If you are in an urgent need of money and the requirement does not qualify for a specialised loan category such as a car loan or a business loan, then it is recommended to opt for a personal loan.
Although one typically applies for a personal loan at a bank or an NBFC (non banking financial corporation), one can consider opting for an instant loan offered by a slew of fintech providers as well via mobile apps.
There are some key differences between a typical personal loan and an instant loan in terms of the loan amount and the repayment tenure. While personal loan is preferred for a long tenure, say 3 to 4 years; instant loan – on the other hand — is a short-term fix to meet urgent requirements of funds.
Notably, the differences between the two forms of loan, at times, are not too clear. Therefore, one may wonder whether instant loan is preferable over a personal loan or vice versa.
Here, we list out the top use cases to claim instant personal loans,
Instant personal loan: Key purposes to claim it
Debt consolidation: You can consider raising an instant personal loan to consolidate several high-interest loans or credit card debt into a single, manageable payment.
Higher education: One can explore the idea of financing advanced education, professional certifications, or overseas studies.
Wedding expenses: One can raise an instant loan to cover the costs for big-ticket items such as venue, catering, or gold jewellery, which are often non-negotiable in Indian weddings.
Home renovation: Sometimes instant loan can be a go-to option to fund home improvements, painting, or structural repairs.
Travel: It can also be used to finance leisure travel, family trips, or religious pilgrimages.
Buying gadgets: One can consider raising loan to buy smartphones, laptops, or essential appliances such as air conditioners or washing machines.
Rental deposits: One can consider paying security deposits at the time of moving to another city for work or education.
Emergency repairs: There could be a situation wherein you have to pay to manage sudden breakdowns or accidents for personal vehicles.
Festival spending: Instant personal loan can be an option to fund purchases, gifts, or celebrations during festivals such as Diwali, Eid, or Christmas.
