Same Day Loans - Meaning, Interest Rate, Features & How to Apply

Same Day Loans fall under the category of unsecured personal loans and have an easier and quicker approval process. The loan amount is disbursed within a business day. 

The same day loans provide instant access to funds and are suitable for meeting financial emergencies, for example, medical emergencies, car repair costs, or repairing your laptop or mobile.

However, due to an easier approval process, the same day loan in India carries a higher interest rate compared to personal loans and has shorter loan repayment duration. 

The Same Day Loans Can be Considered Under the Following Circumstances:

• Need instant cash to meet the unexpected financial requirements
• Don’t want to borrow money from friends and family
• Don’t want to avail of the credit card balance transfer facility
• You need a very small amount which you can repay easily in a few days or months 

The popularity of the same day loan in India is slowly growing and many lenders have included it in their standard product offering. However, you should avail such a type of loan only from a reputed lender. 

Features and Benefits of Same Day Loans

The following are some of the key benefits of same day loans:

• Unsecured Loan: Same day loans don’t require you to deposit valuables/assets as collateral to avail of the loan facility. The loan is approved based on the income and credit score of the borrower. 
• Minimal Documentation: This loan type requires less paperwork and documentation, which includes documents related to KYC, employment, and income status. 
• Instant Approval: Lenders rely heavily on technology to access your creditworthiness and repayment capacity, which helps it reduce the time taken for approval. The loan applications are approved instantly and you get access to funds on the same day of submitting the application.
• Suitable for Borrowing Small Amount: The loan category is suitable for borrowing small amounts and has shorter repayment duration of 7 days to 12 months. The maximum amount one can borrow usually doesn’t exceed INR 2 lakhs. 
• Online Application Process: You can apply for same day loans online and the entire documentation and verification process is completed online.

Must Read: Different Types of Loans Available in India

How Do Same Day Loans Work?

The same day loan application and approval process are very much similar to the personal loan online application and approval process. The only difference is the reduced turnaround time, in which the loan application is approved and funds are credited directly to the applicant’s bank account within a few hours of applying.

Instant Personal Loan: An Alternative to Same Day Loans

Same day loan is a new concept in India, and only a few lenders offer the loan product. And, for borrowers, finding a reputable lender can become a challenge in a short time.

If you’re looking for instant access to funds to meet unexpected expenses, you can consider taking instant personal loans. It’s a very popular unsecured loan type in India and is offered by most lenders.

Instant personal loans are the best alternative to same day loans as it provides access to funds on the same day of applying and has a lower interest rate structure. For instance, at SMFG India Credit, the personal loan interest rates start from 13% per annum. Since the interest rates are calculated on a per annum basis, personal loans are much more affordable than same day loans, and have lesser chances of landing you in a debt trap.

The Other Benefits of a Quick Personal Loan are:

• Loan amounts upto INR 30 lakhs based on eligibility
• Longer EMI repayment tenure ranging between 12-60 months
• Flexible EMI repayments as per repayment capability
• Higher borrowing limits
• Low processing fees and transparent process 

Instant Personal Loan Eligibility 

• Should be employed in an established organisation or self-employed
• Should be between 21-60 years
• Should fulfil minimum income eligibility as prescribed by the lender
• Should have a minimum work experience of 1 year and 6 months in current company (for salaried applicants)
• Should meet the required minimum turnover (for self employed applicants)
• Minimum CIBIL score of 750
• Should have a lower debt to income ratio, indicating a trouble-free repayment tenure 

SMFG India Credit offers an online personal loan eligibility calculator, using which you can check your eligibility for the personal loan and know the maximum amount you can borrow based on your disposable income.

Must Read: Need Money Urgently? How a Personal Loan can be Helpful

Personal Loan EMI Calculator

In the case of the same day loan, the lender determines the monthly EMI and loan duration. But, with personal loans, you have the flexibility to determine the EMI amount and loan tenure based on your repayment capacity and financial commitments.

You can easily calculate EMI by using our free online personal loan EMI calculator tool. And, by adjusting the loan tenure, you can find the suitable EMI for your personal loan and make loan repayments easily without straining your finances. The tool makes loan planning easier and saves your time and energy in calculating the right EMI.

Final Words

In comparison, both the loan types look one and the same, but the big differentiator is the lower interest cost for a personal loan, and the longer tenure allowing easy monthly payments. And, with higher borrowing limits, you can go for a higher amount to meet the expenses easily and repay the amount with easy instalments.