A cash loan is a solution to your emergency cash requirement. Imagine a situation where you have an emergency cash requirement, may be due to medical emergency, unexpected expense or anything else. The first thing you do is arranging money from the emergency fund. However, if your cash requirement is not fulfilled by an emergency fund you have no other option but to approach your friends or relative for a short-term loan. It is one of the best and recommended option which can save time. It is extremely cost effective as you need to pay extra interest in most of the cases. If friends or relatives are unable to extend help you have no other option to approach your bank for a loan.
If you have instant cash requirement for short tenure and your relatives or friends are not ready to help you, you can opt for a cash loan. Here is a complete guide about Cash Loan and procedure for applying for a cash loan.
What is Cash Loan?
Cash Loan is a perfect solution for your short term small cash requirement especially if you are from a low-income group. Cash loan is nothing but advance loan or personal loan. Cash Loan is a completely online process where one can obtain instant cash loan in a few minutes anytime, anywhere with minimum documentation.
A basic difference between a personal loan and cash loan is a cash loan is offered for small tenure and small amount. A cash loan repayment can be done anytime and a loan can be closed before the tenure or extended also based on requirement.
Who offers a cash loan in India?
Cash loan is not offered by most of the banks. There are few lending companies and mobile wallets offer these type of financing. Apart from that, there are several personal lenders who offer cash loan. The tenure of this loan is short and varies from 3 months to 24 months. The cash loan amount is in the range of Rs.5000 to 5 Lakh.
The lending companies offering cash loan are categorized as –
- Peer 2 Peer Lending Companies
- Mobile Phone-Based Payment Apps
- Credit finance companies
Let’s try to understand each category in detail.
Peer 2 Peer Lending – Online marketplace
Peer 2 Peer Lending companies are non-banking financial companies that operate online. These companies are governed by RBI guideline. Few best P2P lenders in India are Faircent,i2ifunding, lendbox.in, i-lend etc.
Peer 2 Peer companies do not offer loan by themselves they just offer a platform on which money is lent by individuals. The loan offered on this platform is known as a cash loan. Borrowing a loan via P2P is easier and less time-consuming.
Mobile Phone based Wallet
Mobile Phone based wallet is another way to get a cash loan or personal loan. The main service of the mobile wallet is digital payment. Advantages of taking a loan from the mobile wallet are minimum paperwork, faster processing, and disbursement etc.
Few mobile wallets that offer loan are given below.
Paytm – Paytm offers pre-approved collateral free loans based on transaction history.
MobiKwik – MobiKwik wallet offers an instant loan up to Rs.60000 to the customer in association with Tata Capital. The loan amount starts from Rs.10000. This loan facility is provided only if your MobiKwik account is KYC Complaint.
Bajaj Finserv Mobile Wallet – Bajaj Finserv has a tie-up with MobiKwik to offer instant credit facility to the customer. The customer can use this wallet to get an instant loan up to Rs.5000.
PayU – PayU India has recently tie-up with reliance money for offering instant cash loan. PayU Money will offer loan in the range of Rs.100 to 1 Lakh for a tenure of 15 days to 24 months. It is an excellent opportunity for a low-income earner looking for a short-term loan.
You might have observed that mobile wallets are not offering loan directly. Mobile Wallets have tie-up with third party creditors to lend money. This is a similar arrangement like P2P where individuals are lending money to the customer.
Credit Finance Companies
Apart from Peer 2 Peer companies and mobile wallet cash loan for short term is also offered by credit finance companies. The process of getting loan by these companies is completely online. Few credit finance companies offering loan are –
Home Credit India Finance Private Limited (HCIN) – Home Credit India Finance Private Limited provides mini cash loan up to Rs.50000. The loan amount starts from Rs.25000. It is instant loan facility and completely online.
OptaCredit Fintech Private Limited – Opta Credit provide short term instant loan from Rs.30000 to Rs.50000. It is completely online with flexible repayment facility.
Payme India – Payme India is online lender that provide short term loan only to the salaried individuals.
Please note that credit history and income details matter a lot for getting approval of cash loan and personal loan. If your credit score is poor or your income level is too low your loan application might get rejected.
Documents Required for getting Cash Loan
The document requirement varies from lender to lender. However, in general for salaried individual following documents are required.
- Last 3 Months Salary Slips
- ID proof
- Residence Proof – If you are living in the rented house you need to submit home rent agreement copy
The document requirement for businessmen are different. Companies generally ask for last three years returns and bank statement for loan.
All these documents are required in the soft copy as you need upload it on the website or in the app. In some cases, company executive will visit you for collecting the documents.
How to Apply for Instant Cash Loan?
The method of applying instant cash loan is different in all the cases mentioned above. The steps you need to follow in each case are given below.
- P2P lending – You need to visit website of P2P lender and register as a borrower. You will be asked multiple questions about your finance health. Once you are registered you can apply for loan online.
- Mobile Wallet – To avail loan from mobile wallet you need to download application on your mobile and register with your mobile number. You will be asked various KYC details. Once you fulfill the requirement you will be eligible to apply for the loan.
- Credit Finance Companies – Most of credit finance companies offers loan online on the website. However, in few cases where document identification is required you may need to visit credit finance company office physically.
Have you applied for Instant Cash Loan Facility? Do share your experience in the comment section given below.