All You Need To Know About Spot Loans Offered By Banks

By Adhil Shetty | November 20, 2017

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.

All You Need To Know About Spot Loans Offered By Banks

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

Quick Disbursal

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.

Shorter Period

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.

BankBazaar is a leading online marketplace in India that helps consumers compare and apply for Credit Card, Personal Loan, Home Loan, Car Loan and insurance.

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.
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About Adhil Shetty

Adhil Shetty is the Founder and serves as the Chief Executive Officer of BankBazaar.com. Adhil has a Master’s degree in International Relations with a specialization in International Finance and Business from Columbia University in the City of New York, and a Bachelor’s degree in Engineering from the College of Engineering Guindy, Anna University. Adhil is an expert in Personal Finance (Car loan/Home loan and personal loan) and he majorly consults on investment and spends rationalization for the Indian loan borrowers. His guidance is number based with real time interest rate calculations and hence useful for consumer’s real time query.

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