An instant loan is more convenient to obtain than a medical loan as it requires less paperwork and generally only needs KYC verification, and financial and credit history as parameters for eligibility
NEW DELHI :
New DTo get an instant personal loan approved, all that you generally need is to have a good credit score and to fill an online application form. Availing medical personal loans, however, requires more than that. You will need to furnish your employer details, salary slip, bank statements, form 16/ITR, etc. to get such loans approved.
Let us now take a closer look at how instant loans differ from emergency medical personal loans.
Zafar Imam, chief executive officer (CEO) of FinShell, a financial services brand that powers Oppo Kash and Realme PaySa, said that there are several differences between instant loans and emergency medical loans. The most primary one is that of the loan amount. The former ranges between Rs1,000 and Rs50,000 whereas the latter is typically between Rs50,000 and Rs40 lakh. In terms of processing, it takes roughly 15 minutes to an hour for instant loans to get approved and disbursed. Medical personal loan approvals could take 24 hours to 72 hours. It is primarily because of the higher ticket size and a different underwriting method. "Medical emergency loans have a higher loan tenure of up to 5 years or at least a year. The tenure of instant loans could be from a few months to a year at most. Besides, the rate of interest is different for both these products. While a customer could shell out around 24% to 36% per year on instant loans, the same could be anywhere from 11% to 24% for medical emergency loans," Imam added.
Abhishek Soni, co-founder and CEO, Upwards said, "An instant loan is undoubtedly more convenient to obtain than a medical loan as it requires less paperwork and generally only needs KYC verification, and financial and credit history as parameters for eligibility. Besides, in the case of instant loans, since the process is completely digital and the loan can be sanctioned within a few hours, it makes the entire process seamless and easy for the customer. It is important to have a ground presence and instant loans are available on several online applications nowadays."
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