Uses of an Instant Loan

Instant loans are a category of personal loans that are usually disbursed within a few seconds, hours or days by lenders. These loans have minimal document requirements, making the disbursal process hassle-free and fast. There are multiple uses of an instant loan, as lenders do not provide this loan for specific purposes, unlike a home loan, car loan or others. Learn about instant loan uses here in detail to meet your fund needs within a short period.

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Instant Loans for Debt Consolidation

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Borrowers in India often take multiple loans to meet their financial needs. For instance, a person (Mr X) might have taken a home loan, a car loan and a personal loan to buy a house, a car and for other personal needs. Thus, Mr X has to pay three EMIs (Equated Monthly Instalments) for all the above-mentioned loans.

This might create challenges for the borrower, as he has to track three loans separately. However, debt consolidation can help him pay off all three loans and continue a single personal loan with one EMI payment per month.

Mr X can take an instant loan to pay the consolidated loan amount of his home loan, car loan and previous personal loan. He would have to pay the EMI for the instant loan alone, not the other loans. This is a significant advantage for borrowers, as it simplifies their financial management by replacing multiple EMIs with a single payment. 

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Instant Loans for Emergencies

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The uses of an instant loan vary significantly, wherein an individual can borrow money for emergencies as follows:

• Medical Emergencies

Medical emergencies are uncertain and might arise at any time. Even if individuals are covered under medical insurance, they might have to co-pay at hospitals. They might require funds for doctor consultation fees and additional money for medicines. Opting for an instant loan can provide the necessary financial support to meet their medical bills during emergencies.

• Unseen Expenses

Unseen expenses might include certain predictable expenses beyond the regular expenses. It might involve funds needed for sudden car breakdowns, spontaneous travel plans or tuition fee hikes. In case an individual faces a financial deficit at the time of paying these expenses, he/she might opt for an instant loan. 

• Funeral

Funerals can be costly, involving various expenses such as cremation and post-cremation rituals. Recognizing the financial strain these situations can impose, many financial institutions offer instant loans specifically for funeral expenses. Borrowers can rely on these loans to manage the costs and ensure a dignified farewell for their loved ones.

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Instant Loans for Unexpected Home Repairs

Financial institutions often offer loans to borrowers for home repair. These loans are usually available as personal loans or a top-up on existing personal loans. Borrowers can use the funds availed from these loans for home renovation, repair, furnishing or maintenance. 

These loans might be known as home improvement loans at different financial institutions. Choosing an instant loan for home repairs and improvements allows you to manage your finances more effectively, without disrupting your budget.

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Instant Loans for Travel and Relocation Needs

Lenders in India often provide personal loans for travel and vacation expenses.  If you have a planned vacation in the coming months, you can apply for an instant loan, which is a form of personal loan, designed for such needs.

In addition, many lenders provide financial assistance to individuals needing funds for relocation. Whether you are moving within the country or abroad due to personal reasons or a job transfer, relocation can be costly.

While employers might provide a certain amount to individuals during job-related relocation, individuals might need additional funds. Acknowledging this need, lenders provide instant loans to individuals considering relocation within the country or abroad. This highlights one of the prominent uses of an instant loan for borrowers. 

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Instant Loans for Wedding or Events Expenses

Individuals may choose to celebrate significant life events in a grand manner, but these celebrations often come with hefty expenses. Here are some of the key occasions where an instant loan is commonly used: 

• Wedding

Indian weddings are cost-intensive as they include multiple rituals and a huge social gathering. With a long guest list to celebrate new beginnings, weddings in India typically include catering services, decorations, venues, and numerous other expenses. Given the high costs, an instant loan can be a practical solution, often referred to as a marriage loan. 

• Anniversary

Celebrating a wedding anniversary is often a priority for many married couples, often involving celebrations with close friends and family. To fund such special occasions, individuals can take instant loans. Thus, opting for an instant loan for marriage or anniversaries is quite common in India. 

• Birthday

Just like weddings and anniversaries, celebrating children's birthdays with friends and family is a common tradition with several individuals wanting to celebrate their own birthdays like large-scale events. The uses of an instant loan in this case include utilising funds to organize memorable events without worrying about finances.

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Instant Loans for Vehicle Financing

Usually, lenders in India offer vehicle loans categorised as four-wheeler or two-wheeler loans for vehicle financing. However, if you, as a borrower, face issues with a vehicle loan approval due to eligibility factors, you can opt for an instant loan to acquire the required funds. There can be instances wherein a car purchaser might need only a portion of the car value as a loan. In such a scenario, if the vehicle loan repayment value is higher, you can alternatively take an instant loan. 

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Instant Loans for Business Cash Flow Issues

Financial institutions have specially designed loans for business needs. However, self-employed individuals might opt for an instant loan if they face challenges securing a business loan. This helps self-employed and professionals meet their cash flow needs and operate their businesses seamlessly. 

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Final Word 

The uses of an instant loan are diverse, ranging from social event celebrations like weddings to vehicle financing, home renovations, medical expenses and more. Moreover, for business owners struggling to secure a traditional business loan, an instant loan can be a valuable alternative to address cash flow needs. With Jar, you can access an instant loan of up to ₹5 lakh, providing quick financial relief to meet your emergency fund requirements efficiently and without hassle.