What is Fast Loans: Features, Interest Rates, & How to Apply Online?

What is Fast Loans: Features, Interest Rates, How to Apply Online

Gone are the days, when getting a loan meant going to a bank, waiting in queue, and submitting a lot of paperwork to apply for a personal loan. Technology has made getting loans a quick and hasslefree option. Whether one needs to repair their house, has a medical emergency, or needs to buy the latest tech gadget, a fast personal loan is a decent option to consider. Fast loans are a type of unsecured loan. They are also called instant loans. Zype is one of the leading providers of instant loans with quick disbursal time. This article explains fast loans, benefits, and how to apply for one.

What is a Fast Loan?

Fast loans are unsecured loans, which means they don’t require any collateral. These loans are short-term loans that you may apply online and get approved within a few minutes. A fast loan is an option for those who need a small amount instantly. It is beneficial for small businesses or individuals who need funds on an urgent basis or in emergencies.

Key Features and Benefits of Fast Loans

Fast loans, as the name suggests, is a quick and easy way to get an instant loan. Zype offers instant loan and offers below-mentioned benefits:

Higher Loan Limit: Zype has a limit of personal loan up to ₹5 lakhs if you fulfil the eligibility criteria.

Fast Approval: Zype takes less than 6 minutes to approve loans. The fast approval makes it easy for customers to choose the suitable option as per their needs. 

Interest Rate: You can avail of fast loan with an interest rate as low as 1.5% per month with Zype

Tenure: Zype offers a flexible tenure in the range of 3 to 12 months. This helps you choose a better repayment plan.

No Collateral: You don’t have to pledge any assets when you apply for an instant loan from Zype. This eases the loan process and makes it accessible to a wider customer base. 

Interest Rates on Fast Loans

Interest rates on fast cash loans vary according to the lender. Refer to this table to understand all the applicable interest rates and charges on personal loan if you apply for a personal loan with Zype:

Type of Fee 

Applicable Charges

Interest Rate

Starting at 1.5% (monthly)

Pre-closure Fee

Processing fee from 2% to 6% on every loan

Processing Fee

Penalty interest and late fee charges on outstanding loans on a daily basis

Eligibility Criteria for Fast Loans

Eligibility criteria for personal loan vary according to lender policies. Zype’s eligibility for fast loans includes the following 

Age: Individual should be 18 and above

Citizenship: The individual must be an Indian citizen

Credit Score: Individual credit score should be 650 and above

Employment Type: The person should be salaried or self-employed.

Minimal monthly income limit: The individual should have a minimum monthly earning of ₹15,000

Required Documents for Fast Loan Approval

Every lender has a set of documents they require for fast loan approval. Zype has an easy online application process that takes only 5 minutes to complete. Upload the following documents on Zype for easy loan approval:

Mandatory Documents: Aadhar and PAN details to complete KYC details

Proof of Identity: Complete a selfie-based verification for KYC. This is an online process and you don’t need to upload any documents.

Proof of Income (optional): You need to upload a bank statement for the last 4 months if you would like to apply for a higher amount loan.

Comparing Fast Loans with Traditional Loans

 

Fast Loans 

Traditional Loans

Loan Disbursal

Fast loans are disbursed instantly within a few hours or 1-2 days.

Zype disburses loan within 24 hrs.

Traditional loan disbursal takes around a few days to weeks depending on the lender

Application Process

One may apply for a fast loan online and complete the application within minutes.

Traditional loan requires one to go to a bank, wait in a queue and submit documents offline.

Loan Amount

Fast loans are small loan amounts usually for urgent or emergency requirements. 

Zype offers an instant loan limit upto 5 lakhs.

Traditional loans are usually taken for higher loan amount requirements in case of buying a home, education loan or business capital.

Required Documents

Most fast loan lenders require minimal documentation. 

Zype requires no documents to be uploaded.

Traditional loans require a lot of paperwork and documents like bank statements, income proof, photo ID, property documents etc.

Tips for Getting Approved for a Fast Loan

If you need to get approved for a fast loan, here are a few tips you need to follow: 

Choose the Right Lender: Research various lenders offering lower interest rates. A loan with a lower interest rate and longer tenure will help you save thousands. 

Improve CIBIL Score: Most lenders require a minimum credit score of 650 and above to approve a fast loan. This credit score may vary as per the lender.

Fulfil Eligibility Criteria: Lenders in India have common loan eligibility criteria like age, employment status, credit score, work experience etc. Be sure you fulfil loan eligibility criteria before you apply for a fast loan.

Avoid Multiple Loan Applications: Apply to one or two lenders, at most, while taking a fast loan. If one applies simultaneously to multiple lenders, their credit score takes a hit and can lead to loan rejections. 

Common Mistakes to Avoid When Applying for Fast Loans

When applying for fast loans, these are some of the common mistakes many borrowers make. Avoid making these common mistakes, to increase your chance of getting fast loan approved.

Not Comparing Options: It is advisable to do thorough market research on lenders offering fast loans. Avoid going for the first lender you find. Choose a lender that offers terms and conditions as per your financial needs. There are online loan comparison tools that can help you compare lenders.

Ignoring the Fine Print: Carefully read all the terms and conditions to understand all the financial jargon in the loan documents. The loan documents mention important details like the interest rate, processing fees, payment mode and any other charges that you need to factor in. 

Applying for Too Many Loans: Simultaneously applying to multiple lenders, may affect your credit score and can lead to loan rejections. Apply to one or two lenders, at most, while taking a fast loan.

Not Choosing the Correct Tenure: Assess the right tenure for fast loan payment by using any online loan calculator tool.

Not Informed About Penalties & Charges: A lot of lenders charge prepayment fees, if the loan is paid before the due date. It is important to check the pre-payment terms to avoid any penalties and additional charges. 

How to Apply for a Fast Loan Online?

If you want to apply for a fast loan, consider an instant loan app like Zype. Zype offers urgent personal loans with fast approval.

Here are the steps to apply for fast loan on Zype:

  • Download Zype app available on PlayStore and App Store. On Zype home page, click on “Apply Now” and get started with the application process.
  • Fill in basic details like name, mobile number, PAN, and employment details, to complete your application process.
  • If you fulfil the eligibility criteria, your loan will get approved in less than 60 seconds.
  • Complete a simple KYC process by doing a real-time selfie verification and Aadhar-linked mobile OTP to activate your approval limit.
  • Select the loan amount you want to transfer along with the desired repayment tenure.
  • You will get instant personal loan disbursal directly into your bank account. 

Conclusion

Fast loan is a good option to consider for short-term financial aid in case of unexpected expenses occurring due to medical bills, job loss, home repair, travel or a financial crunch. The eligibility and approval are fairly easy to get and the loan gets disbursed in a day to two depending upon the lender. Zype offers an easy solution for getting an instant personal loan and requires no paperwork. Once a borrower fulfils eligibility criteria, the loan gets disbursed within 24 hours. 

Frequently Asked Questions

What Is A Fast Loan And How Does It Work?

Fast loans are a type of loan that gets disbursed to a borrower quickly. They usually take less time since the approval is quick and the application process is simple.

How Quickly Can I Get A Fast Loan?

Fast loans usually get approved within a few hours to a few days, depending upon the different lender policies and your requirements.

Can I Get A Fast Loan With A Low Credit Score?

Yes, it is possible to get a fast loan with a low credit score. Lenders may offer fast loans at a higher interest rate and check other parameters like employment history, bank statements etc.

How Do Fast Loans Differ From Traditional Loans?

Fast loans get approved within a few hours to a few days. Traditional loans take a longer time to get approval, around a few days to a few weeks. 

Are There Any Hidden Fees Associated With Fast Loans?

Fast loans may have some hidden charges like processing fees, prepayment charges, and documentation charges which one may not know before applying for the loan. It is important to read the terms and conditions before applying for fast loans.

How Can I Increase My Chances Of Getting Approved For A Fast Loan?

You can increase your chances of getting a fast loan approved by the following steps: maintain a good credit score, fulfil eligibility criteria, choose the right loan amount and give correct personal details while filling out the application form.

What Are The Repayment Options For Fast Loans?

Repayment options for fast loans include monthly EMIs, part prepayment, foreclosure and bullet payment (where you pay the interest amount every month and principal amount at the end of the loan tenure) 

How Are The Calculations For Fast Loan EMI Done?

Calculations for fast loan EMIs can be done through any online loan EMI calculator or manually by using the formula: EMI = [P x R x (1+R)^N] / [(1+R)^N – 1]

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