If you need money urgently and the requirement does not qualify for a specialized loan category such as a car loan or a business loan, it is advisable to opt for a personal loan.
While one typically applies for a personal loan from a bank or an NBFC (non-banking financial company), one can consider opting for an instant loan which is also offered by a slew of fintech providers through mobile apps.
There are some key differences between a typical personal loan and a direct loan in terms of the loan amount and repayment period. While a personal loan is preferred for a long term, for example 3 to 4 years; An instant loan, on the other hand, is a short-term solution to meet urgent financial needs.
It is striking that the differences between the two loan forms are sometimes not too clear. Therefore, you may wonder whether a direct loan is preferable to a personal loan or vice versa.
Here we provide an overview of the top use cases for claiming instant personal loans,
Instant Personal Loan: Main purposes for claiming it
Debt consolidation: You may want to consider taking out a personal loan right away to consolidate several high-interest loans or credit card debt into a single, manageable payment.
Higher education: One can explore the idea of funding advanced education, professional certifications, or foreign studies.
Wedding costs: One can take out an instant loan to cover the costs of expensive items such as venue, catering or gold jewelry, which are often non-negotiable in Indian weddings.
Home renovation: Sometimes a direct loan can be a good option to finance home improvements, painting or structural repairs.
Travel: It can also be used to finance leisure trips, family trips or religious pilgrimages.
Buy gadgets: You can consider taking out a loan to buy smartphones, laptops or essential appliances like air conditioners or washing machines.
Rental guarantees: One may consider paying security deposits if you are moving to another city for work or study.
Emergency repairs: There may be a situation where you have to pay to cover sudden breakdowns or accidents involving personal vehicles.
Festival releases: An instant personal loan can be an option to finance purchases, gifts or celebrations during festivals such as Diwali, Eid or Christmas.
