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In our lives, we all have been in situations where we were in desperate need of money. In this article, we will explore what other options we have to ease our finances, how to get a Personal Loan instantly, and the role of CIBIL Score. Though they are many advertisements we see every day on both online and offline mediums. But availing of these Personal Loans without due knowledge may backfire.

How Banks and NBFCs are different from each other?

Banks are the organizations that offer saving accounts, current accounts, loans, and other financial products. In India Banks operate with the permission of the Reserve Bank of India. Banks can be classified into Government-owned, private banks, and cooperative banks.

NBFCs or Non-Banking Financial Companies

These are private financial institutions offering various financial Products. They are only limited to offer loans and fixed deposits. NBFCs operate in India as per the Indian Banking Laws. They offer loans at a higher interest rate than banks and usually have easier eligibility criteria.

Now, we know the difference between banks and NBFCs. There are many websites and apps working as third-party providers. These third-party providers take big loans from Banks and distribute that money into smaller loans or personal loans to be precise. They offer these small personal loans to consumers for a short period i.e. few months. However, the Interest rate is usually high on these platforms.

loan application

As consumers, we can seek loans from any of these providers. But before taking any loans, always do your own research about the Institution and the product. The few important factors are the reputation of the financer, interest rate, duration of the loan, etc.

Instant Personal Loan

Instant Loans are short-term, small loans that can be availed from the comfort of our home. There are banks, NBFCs, and other third-party platforms that are offering such loans. But not all platforms are alike.

Now that you have done the research and short-listed a few financers. We need the knowledge of the CIBIL score.

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What is CIBIL Score and How it affects your Personal Loan?

CIBIL Score (or Credit Score) is given by the TransUnion CIBIL. This score represents the credibility of the loan seeker. It is based on the past performance of an individual’s loan payments. Hence, the higher the CIBIL Score greater the odds of loan and the lower the interest rate.

CIBIL

It is advisable to maintain a good CIBIL Score. We must plan our finances accordingly to ensure a good CIBIL Score. Timely payment of EMI is one great habit to maintain a good CIBIL Score.

Loan Application

When we apply for a loan, Financial Institutions assess our loan application over certain parameters like employment status, salary, CIBIL Score, etc. One can check the CIBIL Score of anyone using the Pan Number of the subject.

All the institutions ask loan seekers for certain documents. These documents include PAN card, Aadhar Card, account information ( i.e. bank statement or passbook), etc. These documents are then verified and only after the verification, our loan is processed.

Who should you approach?

It is always advisable to only avail loans from credible government-approved institutions. There have been many reports of incidents where financers were accused of exploiting consumer’s rights. Nevertheless maintaining a good CIBIL Score will help in your future of the odds of getting any loans.

Below are few platforms that offer instant loans. But always do your own research before availing of any loan.

Government Banks

  • State Bank of India
  • Central Bank of India
  • Punjab National Bank
  • Bank of Baroda
  • Corporation Bank
  • Canara Bank

Private Banks

  • Kotak Bank
  • HDFC Bank
  • ICICI Bank
  • Axis Bank
  • Yes Bank
  • RBL Bank

NBFC

  • Tata Capital
  • Mahindra Finance
  • HDB Finance Services
  • Aditya Birla Capital
  • Bajaj FinServ

Third-Party Platforms

  • Dhani
  • Home Credit
  • MoneyTap

Kindly read every loan-related documents carefully before signing. This is not a promotional article for any of the institutions mentioned above.

For more updates like these, keep watching this space!

Contact us to get more knowledge about everything related to Personal Loans and more. or you can directly apply on our website.

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