An instant personal loan can add plenty of value to those looking for quick liquidity to meet sudden expenses. For salaried professionals, such quick sources of cash can be a lifeline to deal with unforeseen costs without having to opt for more expensive sources of credit. Therefore, the ready availability of such financing remains crucial in building financial stability.

Over the past few years, there has been a significant explosion in credit for average salaried professionals, with new services and apps reaching out to the unbanked. However, the processes are often still bogged with extensive paperwork and multiple levels of approvals. Most also require a CIBIL score, keeping instant personal loans out of reach for most people.

Instant cash disbursals remain out of reach for the masses, leaving them vulnerable to financial shocks. At the time of demonetization, or the initial COVID-19 lockdown in 2020, millions across the country were left to fend for themselves with no access to liquidity. An instant loan service can add enormous value in situations such as these.

Despite the advances in this field, quick and flexible credit remains inaccessible to a large portion of Indians. However, services such as banks are quietly filling the gap with extensive credit offerings with quick 10-minute approval, requiring no CIBIL scores, and the process being entirely digital.

Personal Loans Without CIBIL - How It Works?

Most banks and financial institutions that offer personal loans without requiring a CIBIL score often require collateral, a co-applicant, or extensive previous credit activity. Unfortunately, most young professionals just starting their careers are unlikely to have any of this, where banks add value.

These banks provide you with an instant personal loan, ranging from INR 8,000 to INR 5,00,000 with a low salary requirement, starting at just INR 18,000 / month for metros and INR 15,000 / month for tier-2 and tier-3 cities. Prove that you have a steady salary at or above those figures, and you should have your loans processed right away, without any CIBIL score or credit history.

Another key feature of the platform is its seamless, hassle-free digital application process, which can be completed in less than 10 minutes without extensive paperwork or physical visits. Instead, the amount is directly transferred to your account following a quick application and review process.

Also read - 1 Lakh Personal Loan

Kotak Mahindra Bank offers an interest rate of 10.99% per annum, which is in line with banks and mainstream financial institutions. However, unlike other institutions, Kotak Mahindra Bank disburses funds based on applicants' employment and consistent salaries without requiring any credit history, good CIBIL scores, or collateral.

To further sweeten the deal, consistent repayments on Kotak Mahindra Bank can help young professionals grow their credit profile, making them eligible for cheaper loans and quicker approvals, both from Kotak Mahindra Bank, and a wide range of other banks and financial institutions.

Final Verdict

Numerous factors affect an individual's CIBIL score. However, that can entirely be put on the backburner thanks to innovative banks such as Kotak Mahindra Bank, which solely focus on your present rather than the past. In addition, the rising tide of fintech brings with it plenty of opportunities for young individuals and professionals trying to venture into the world on their own two legs.

If you can understand a few aspects regarding the workings of this model, you should be able to get funding fairly quickly using one of the instant loan apps, Kotak Mahindra Bank. With a wide range of new services and financing models, this may well be the fintech solution to widespread financial inclusion for the masses. Furthermore, a PCI DSS-certified company can be particular about your card and data security while dealing with Kotak Mahindra Bank.

With the rising tide of fintech upstarts and app-based lending services, borrowers must be aware of unscrupulous and unregulated players. With intrusive targeted ads and predatory sales practices, borrowers often get caught in unaffordable loans, leaving them in dire financial straits. There have even been instances of identity theft and bait-and-switch practices to trap borrowers, and proceeding with a bank is the safest option.

Over the years, Kotak Mahindra Bank has disbursed over 2.4 million loans worth over INR 5,000 crores and continues to achieve adoption across the board. The critical factor behind the platform's popularity has its transparency and ease of use, which gives established banks and institutions a run for their money. It is exciting to see what the future holds for instant personal loans and India's burgeoning fintech industry.