What Can One Do For Sudden Short Term Cash Loans

Written by Vidya Kumar

October 24, 2017

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Executive Summary:  It does happen that sometimes we are in urgent need of cash. It is either a medical urgency or unexpected payment of fees for one’s child’s extra classes or the purchase of a smart phone or an appliance. Rather than going to banks for personal loans or asking favours from friends and relatives, you can choose to borrow from organizations that serve these purposes. Rupee Lend, Home Credit and i-LEND are three such institutions that provide loans for sudden needs in a hassle free and speedy manner.

​Sometimes you need small loans. It could be for an emergency situation, an urgent purchase like a used car etc. It could also be a need for a small amount to complete the purchase of a house. Maybe your driver or the peon in your office needs some money urgently. In such cases, you or the person needing the money might not want to go through the entire process of applying for a loan, processing it, the documentation etc. Sometimes loan applications are rejected by mainstream lenders. What do you do in such cases? Here are some options which are easier to avail of loans –
1) Rupee Lend
Rupee Lend is a digital finance company. It provides immediate short-term loans to people. It has a tie-up with NBFCs to disburse loans.
You can apply for a loan on their website. 
Process to avail of loans –

  • Enter the loan amount, tenure of the loan and personal details on the web page. 
  • Confirm your registration using the OTP sent to you.
  • A few necessary documents are required to be uploaded by you or shared with Rupee Lend.
  • The application is approved and and the amount is disbursed within 60 minutes into your bank account. Some banks take a little more time. But usually the amount is in your bank account within 24 hours. You can apply for a loan on weekends and bank holidays too. But the money will reach your account the next working day.

Terms and conditions –

  • Loan Amount – Rs 10,000 to Rs. 1,00,000. Repeat customers can borrow up to Rs. 1,50,000
  • Interest Rate – 0.1% to 1% per day
  • Loan Tenure – It can be from 61 days to 90 days
  • Other Details – There are no processing fees or pre-payment charges. You will get charged Rs. 500 for a bounced cheque and 1% interest on late payments.
  • Eligibility – You have to be a citizen of India, above 18 years of age and be employed or have a business or be self-employed. You need to show the capability for repayment.
2) Home Credit
Home Credit is a non-banking financial company that provides loans for personal needs such as purchase of mobile phones or two wheelers and other needs.
The process of taking a loan –

  • Visit a Home Credit Store and choose the product that you want to buy.
  • Fill out loan application form.
  • Evaluation of loan application and approval is done by Home Credit.
  • Decide on your monthly payment amount and close the agreement.
  • Make the down payment.
  • Take the product home and make sure to pay the monthly instalments. The instalments can be paid by different methods – NEFT, Direct Debit or Paying to a Payment Channel Partner of Home Credit.

Terms and Conditions –

  • Loan criteria –
Source: www.homecredit.co.in

  • The interest rate ranges from 19.99% p.a. to 42% p.a. 
  • Late payment fees range from Rs. 300 to Rs. 1900.
  • There are some charges related to processing and customer care.
  • There are charges when there is a payment bounce or if prepayment has to be made.
  • On the other hand, there is almost no documentation required and the loans are  supposedly processed within 10 minutes of getting all the details required.
  • To be eligible for a loan, you have to be an Indian citizen of 19 years or more. You should have a source of income and have at least two proofs of residential address in the area of the Home Credit India operations. 

For example, if you want to take a loan to buy a laptop worth Rs. 35000 and will make a down payment of Rs. 5000, the EMI for a 6 month loan will be Rs. 4995 . The processing fee will be Rs. 399.

3) i-LEND
i-LEND is an online marketplace or platform where borrowers and lenders can meet up and make a transaction. It works on a peer-to-peer model. People can register as borrowers or lenders after furnishing all relevant details as per RBI norms. i-Lend verifies the details and registers only those that satisfy all requirements.
i-LEND helps in the loan disbursement and monitoring process. Once the loan is accepted by the borrower, i-LEND ensures that agreements are signed between borrowers and lenders. The documentation process is done online. One borrower might have multiple lenders offering amounts totalling to the loan amount. But each lender has to lend a minimum amount of Rs. 10,000.
How does it work –

  • A borrower once registered can send loan requests on the website.
  • Lenders once registered can view borrower listings. They can decide the amount they want to offer as loan and also the interest rate. They can view borrower documentation if required paying a fee of Rs. 300 for 6 months.
  • Lenders can make offers for loans.
  • Borrowers have the choice to accept/reject offers
  • Once the borrower has accepted an offer/offers that totals the loan amount, his listing is closed for further offers. 
  • i-LEND then collects all requisite documents and executes the agreements.
  • i-LEND collects cheques from lenders and deposits them in the borrower accounts.

Terms and Conditions –

  • Loan amount is between Rs. 25,000 and Rs. 5,00,000 in multiples of Rs. 5000.
  • Repayment of loan is through cheques.
  • Borrowers are charged a one time registration fee of Rs. 500.  
  • On loan closure,  3% of the loan amount is charged as processing fee to the borrower while lenders pay 1% of the lending amount.
  • To be registered as a borrower, one has to be an Indian national who is at least 21 years old. One should have an income of at least Rs. 20,000 per month. One should have valid identity proof, income proof and bank account.
These are some useful ways of getting urgent cash for a small duration. It saves you from the process of interacting with bank representatives and long hours in documentation and processing.

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