For loans and other financial help from the bank, one has to meet certain criteria`s. This may include the credit history of the person, the salary slip of the person and the customer also needs to keep current with their mortgages.
What is instant approval?
Instant approval is the term used in which the lending company or financial institute lends money by surpassing the maximum number of eligibility criteria`s for a loan to avail and instantly approves the loan.
Types of instant approval loans
Instant approval can be availed for the following types of loans:
1. Credit card loans. Credit card companies promote instant approval of credit cards of their company to attract more and more customers.
2. Home loans. The home loan companies scale back on the processing of documents and decide upon a loan application within the minimum time frame.
3. Instant approval for pay day loans. Pay day loans are one of the most popular loans that employees take to address the last minute financial crisis within the family.
4. Educational loans. In case one has to avail an educational loan for submitting the fees for a course then an instant approval will help him.
Eligibility criteria for instant approval
It is important to understand the eligibility criteria that lenders undertake before considering an instant approval application.
1. The credit history of the customer. Credit history of a customer tells the payback pattern of a customer. It is difficult for a loan defaulter to get an instant approval for loans. The better the credit history the better will be the chances of getting an instant approval.
2. A guarantor. A person who can verify the person who is to get the loan and guarantee that he will pay back the loan within a certain time frame.
3. Verification of the contact address of the borrower.
Benefits of Instant approval
Getting an instant approval from a company has the following benefits:
1. The decision taken is very quick. This helps in making the customers plan further i.e. in case the customer gets the loan approved, he needs not to look for other alternatives, but in case his loan is not approved he has time to search for other options.
2. An instant approval is followed by immediate balance transfer.
3. Customers do not have to borrow money at higher interest rates from private lenders.
4. The system of instant approval of loans helps customers to take care of sudden financial crisis that he may be facing, for some reason, or the other.
5. In case of instant approval, customers do not need to furnish necessary documents at once. In normal approval of loans the processing of the documents itself takes time.