21 May, 2025 | 11:01 IST
One of the most common ways to meet financial needs is to secure a personal loan. It gives you access to funds immediately and allows you to repay the debt at a later date. Loans are available for a variety of purposes, to fulfill both short-term and long-term needs.
If you want to meet short-term requirements, one option you can consider is a cash loan. Since the need for money can pop up at any time, a cash loan can help you from exhausting your savings or emergency funds. They are usually available in a short time and can be used to meet emergency requirements.
Generally, you can use cash loans for purposes such as financing medical emergencies, bill payments, travel, purchasing a product, or any other needs.
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A cash loan is a borrowing option designed for meeting short-term requirements. Individuals and businesses can use these to meet unexpected expenses, and the advantage is that it usually takes less time to get it than a conventional loan. These loans are usually unsecured and can be repaid over specified period.
If you want to explore loan options, you can browse the websites of different banks or visit platforms like the Moneycontrol app. You can apply for a loan up to Rs 50 lakhs from eight lenders through Moneycontrol. The interest rates start at only 10.5% per annum.
Fast Disbursal
Cash loans are meant to meet a borrower’s need for money quickly. Thus, the processing time for these is a lot quicker compared to a regular loan. Sometimes, these loans are also available without documentation, thus doing away with the hassle of preparing paperwork.
Financial Inclusion
In areas with low financial literacy and penetration of financial products, it can be difficult for people to access a regular loan. Since the barrier to accessing cash loans is a lot less, cash loans can help increase financial inclusion and empower financially underserved communities.
Collateral-Free
Usually, you don’t need to provide collateral for getting a cash loan. This further reduces the hassle of getting the loan, and makes it much more attractive than a loan requiring collateral.
Flexible Repayment Plans
Your ability to repay the loan depends on your financial situation. Considering this, cash loans typically come with flexible repayment plans, so that you can make the payments as per a schedule which suits you.
No Restrictions On Usage
A cash loan usually does not come with any restrictions on the purpose for which it can be used. Thus, you will have complete freedom to decide how you want to use the loan. This can be helpful in situations where you have to take care of multiple financial needs simultaneously.
Assess Your Requirement
You must calculate the amount of money you need and apply accordingly for the cash loan.
Check the Eligibility
Every lender has certain eligibility criteria for providing cash loans. You need to go through these and verify that you fulfill these criteria.
Calculate Monthly Instalments
You can use an online EMI calculator to check the amount you need to pay monthly to repay the cash loan. You will need to enter the interest rate and the loan amount correctly to get the result.
Reach The Lending Institution
You can visit the local branch of the financial institution from which you want to secure the loan.
Fill Up The Application Form
Enter all required details correctly in the cash loan application form. In case of queries, ask questions to the officials.
Provide Documents
Certain documents, such as ID proofs and bank statements, will be required to sanction the cash loan. You need to check the list of required documents and submit them at the time of applying for a loan.
Once the loan application is approved, the loan can be disbursed within a short time. The above steps are generic in nature. The actual steps may vary across lenders.
If you are seeking a loan for a business, you will have to submit documents related to the business, such as its address proof, registration certificate, etc. or any other document(s) the lender seeks.
The above list mentions the documents typically required to be submitted to apply for a cash loan. The actual requirements can vary from lender to lender.
Are you wondering which loan is best for you? It is important to compare different loans to decide which suits you the most. You can find eight lenders providing collateral-free loans on the Moneycontrol app and website. Loans of up to Rs 50 lakhs are available with interest rates starting from 10.5% per year. It is hassle-free as the whole process can be completed from the comfort of your home.
To conclude, a cash loan can be an effective way to take care of short-term financial needs. It can be especially useful at the time of an emergency.
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