Instant money loans: How do they work?

Step by step procedure to get instant personal loan

There are times when we are in unexpected situations in need of instant money but don’t have funds. It can be for a medical expense, to pay for bills or some other emergency. None of us wants to be in such dire cases, but unfortunately, such events can’t be foreseen and hence, no matter how much you want, you can’t avoid it. So, is there no solution?

Thankfully, now we have an answer for this. Where? On your mobile phone! No, we are serious! Your mobile phone has a solution for such emergencies. This solution is called “Instant Loan.” Now, it might be difficult for you to fathom all the possibilities surrounding the borrowing of personal loans. However, they are not as risky as people say. 

To know how instant money loans work, keep reading the article further. In this, we have covered all the possible places from where you can borrow the required amount, along with the pros and cons of every lending option. 

About Loaney

Loaney is an online platform where you get instant money loans in India. In this online platform, the borrower is given an instant money loan online. Loaney is known for its hassle-free services, wherein one can borrow instant loans without CIBIL. 

This online platform approves the request for an instant cash loan in no time and registers the user to get a smooth experience for borrowing a personal loan. The registered users are also given a detailed report on how they have to repay the loan and step-by-step guidance to the payment process. To avail these, the user has to register themselves on the website and follow the process as defined by the online platform. 

Instant Money Loans In India

As the name suggests, ‘instant loan’ is the lending of money from an organization in exchange for repayment of the loan along with substantial interest rates. While you, no doubt, get instant funds in your account, the interest rate is considerably high. 

Moreover, another thing to note is that many companies claim to offer ‘instant money loan online.’ Still, even after verification and approval, they take a considerable amount of time to provide you with the agreed funds. Hence, it is essential to borrow loans from only trusted sources, such as Loaney. Online lenders such as Loaney provide instant cash loans without any delay. When they say that they will provide an instant loan without CIBIL, they mean it. 

Another notable factor here is that most of the instant loans are short-term loans. On average, you get less than a year to return the money with interest. In most cases, for loans less than ₹ 10,000. The returning period is less than 3 to 4 months. 

Do instant money loans really work?

Yes, it’s okay to be sceptical regarding borrowing instant money loans online since we all have heard numerous scams and stories, but genuine instant money loans do exist, and yes, they work! You will be required to submit a few documents like your PAN Card, Aadhar Card and KYC verification. Through this, the loan providing companies will check your credit score and verify your credentials. 

Once they have verified, which takes less than 5 minutes, you will get several options from which you can select a loan based on your requirement. You must also note the interest rate and assess your options carefully before claiming a loan. 

Pro tip: Loaney, a fast and hassle-free instant money loan providing platform. Just register on their website and verify your credentials. Once your verification has been done, you will receive the money in your registered bank account in just a few minutes.  

What are the Different Types of Instant Money Loans?

Different types of money loans

As we have discussed earlier, instant loans are extremely beneficial in emergencies, especially when you don’t have sufficient funds. However, instant loans come with high interest rates. Still, in such situations, it is the “instant” ability of money being offered that matters. 

But are there other types of Instant money loans? Fortunately, yes! Here are some other instant money loan providers: 

  1.  Online lenders

Online Lenders are people who offer fast loans online and ensure a hassle-free process. Online lending organizations, which require your credit details, online lenders use predictive analysis to read out your spending habits by assessing your data. This is very useful for first-time borrowers or people who don’t have a history of borrowing. 

Through their thorough analysis, online lenders decide whether to proceed or not. If you get the nod, you will receive funds in less than two working days. 

  1. Peer-to-peer (P2P) loans

As the name suggests, through peer-to-peer loans, you can borrow money from a person rather than banks or organizations. 

People with extra funds usually lend their money to borrowers for high interest rates. 

Pros of Personal LoansCons of Personal Loans
Relatively low-interest rates A bad credit score can hamper your loan approval process. 
Usually, no collateral is required. Approval of P2P might be difficult if you don’t have an apt credit score. 
The repayment tenure is comparatively high. 
  1. Payday Loans

A payday loan is based on a system of exchange, where you receive instant money from the payday lenders in exchange for returning the money along with interest rates on the day you receive your next pay cheque. 

The duration is less than a month and this loan should be availed only when you’re in dire need of funds. 

Pros of Payday LoansCons of Payday Loans
There is no shortage of Payday lenders.Due to its shorter tenure and higher interest, the amount you pay is much higher compared to other forms of loan. 
Receive instant emergency funds.The tenure to repay is very short, sometimes even less than a few weeks. 
  1. Payday Alternative Loans (PALs)

Some credit unions offer Payday Alternative Loans or PALs to save the borrower from the risk of high-cost payday loans. The tenure to pay back the PALs is comparatively higher, and the interest rates are fairly low.  

From a finance point of view, PALs are a better option than payday loans, especially for smaller amounts. 

Pros of PALsCons of PALs
Available for smaller loansOnly works for small amounts. 
Minimal application fees. While PALs are offered at cheaper interest rates as compared to Payday loans, they are still expensive when you compare them to other loans. 
Competitively longer duration to return the money.
  1. Auto Title Loans

A rather risky loan method where you have to use your car as collateral in exchange for instant cash. You can also use another vehicle, provided they have similar value as the loan you will take. 

To proceed with the loan, you have to temporarily give your vehicle’s possession to the lender. If you can repay the amount with the interest rate, you get your vehicle back. 

It is advised that one should avail loans in this method only when they are 100% sure that they can repay the loan in time, else they will lose their mode of transportation. 

Pros of Title LoansCons of Title Loans
Get instant cash. The total cost is comparatively more than other types. 
No credit checks are required. You can lose your vehicle if you fail to repay the loan. 
  1. Pawn Shop Loans

Pawn Shops follow a unique type of loan system where you have to keep a valuable item with them in exchange for cash. You get a time limit under which you have to repay the loan to get the value back, or else pawn shops have the power to sell off your belongings to the public and recover the money. 

However, if you successfully return the money in time, you will receive your valuable belongings back. However, there are additional charges like storage fees, setup charges, along with the interest rates. 

Pros of Pawn Shop LoansCons of Pawn Shop Loans
A smart exchange of money for valuable to avoid credit checks. All the additional charges can enhance the cost significantly. 
It won’t affect your credit score even if you’re unable to pay back the loan. Higher interest rates. 

Important Points to Note on Instant Money Loans

  • Determine The Predatory Lenders And Try To Avoid Them

There have been numerous cases where people have been the victim of fraud while borrowing money from moneylenders. While borrowing instant money loans online in India, is safe, however, many such lenders are not verified by the government. These are the fraud lenders who prey on people’s vulnerabilities and misguide them only to hoard their money for malicious needs. 

It is often noticed that these fraud cases report the use of unrealistic advertisements and offers to attract people to the scheme of instant money loans. However, as intriguing as it might sound, always remember that any genuine lender like Loaney would always abide by the government set rules to run their online portal. Any fees to register for the loan or approval is never charged by the borrower from any genuine lender. 

  • Keep A Keen Record Of the Cost

Many online lenders do provide instant money loans but have much higher interest rates. Hence, when you borrow a loan from an online lender, make sure to keep a track of the interest rates and the stipulated tenure to repay your loan. Tally the figures with your monthly payment amount. Therefore, to ease up this whole process, online platforms like Loaney provide a loan calculator in which the monthly payment is calculated and given to the registered user. 

Another word of caution is that when you take an instant money loan in India, it is not necessary to have collateral, you can always borrow a loan where the bank, credit union or the online lender will lend you money depending on your income and credit score. 

  • Getting approved

Getting a loan approval needs thorough research on your CIBIL scores. CIBIL score is a three-digit score assigned to you depending on various factors such as your income, expenditure, timely payment of bills etc. 

In terms of approval of instant loans, the two major things that a CIBIL score is based upon is your income and your credit. 


The credits highly depend on your past loans and remaining debts. The lenders look for any borrowed money that needs repayment or any debts that need to be paid. It all needs a clean record to get instant approval of the loan. The credit score assigned to you must be more than 750 to get a smooth approval for the loan. 


When lenders approve your loan, income is the key factor that they look at. They ensure that you can repay the amount you have taken as a loan. The lenders check the debt-to-income ratio and ask for your transaction and payment history. 

Sometimes, the loans are approved instantly, and the amount is immediately transferred into your account. In Loaney, a similar pattern is followed where the instant loan without CIBIL is approved in no time and the borrower can put the money to use instantly. 

How does it work?

While it is said that many instant cash loan lenders don’t check the credit scores of the borrower, it is a standard practice which you must fulfil to be eligible for the loan. There are many lenders, and hence, the operating procedures might differ, but the whole process of availing an instant loan can be broadly classified into four simple steps – 

  1. Register/ Sign-up – The first step towards getting an instant loan is registering yourself on the platform through which you will borrow the funds. 

The sign-up process is a regular one with standard details such as name, age, address, parents details and job details. 

  1. Verify your KYC – In this step, you will require some documents such as a PAN card, address proof which can be verified through your AADHAR card, passport, driving licence or any other official government-approved card. 

You will then be asked about your details regarding what you do, whether you’re a student or a working professional, along with a few details about your institution.

  1. Credit Scores – They will check your credit score using your PAN card. Ideally, if your credit score is more than 700, there will be no hassle in the process.  Finally, when all the credentials have been verified, you will receive the green signal from the lenders. 
  1. Avail the Loan – The final step towards availing of the money is to put in your bank account details. Be very careful and vigilant while giving the details and ensure it’s all correct. Once you have set in your details correctly, you will see the funds transferred to you without hassle. 

  Other Ways to Get Funds Quickly

Applying for personal loans is the safest option when lending money, however, taking out loans for small expenditures can sometimes take a toll on your pocket when you do not have enough credit to repay them. 

Since that is not the only option available, here is a list of options you can consider borrowing money from 

  1. Payroll advance

There are firms where employers approve advance payment for emergencies. In such situations, a part of an amount from your pay cheque is paid earlier than your actual payday and the remaining of the amount is credited later on the actual payday. 

  1. Sell stuff

There will always be stuff that you would no longer need. Hence, instead of keeping them with you, you can put the items on sale and find genuine buyers and sell these items so that you can use the money received for some useful purpose. 

  1. Help from your friends

This might not be a very feasible option, yet, you may seek help from trusted family members and friends. 


  1. What are the benefits of an instant loan? 

While we have discussed in length both pros and cons of instant loans, the most significant benefit is how it helps you sustain in emergencies where you don’t have sufficient funds. 

  1. How does the EMI for an instant loan get calculated?

The EMI for an instant money loan is based on various factors but it is largely influenced by the interest rate, the duration for repayment, and the total sum borrowed. 

  1. How can I increase the chances of getting my loan application approved?

Having a credit score of more than 750 will ensure that your instant money loan application is approved. 

Even a credit score of 700 is considered decent enough for loan approval. In simpler words, the more your credit scores are, the more likely your loan application will be approved. 


Getting instant personal loans are necessary to make big investments. Being able to put forth all the money from your savings is neither an all-time safe plan nor is it smart to spend all your savings at once. However, it is also necessary to have some surety regarding the instant personal loan that we are borrowing from an online lender. 

While we continue to make such smart choices for investments through personal loans, we hope that this article turned out to be helpful. Now that you know how effective instant money loans are and the various options through which you can get instant money loans, we hope you make smart choices for investments.