In times of financial emergencies, when you encounter unexpected situations like medical emergencies, job loss, or urgent travel, obtaining urgent funds becomes crucial. Small businesses also face situations where instant money is needed to maintain cash flow or fulfill business needs. However, gathering funds within a short time frame can be extremely challenging.
Fortunately, there is a solution that can come to your aid: same-day personal loans. These loans can be acquired for any purpose and are conveniently available online, allowing borrowers to apply from the comfort of their own homes. The best part is that same-day personal loans, as the name suggests, are disbursed on the very same day of application.
What exactly are same-day loans?
Same-day loans, also known as instant personal loans, provide funding solutions to individuals who require urgent financial assistance within a short period. These loans function as personal loans and are unsecured, meaning no collateral is required. The entire loan process is conducted online through a fully digitalized channel, and once approved, the loan amount is swiftly disbursed to the borrower’s account within a few hours. One of the advantages of same-day loans is that they come with no restrictions on how the funds can be utilized.
However, it’s important to note that same-day loans carry a higher interest rate compared to other loans. The absence of collateral and the increased risk for the lender in case of non-repayment contribute to this higher interest rate. It is essential to compare different lenders to find the best offers and rates to save money.
To be eligible for same-day loans in India, certain criteria must be met:
- Age: The minimum and maximum age requirements to avail same-day loans range from 25 to 60 years.
- Income: Current monthly income should be at least ₹25,000, as income determines the repayment potential.
- Employment: Full-time employment with a minimum of 2 years of experience in the current profession is necessary. For self-employed individuals, a working tenure of 5 years for their business is required.
- CIBIL Score: A good CIBIL score of 750 to 900 is necessary to get approved for a same-day loan.
The interest rate for same-day loans is slightly higher compared to secured loans, such as home loans. While home loans typically have interest rates ranging from 7% to 8%, same-day loans start at 10.5% and can go up to 24% p.a. It’s important to carefully consider the cost of the loan and how it will affect your monthly installment amounts. Additionally, the interest rate remains fixed throughout the loan period.
The repayment period for same-day loans ranges from 1 to 5 years. It’s crucial to be cautious when choosing the loan amount and tenure, as a shorter tenure means higher equated monthly installments (EMIs). Borrowing within your repayment capacity is always the best approach. To gain more accurate insights, you can use an EMI calculator to estimate your monthly installments.
Same-day loans offer several features:
- 100% paperless process
- Online application
- Loan amounts ranging from ₹50,000 to ₹20 lakhs
- No collateral required
- No end-use restrictions
- Quick disbursal
Before applying for a same-day loan, it’s important to keep in mind some potential pitfalls:
- High-interest rates: Same-day loans typically come with higher interest rates compared to other loan types. It’s essential to consider the impact of these rates on your finances.
- Debt trap: If not managed carefully, same-day loans can lead to a debt trap. It’s crucial to borrow responsibly and ensure timely repayments to avoid falling into a cycle of debt.
By being aware of these factors and exercising caution, same-day loans can provide the necessary financial assistance during emergencies and