Instant Cash Personal Loan Online for Low Income Group

Updated on: 14 Dec 2021 // 26 min read // Personal Loans
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A Cash Loan is a Personal Loan or Cash Advance extended for a short period of time, incidentally for a small amount. It is different from a Personal Loan, which is re-paid after a longer period according to a fixed schedule.

Though the nomenclature suggests “cash,” the loan amount is not offered by the said mode. The loan is disbursed to the loan seeker by mode of fund transfer.

A Cash Loan is as popular as Personal Loan because the amount is offered without any collateral, the processing is easy, and there are no restrictions on how the amount of loan is to be used.

Requirement of Cash Loans

There are scenarios wherein a cash crunch occurs, and there is an urgent need to meet personal expenses. It may not be possible for the low-income group to seek Personal Loans because their income may not match up to the banks’ eligibility criteria. Family and friends may also not be ready to part with funds to pull them through in such an hour of need. Customised Cash Loans are a resort for low-income groups in such circumstances.

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How is a cash loan applied for and when is it disbursed?

The various ways in which a Cash Loan may be applied for are:

  • Online through the website

  • Through the mobile application

  • By paying a personal visit to the branch

However, in current times, where all companies have an offering to make on the digital platform, visiting the branch is not a requirement. The process of a loan application, however, varies depending on the loan.

The entire process starting from loan application to disbursement is handled online and serves as a tool for saving time and money. The loan may be sanctioned instantly within a few minutes with minimum documentation.

Documentation for getting instant Personal Loan Disbursed

Documents are generally accepted online. In certain scenarios, representatives may visit the customer’s premises for the collection of necessary documents.

Documentation required for getting cash loan approved varies from one lender to the other. However, the general requirements are listed below:

Salaried individuals

  • Identity proof
  • Salary slips for the last three months

  • Residence proof- be it owned or a rented accommodation

Self-employed and Professionals

  • Identity proof
  • Returns filed for the last 3 years

  • Bank statement of last 3 months

Tenure of Cash Loan

Cash Loans are generally offered for short periods varying from 3 months to 24 months.

Amount of Cash Loan

The amount of Cash Loan is generally low; generally ranging from Rs. 5000 to Rs. 5 Lakh.

Who offers Cash Loans in India?

Banks generally do not offer Cash Loans. This category of loans is generally given out by a few lending companies, mobile wallets, and a few private lenders. These lending companies may be categorised as follows.

  1. Mobile-based payment applications

  2. Credit financing companies

  3. Peer to Peer lending companies

Mobile phone-based wallets

This is also referred to as a platform for digital financial services. These are the Fintech organisations who make the entire process digital by deploying the latest technologies. This mode specialises in instant approvals and quick disbursements on the basis of minimal documentation.

Mobile phone-based Cash Loans are not actual loans. They work in association with third-party creditors who are the actual lenders, and they merely act as intermediaries. For example- PayTM works in association with HCIN or Home Credit India Finance Private Limited, which disburses loans to loan seekers.

PayU- They offer excellent loan opportunities for the low-income group. Working in association with Reliance Money, they offer loans ranging from Rs. 100 to 1 Lakh for a period of 15 days to 2 years.

Mobikwik- If you have a KYC approved wallet with them, you may be entitled to an instant Cash Loan of Rs. 60,000. The minimum amount of loan offered by them is Rs. 10,000. They work in association with TATA Capital.

Bajaj FinServ mobile wallet- They work in association with Mobikwik and may extend instant loans of up to Rs. 5000.

MoneyTap- MoneyTap extends instant loans ranging between Rs. 3000 to Rs. 5 Lakh on the online platform. MoneyTap Personal Loans are available at a rate ranging between 1.08% and 2.03% per month.

Paytm- If you hold a wallet with Paytm, you would have a pre-approved loan limit depending on the quantum of transaction history you have had with them.

Besides those listed above, Kreditech Personal Loans are also expected to be a big help to the lower income group. The Germany based Company offers long duration large ticket size loans through mobile and web channels to customers of the lower income group.

Credit Financing Companies-

Credit Financing companies are also an excellent source of online cash loans. Few of these companies are

Home Credit India Finance Private Limited (HCIN)– They provide instant Cash Loans ranging from Rs. 10,000 to Rs. 50,000.

Payme India- They provide short term loans to salaried individuals only. They also offer small loans minimum being Rs. 5000.

OptaCredit Fintech Private Limited- They also provide instant Personal Loans online. The amount varies from Rs. 20,000 to Rs. 5,00,000. Their best feature is the flexibility in repayment options.

Peer to Peer Lending Companies-

This refers to a marketplace meant for online lending. Non-Banking Financial Corporations are framed under the control of Reserve Bank of India, which facilitates loans by connecting borrowers and lenders. The money is lent out by a group of investors who wish to earn through interest income earned from the borrowers. The NBFCs generally make money by acting as a bridge and earning fees in lieu of their services.

Faircent, lendbox.in, ilend and i2ifunding are prominent examples of peer to peer lending companies. The entire activity is executed online in an easy and simplified manner so as to consume minimum time.

Also Read: 4 Ways to Get a Personal Loan for Salary Under Rs. 20,000, Rs. 12,000 and Rs.10,000

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