These are the loans that can be easily availed in times of need
Pre-approved personal loan is the first option because it is the quickest and easiest to obtain.
When people are in a tight spot financially, they often turn to loans if they don’t have any savings. Secured and unsecured loans are the two primary forms of loans. On the other hand, customers want to know which loans are the easiest to receive before applying for any loan.
This is because they do not want to risk being rejected by a lender while seeking credit. However, there are a few popular choices for customers regarding loans that are simple to obtain. Pre-approved personal loans, gold loans, and loans against securities, such as fixed deposits, mutual funds, and life insurance policies, are examples of these types of loans. Let’s take a look:
Pre-approved loans
The pre-approved personal loan is the first option because it is the quickest and easiest to obtain. This form of loan is pre-approved, as implied by its name, and customers cannot apply for it on their own. So, how do lenders go about making this loan available to borrowers?
People commonly maintain savings accounts in their names at banks and credit unions. Customers have the option of using credit cards in addition to debit cards. Customers with excellent credit histories, high-transactional salaries or savings accounts, lengthy relationships with the lender, and responsible repayment behaviour can get a pre-approved personal loan from a lender at an affordable interest rate.
Customers cannot apply for this loan, as previously stated. Lenders typically choose and choose their clientele to make an offer to. Customers who have already been pre-selected need only agree if they require a loan.
Customers can contact their lenders directly to find out if they are eligible for a pre-approved personal loan. Reduced processing fees, minimal documentation (basic KYC documents), instant loan disbursement, and 24/7 convenience are all perks of pre-approved personal loans.
Gold loans
A Gold Loan might help you receive the money you need quickly if you’re in a tight spot financially. Many lenders offer low-interest gold loans to customers, and the greatest part is that this loan is very simple to obtain.
If other lenders have turned you down because of your bad credit score, you can get easy approval with a gold loan. This is because lenders require one criteria for a gold loan, i.e., pure gold.
Gold ornaments and bank-minted coins serve as collateral, and lenders provide the loan amount against the overall worth of the gold as collateral for their loans.
Furthermore, Gold loans have a broader range of applicants because of fewer restrictions on who is eligible. Just provide the lender with your gold, and they’ll validate your assets and grant you the loan based on the amount you’ve provided.
Customers can choose the repayment time that is most convenient for them. Customers can also afford to pay back the loan on time, with interest rates ranging from 7% to 29% annually.
Borrowing against your assets
As the name implies, this sort of loan is secured by securities such as a fixed deposit, mutual fund, or life insurance policy. These loans are also simple to obtain because consumers must put up security or collateral as security against the loan’s value.
Customers can meet their demands by borrowing money against securities from a variety of lenders. Lenders face less credit risk because of the secured nature of the loan; in the event of a default by the consumer, the security will kick in.
In contrast to a personal loan, customers do not have to meet as many stringent eligibility requirements for a credit card. This is why these loans are so well-liked by customers.