A financial emergency can come at any time. Banks and financial institutions are available to cater to your business requirements. However, the sanctioning of bank loans can take time and involve tedious documentation procedures. It might not be the ideal option available to you when you need immediate cash on the same day. Thanks to the evolution of the financial sector in India, you have access to mobile phone apps that can help you to get immediate cash loans.

As the name suggests, Immediate Cash Loans are short-term unsecured Personal Loans that are available immediately on demand. Usually, the funds are credited to your account within a couple of hours of applying for financial assistance. The advantage of such Immediate Cash Loans is that the disbursal is quicker as compared to the Personal Loan options provided by various banks and non-banking financial companies (NBFCs).

• Instant credit: Usually, the applicant gets the funds into their account on the same day. Such types of loans do not incur much documentation or other formalities.

• Ease of application: One can apply for the Immediate Cash Loans using a mobile app. There is no need to fill up long application forms or visit the bank.

• No collateral: The Immediate Cash Loans are short-term unsecured loans that do not require any collateral.

• No disclosure of purpose: One does not have to disclose the purpose of the loan. It can be to meet all kinds of emergencies such as medical exigency, vacation trips, home renovation, and much more.

The eligibility criteria depend on the institution you choose to avail your Immediate Cash Loan. Generally, one should satisfy the following eligibility criteria:

• The applicant must be in the range of 21 to 55 years of age
• Indian residents can alone apply for these loans
• The minimum monthly income should be approximately 20,000

However, the individual eligibility criteria can be different from one institution to the other.

The submission of the following documents is essential for the processing of Immediate Cash Loans:

• KYC documents like Aadhaar Card, PAN Card, and other documents to prove your identity and address.
• Salary slips for the previous 6 months if you are a salaried individual
• Bank account statement for the last 6 months

• Quick disbursal: The Immediate Cash Loan disbursal takes place within a couple of hours. Thus, you get immediate financial assistance in an emergency.

• Minimum documentation: Apart from the KYC and income proof documents, these loans do not require and additional information. One can upload these documents on the app and avail the loan.

• Easy to calculate EMIs: The mobile apps facilitating Immediate Cash Loans feature easy-to-use EMI calculators online. Enter the loan amount and income to get the equated monthly instalment (EMI) instantly.

• Short-term commitments: The Immediate Cash Loans are for short periods, not exceeding 3 months. Hence, you do not have any long-term commitment.

• A high rate of interest: since you get access to quick cash without much documentation, the rates of interest on these loans is high.

• Non-certified lenders: Many non-certified lenders are available on the internet to entice people to apply for immediate cash loans. One should be careful of such lenders.

• High EMIs: Usually, the Immediate Cash Loans are for a maximum of three months. Hence, you should be ready to repay with high EMIs.

• Nowadays, Immediate Cash Loans are easy to get. However, one should be careful not to fall into a debt trap. Applying for Immediate Cash Loans frequently can also impact your credit score.

• These Immediate Cash Loans can come with a hefty processing fee. The high rates of interest, along with the processing fee, can make these loans an expensive affair. There could also be pre-payment penalties. Therefore, it is better to read the terms and conditions before proceeding to avail these loans.

• Immediate Cash Loans are ideal in an emergency. However, there could be better options, such as taking a gold loan by pledging gold with a bank.

Today, you have various NBFCs engaged in the business of providing instant cash loans.

We shall compare the features of some Immediate Cash Loan products:

How do you apply for the Immediate Cash Loans?

The procedure for applying for the Immediate Cash Loans is simple. You need to download the respective mobile app from Google Play Store or App Store. Most of these finance companies allow you to apply online through their official webpage.

What is the average time taken for approval?

The average time for approval should be around five to 15 minutes. It is an in-principle approval. The disbursement will take place after the execution of loan documents. Hence, it can take anything from two hours to 24 hours for the disbursal to take place.

Do I need to have a good CIBIL score?

Many of these Immediate Cash Loans providers approve loans to new borrowers without any credit history. However, if you have a CIBIL score, it is better to have a CIBIL rating in the range of 675 and above.

What is the average interest rate on these loans?

The average interest rate could range from 1.5% per month to even 3.5% per month depending on various factors like the loan amount, tenure, and the service provider.

How flexible is the repayment period?

Some of these lenders have minimum repayment periods starting from one day. The maximum repayment tenure does not exceed 24 months on an average.

Which is a better option, an Immediate Cash Loan or a Cash Advance facility on a credit card?

The Immediate Cash Loan is a better option, as the interest rates are less than that of the Cash Advance facility. The repayment tenure is also comparatively more flexible.

Is it a safe option to apply for a Personal Loan using a mobile app?

Yes, it is safe enough. Today, the trends are changing with the increase in the popularity of mobile apps.

Are there any hidden charges in these Immediate Cash Loans?

No, there are no hidden charges. The average processing fee ranges from 2% to 5%. Many financiers do not impose any penalty on foreclosure of the loans.

Can you apply for the Immediate Cash Loans and not avail it?

Yes, you can apply for the loan but not avail it. The companies do not credit your account unless you complete the execution of the loan documents. If you do not sign the loan documents, the disbursal does not take place at all.

Is Immediate Cash Loan a viable option?

Yes, it is a good option because you get access to immediate cash in an emergency. The conventional bank loan does not provide this flexibility.