Instant Loan Without Documents - A Perfect Guide

The need for cash may arise anytime. While we all save a penny or two for the future, sometimes it might just not be enough. Personal loans come up as the ideal solution at such times. Available without collateral and no end-use clause, personal loans can help you sail through the cash crunch moments easily. The instant loans without documents further add to convenience as one can avail the loan without getting into the cumbersome and lengthy process of loan documentation.

What is an Instant Loan?

Instant loans are primarily pre-approved loans that do not require much documentation, as is the case with traditional bank loans. They are approved really quickly without any collateral or guarantor. They are typically applied online and therefore require no written application or subsequent paperwork. Applicants who meet the eligibility conditions receive the loan credit in their accounts within minutes, hence the name instant loan or a quick loan.

Benefits of Instant Loan without Documents

Unlike earlier times when availing of a loan was troublesome, an instant loan without documents has changed the entire scenario. In addition to the No-Documentation clause, other features and benefits that attract borrowers are:

• Short Term Loan: An instant loan without documents are short term loans that are typically repaid in flexible tenures, maximum up to 5 years.
• Low Principal Value: Instant loans are low principal value loans. One can borrow a principal amount of up to Rs. 5 lakh.
• Convenient: The process to avail of an instant loan without documents online is fast and easy.
• Quick Disbursal: Borrower can get an instant cash loan in 1 hour without documents.
• Completely Digital: The process to avail of an instant loan without documents is completely digital and can be applied from anywhere and anytime.
• Paperless: An instant loan without documents is a paperless loan and requires no loan application and supporting documents.
• Hassle-free: Applying for an instant loan without documents online cuts down on the hassles involved in visiting the lender personally to complete the loan application process.
• No collateral: An instant loan without documents is a type of personal loan. It is an unsecured loan and therefore does not require collateral or guarantor.
• No end-use clause: The proceeds of an instant loan can be used to fund any event. The borrower does not need to submit an end-use certificate.

Different Ways To Avail Instant Personal Loan Without Documents In India?

It pays to have a good track. Documents validating identity, address and income are vital for all loan credits. Without these checks, the chances of loan defaults may increase manifold. However, if the borrower’s credit history and financial track record are good, one can easily avail of an instant loan without documents.

The different ways to avail of an instant personal loan without documents in India are:

Choose your existing banker

Loyalty is preferred in every domain. Customers who have a good and long relationship with their bank are the preferred ones for an instant personal loan without documents. Furthermore, as the KYC formalities are already complete with the banker, one can receive an instant cash loan in 1 hour without documents.

Choose from pre-approved offers 

Pre-approved offers are usually floated for existing customers who meet the eligibility conditions set by the lender. These offers are made depending upon your credit score and financial profile. So, taking advantage of these pre-approved loan offers will save you from submitting additional documents or initiating the loan process from scratch.

Choose the lender who offers instant loan approvals 

Some lending institutions promise instant loan approvals. They ask for minimal documentation like PAN cards, salary slips and credit scores and approve loans quickly. In case a new lender is offering better loan terms than your existing banker, it’s time to change.

Maintain a high credit score

By paying bills and EMIs on time, the customer enjoys a near guarantee to avail another loan that too at favourable terms and conditions. Personal loans are unsecured loans. Thus, lending institutions rely heavily on the borrower’s credit score. A high credit score depicts the borrower’s responsible financial behaviour and increases the chances of getting an instant cash loan in 1 hour without documents.

How to Apply Instant Loan without Documents?

The benefits of availing of an instant personal loan are far too many. One only has to follow a well-structured process to enjoy these benefits.

To begin the process of loan application, one has to decide the lender beforehand. In addition to prominent banks and lending institutions, online digital wallets like LazyPay, Credy, ZestMoney are also into the business of offering an instant loan without documents. 

Borrowers must be aware of the features and rate of interest applicable to the selected instant loan lender.

Here are five simple steps for applying for an instant loan without documents:

Step 1: Download App:

As the name suggests, instant loans are approved instantly. This is possible only through technological advancements. Thus, the process of instant loan application primarily operates through Apps. Download the application of the lender from which you plan to take a loan. The application is to be downloaded on the Smartphone via Google PlayStore for Android phones and AppStore for iOS phones.

Step 2: Setup App:

To install the App on the Smartphone, use the App navigation process. Registration on online digital wallets is completed using social media profiles.

Step 3: Set Credit Limit:

Once the App setup is complete, it will ask you to enter the instant loan amount you wish to take.

Step 4: Set Loan Tenure:

Select the loan period for which you wish to take the loan. The EMI corresponding to the entered figures will appear on the screen. Depending upon your repayment capacity, you can make amendments to the loan term or principal amount to reach the desired EMI value.

Step 5: Upload Documents: 

For existing bank customers who have a good credit score, the loan will be credited into the account. Others will be required to upload the images of the required documents like PAN card and latest salary slip through the online App itself. If eligibility conditions are met, the loan will be disbursed into the savings bank account linked to the App or App wallet itself within minutes.

What is the Eligibility Criteria for Instant Loan in India?

A few eligibility conditions are a must to avail of an instant loan without documents in India.   These include:

For Lending From Banks and Non-Banking Financial Companies

• The age of the borrower must be between 18 and 65 years
• The borrower must be an Indian citizen
• They can be salaried or self-employed
• The borrower must have a credit score above 700

For Lending From Online Mobile Wallets

• The borrower must be a resident of Tier I and Tier II cities
• The borrower must be a salaried individual
• The monthly take-home salary should be at least Rs. 15000
• The profile check will be completed through a social networking website

What to Keep in Mind While Applying for Instant Loans Without Documents?

The process of applying for an instant loan without documents is possible only for borrowers who choose their existing banking partner for their loan. If you are new to the lending company, minimal documentation is mandatory before your loan is approved and disbursed.

Thus, the following points must be kept in mind while applying for an instant loan without documents:

 Watch your credit score: 

Even a single instance of delayed payment will impact your credit score. Thus, diligently paying off bills, credit card dues and EMI instalments will help you maintain a healthy credit score. The current credit score is taken into consideration for extending loans to both existing customers and new borrowers.

Requirement of essential documentation

Basic documentation is required for every loan. In the case of existing customers, the KYC is already done. Therefore it is not needed again. But for new customers, identity, address and income proof are mandatory even for instant loans.

Rate of Interest: 

Some lenders may offer an instant loan without documents at a very high rate of interest. Be aware of the interest rate charged as it is the cost of the loan. If you have all your documents for identity, address, and income in place and have a good credit score, negotiate for a lower interest rate.

Frequently Asked Questions

✅Can I get an instant loan without proof of employment?

Yes, you can qualify for an instant loan despite being unemployed. However, this is based on certain conditions. You’ll have to submit bank account statements that reflect a healthy bank balance and also show regular income inflows like rental income. If the lender is convinced about your repayment capacity, you’ll be eligible for an instant loan.

✅Can I get a loan with no proof of income?

In case you do not have income proof to submit, try applying for it with a co-applicant or guarantor. But ensure that your co-applicant has a good credit score.

✅Can I get an instant loan without documents on a bad credit score?

Your current credit score will reflect your financial behaviour and actions over the last 36 months. But if you have got a promotion or received a salary hike recently, you can convince the lender about your current upgraded income. If the lender is convinced with your improved repayment capacity, he may approve your instant loan even on a bad credit score.

✅What are the features and benefits of instant loans without documents?

• Short term loan typically repaid within five years
• Low principal value loans up to Rs. 5 lakh.
• Convenient and easy to apply online
• Quick disbursal within 1 hour
• Completely digital and, therefore, can be applied from anywhere and anytime.
• Primarily operated through Smartphone applications, it is entirely paperless.
• Hassle-free as there is no need to visit the lender personally to complete the loan application formalities.
• Collateral free loan and does not even require a co-applicant or guarantor.
• No end-use clause is associated with the loan. 

✅How soon can I get my instant loan credit?

Instant loans are quickly approved and disbursed. For instance, ICICI Bank disburses instant loans to its existing customers with a good track record in 3 seconds! Other lending companies also approve instant loans within minutes and have a same day disbursal.

✅Are instant loans paperless?

The instant loan application and subsequent interaction between the lender and borrower happen through digital platforms. The application form is paperless. Also, the images of documents required are uploaded on the system. A KYC (video KYC), if required, is conducted to complete the process. Thus, instant loans are absolutely paperless.

✅What is the maximum loan limit for an instant loan without documents?

Different lending institutions have other maximum loan limits. However, for most lenders, it is capped at five lakhs.

✅Do instant loans without documents have a processing fee?

Yes, lenders charge a processing fee to approve an instant loan without documents. It is levied as a percentage of the principal amount.

✅What is the minimum rate of interest at which instant loans without documents can be availed?

State Bank of India charges the lowest rate of interest on instant loans without documents starting at 9.60% p.a.

✅Who is eligible for instant loans?

Banks and Non-Banking Financial Companies offer instant loans to applicants aged between 18 and 65 years who are Indian citizens. They can be salaried or self-employed and must have a credit score above 700.

Online Mobile Wallets approve instant loans for salaried individuals who reside in Tier I and Tier-II cities. They check the applicant's profile through social networking websites. The amount of loan they can apply for is linked to their monthly take-home salary.