Spot loans can be availed by a person with poor credit history too. You can apply for a spot loan online, over the phone or through your ATM. Read on to know more about its features.
Spot loans are unsecured loans given by banks in the form of Personal and Business loans. This kind of loan helps you deal with emergencies of any kind. While providing such loans, banks may or may not check your Credit History. It means even a person with a poor credit history can avail such loans. However, the rate of interest for spot loans will be dependent on the credit history; the better the history the lower the rate and vice-versa.
Features Of Spot Loans
The most beneficial thing for the customer is that banks take very little time to disburse such loans, sometimes even less than 10 minutes.
Higher Rate Of Interest
The rate of interest on spot loans is higher than regular loans as they are unsecured loans. This means banks do not have any collateral to fall back on in case the borrower defaults. Such loans, therefore, must be resorted to only in case of dire emergencies.
Spot loans are given for a shorter period as compared to regular loans and don’t go beyond 5 years.
Easy Application Process
You can apply for a spot loan online, over the phone or through your ATM with minimum documentation. Of course, you can visit your branch also for securing such a loan. You just have to fill in your personal details and contact details like name, phone number, email ID, etc., and your loan amount is transferred to your bank account.
The process for deciding on the quantum of the loan and its disbursal is in many cases completely automated, and if you fulfil the pre-determined criteria you get the loan without any hassle. A higher repaying capacity means you can apply and get a bigger loan.
Who Can Apply?
This kind of loan can be availed by almost any person over 18 years of age with a valid ID and residence proof, and a valid phone number or e-mail ID. It does not matter if the person is employed or unemployed but the person must have an operational Savings Bank Account.
Such Loan Is Helpful For Those:
- With bad credit history which makes it difficult for them to apply for a regular loan
- Don’t want to depend on family or friends in case of a financial need
- Who need instant cash
- Unemployed people who can’t take a regular loan but require instant cash to tide over their financial difficulties. However, in this case, the period will definitely be shorter and the rate of interest could be higher
- People who don’t want to use their Credit Card cash advance can avail the benefits of spot loans offered by banks
- Businessmen and entrepreneurs who are in need of some urgent money
In short, a spot loan is an easy and hassle-free way to tide over your immediate cash crunch quickly and efficiently.