Same day loans are unsecured personal loans that can be availed of to deal with urgent fund requirements between Rs. 5,000 to Rs. 25 lakh. The application filing and approval processes for same day loans online are done on the same day. Depending on your capacity, you can repay the loan within 60 months after receiving it.
The main differences between same day personal loans and personal loans are the turnaround time and the interest rates. When applying for a personal loan, the approval and reimbursement may take several days. On the other hand, a same day loan just takes a few hours. Here is a guide that explains the same day loans meaning in detail.
What are the eligibility criteria for same day loans?
The following are the eligibility criteria for same day loans. Any loan application that does not meet these criteria may be rejected:
The first requirement for same day loans is that you must be an Indian citizen between 21 and 67 years of age.
All banks ask you to submit your salary slips of three consecutive months. Self-employed individuals also have to provide proof of income. Your same day personal loan is approved if your income is stable and you can afford the EMIs. Otherwise, banks are likely to reject your application. This is because same day loans are unsecured, and banks don't want to risk losing their money.
- Your employer
If you are a salaried person, lenders want to know which organization you work for. If you work for a reputable company with sound financial health, banks are ensured that you're in a good job and will repay the loan.
- Your CIBIL score
A credit score above 750 is considered excellent. In this case, banks will have no hesitation in approving your loan. Lower credit scores may allow you to avail yourself of a same day loan, but at a higher interest rate. Your credit score is one of the most important eligibility criteria for same day loans.
- Your work experience
A full-time career for more than two years is required for you to be eligible for same day loans online. If you have been working for over two years, banks consider you a trustworthy applicant. On the other hand, if you are a business owner, you must have been in business for at least five years.
Additional Read: 5 types of short-term loans in India
Same day personal loans meaning — All you need to know
- No need to submit collateral or security
Lenders evaluate your loan application based on your income and credit history. The loan is approved when banks are confident that you can pay it back. Since a same day loan is unsecured, lenders do not ask for security or collateral.
- Less documentation
For a same day loan, you don’t need to submit as many documents as you have to while applying for a personal loan. Lenders usually require you to provide KYC information, income proof, and employment status.
- Fast online processing
You don't need to bring your application forms to the bank, and there is no need to wait for physical verification. Same day loans online are quick and convenient, and the loan amount is promptly credited into your account post-approval.
- Instant approval
Banks use technology to determine your trustworthiness and ability to repay. The verification and reliability checks don't take long, so your application gets processed quickly. Soon after your application is approved, you get a credit message on your registered mobile number.
The only drawback of same day loans is that they are expensive. Since they are made available to you for your urgent requirements on the same day, lenders charge higher interest rates on same day loans compared to personal loan interest rates.
Documents required for same day loan application
- PAN card
- UID/ Voter ID/ Driving license/ Passport
- Bank statements for the last three months for salaried people/six months for business people
- Employer’s details/ Proof of business
- Salary slips of the previous 3 months and Form 16 for working professionals
- ITR/ P&L statement and balance sheet for self-employed
- Proof of continuity of business for business owners
- Two passport size photographs
How to apply for a same day loan
- Choose your lender
Many financial organizations offer same-day loans in India. This gives you several choices. It is best to choose a lender that offers the lowest interest rates, processes your request quickly, credits the loan amount to your account as soon as possible, and offers flexible repayment options.
- Apply online
Visit the website of the lender of your choice. Fill out the online application and upload the required documents. Your bank will process your request quickly and deposit the funds in your account.
Summary: A same day loan is a type of personal loan for immediate needs, such as medical bills or automobile repairs. The loan amount ranges from Rs. 5,000 to Rs. 25 lakh, and the repayment term ranges up to 60 months. Before applying for a same day loan, you must know that it is an expensive credit instrument because the interest rates are higher than those for personal loans. However, if you have an excellent CIBIL score, you can negotiate a lower interest rate from the lender and get your loan approved within 24 hours*.
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