How many times have you seen banks and loan apps advertising that they can offer you instant cash in under five minutes? Uncountable times, right? Now, how many times have you fallen for it? Almost every single time, right? We have been there too. But learning the hard way, just like your Maggi doesn’t get cooked in two minutes, even getting a loan approval in five minutes seems quite impossible.
If you might have looked at these advertisements with a more minute eye, you must have seen that ‘5 minutes’ is usually followed by a small (almost invisible) asterisk. This generally means it’s all subject to terms and conditions, and the financial institution doesn’t really guarantee you instant access to cash in just five minutes. So, it’s all just a huge marketing gimmick to grab your attention.
Whenever a quick loan app uses the word ‘instant’, they usually imply that applying for a loan through their app is a faster method than a traditional bank. Let’s be honest, even setting up your account on the loan app of your choice would easily take 20 to 30 minutes. So, how is it really possible to get instant access to cash (that too, even under five minutes)?
When loan providers use this term, they usually only consider running some basic and preliminary checks, like verifying your PAN card details or the AADHAR number, in the time frame of ‘five minutes’. The approval and disbursal of the actual loan application might take a few hours or even up to one day, depending on the lender.
Let’s look at the common reasons why an instant loan approval in 5 minutes is not practically possible, even online:
- Entering incorrect or mismatched KYC details due to typos or haste.
- Facing network issues or device compatibility issues while uploading the documents required to process the application.
- Submitting doubtful or unclear proofs of income.
- Having a low or below-average credit score.
- Facing technical verification while uploading bank statements or verification documents.
The reality is that an online instant loan app only uses eye-catching phrases to increase your curiosity (even if you do not need a loan) and ultimately push you into applying for one.
Now, there’s another thing that comes into play. Approval and disbursal are two quite different terms. You don’t get instant disbursal, but you might get instant approvals (still not possible under five minutes). Different types of loans have different timelines for approving and disbursing loan amounts. Even for pre-approved instant loans, the common timeline for getting the approval is at least 15 minutes. Quite contradictory, right? Yeah, we know.
So the next time you are using an instant loan app, keep in mind not to fall for the eye-pleasing claims because you might get the approval instantly, but the disbursal and ‘instant access’ to cash might still take up to a few hours or even a day. Do not enter the interface of online loan applications while daydreaming of getting a loan, even before you exit the app, because unlike instant loan approvals, this one is bound to break under five minutes.