit set by the lender. If the applicant does not meet the minimum income criteria, then he/she will not be considered eligible for the loan
  • The applicant must not have any defaults in previous loans. A good credit repayment history holds a lot of significance in the approval of quick loans
  • It is mandatory for the applicant to be a resident of India in order to be eligible for a quick loan

Important Points to be Considered

Before you move on to apply for a quick loan, you must be aware of the following-

  • Quick loans have relatively higher interest rates in comparison to the other traditional loans
  • While applying for a quick loan, you must check the lender’s service record. You must be absolutely sure that the lender has a good service record and is certified
  • Make sure to read all the applicable terms and conditions associated with the loan. There are various cases wherein these loans have hidden charges, which the borrower is kept away from
  • While borrowing a quick loan, be careful of the amount that you apply for. The loan should be within your repayment capacity. This is important because any default on these loans would lead you to paying high interest charges
  • When you apply for a quick loan, you must also look at the limitations that they have. Ensure that you are borrowing the loan from a trusted lender and that there is complete transparency in the application process. Be careful of not falling into any sort of debt traps

FAQs
Can self-employed individuals apply for a quick loan?
Yes, self-employed individuals can apply for a quick loan. All they need to do is provide an additional document as a proof of their Income Tax Returns apart from the other documents that are mandatory for all the applicants of quick loans.
How is quick loan different from a traditional loan?
Quick loans are different from traditional loans in the following ways-
  • Quick loans are disbursed within hours of application
  • Quick loans are best suitable for short-term needs
  • Quick loans have minimal documentation requirements
  • Quick loans can be applied and approved online
  • Quick loans have relatively high interest rates
Do I need to provide any collateral to borrow a quick loan?
No, you don’t need to provide any collateral to borrow a quick loan.
Are there any conditions on how I can spend the loan amount?
No, there are no specific conditions on how you can spend the loan amount. Once the loan amount is disbursed to your bank account, you can spend it wherever you want.
How can I apply for a quick loan?
You can apply for a quick loan on the lender’s official website. Ensure that you have registered yourself on the website before you begin with the application procedure. After doing so, you need to provide relevant details of your employment, income, and previous credit history along with supporting documents.
How much time does it take for a quick loan to approve?
Quick loans get approved within a few hours of application. There are also a few lenders that guarantee the disbursement of the loan amount within a few minutes of applying.
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