What is the best option for you to access collateral-free instant loan?

What is the best option for you to access collateral-free instant loan?

Finance & Accounting

GlobalLinker Staff

GlobalLinker Staff

7 Aug 2020, 13:51 — 3 min read

Imagine you have the need to access a small amount of loan collateral-free for an immediate requirement. What are the options before you to access the instant disbursal of such a loan?

 

In such situations, one tends to either borrow from friends or family or the easiest option – swipe their credit card.

 

But let us examine all options available and why instant overdraft may be your safest bet.

 

Friends and family

Friends and family may be willing to extend a collateral-free loan. But in case of any misunderstanding on loan terms or delay in its repayment, could lead to souring of relationships, potentially forever. This is by no means a healthy prospect.

 

Personal loan

Although one of the most preferred and used options, it can lock you down in the EMI cycle for up to 5 years. Also, a personal loan is a relatively high-interest rate that one ends up having to pay for the entire loan period. For instance, if you get a loan of Rs 10 lakh for three years; even if you foreclose the loan within six months, you end up paying foreclosure charges. 

 

Instant Overdraft

Instant Overdraft provides unsecured instant overdraft facility to current account bank customers which makes it collateral-free. Basis customer’s transaction history, the customers are given Instant Overdraft limit, the disbursement is immediate and does not require any paperwork. Here the customer can select desired limit for disbursement.

Advantages of Instant OD are:

- Immediate disbursement of the loan
- Minimal documentation required. In case of an online platform—paperless processing
- Pay interest only on the amount utilised
- No collaterals
- No foreclosure/ prepayment charges

This can further help you utilize the instant disbursed amount for any medical emergencies, paying off employees in need, long-standing vendor payments, bid for a contract, marketing spends or fulfilment of orders, etc.

 

Overdraft is thus a lending medium that caters to your working capital/ emergency requirements and provides instant disbursement with minimum hassle.

 

Also read: Credit Card Vs Overdraft: Which is better

 

Image source: shutterstock.com 

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GlobalLinker Staff

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