Personal loans and instant personal loans are both financial tools developed to meet your urgent financial needs. While both of them work similarly, there are a few differences between them. 

Instant personal loans are an entirely online personal loan product. They help you meet ends in a difficult financial situation. On the other hand, a standard personal loan is a conventional loan that takes some time to get processed and approved.

Both types of personal loans are readily available, having the potential to provide financial assistance. However, an instant personal loan has advantages over a standard personal loan. But the best option for you is dependent on your specific needs.

Understand both personal loans and instant personal loans and their difference in detail in this article. Choose an option that makes your life easier.

Main advantages of an instant personal loan over a personal loan

Here are some key advantages of an instant personal loan over a personal loan.

1. Hassle-free process

Instant personal loan offers a much smoother experience as compared to a normal personal loan. The online processing of instant loans is the best part as it makes getting a loan convenient for you. You can apply for a loan in minutes from the comfort of your home. 

The online loan model is such that there is no hard work and stress associated, making the process completely hassle-free for you.  

2. Online processing

As discussed above, online processing is one of the best benefits of choosing an instant personal loan over a personal loan. Every step involved in loan processing, from application to disbursal, is online for an instant loan. You can easily apply for an instant personal loan online on a web portal or over a personal loan app of your choice. 

The approval process of instant personal loans is entirely automated. So, instant loans are approved faster than personal loans. The instant online processing works in your favour when you face a time crunch and need funds as quickly as possible.

3. Privacy is maintained

When you opt for an instant personal loan, your data privacy is wholly maintained. Digital lenders are required by law to maintain privacy policies and strictly adhere to them to keep their customers’ privacy intact.

4. Minimal paperwork

The instant personal loan process involves zero or minimal paperwork. You can easily apply, be eligible, and avail of an instant loan right from your home. The online documentation process needs you to upload the documents rather than sending them physically to the lender. You can send your application form also through the lender’s website or personal loan app.

The documents that are typically required to apply for an instant personal loan include address proof, identity proof, age proof, and proof of income. You may also be required to send your selfie. 

On the other hand, personal loans require paperwork involving lengthy documentation. 

5. Quick loan disbursal

Both personal loans and instant personal loans are unsecured credit facilities offered by banks and NBFCs. Instant loans are also made available by DSAs, direct selling agents who work as referral agents for a bank or an NBFC. You can satisfy your financing needs by loaning money from any of these. 

However, there is a major difference in the disbursal time taken by instant personal loan providers and personal loan providers. When instant loans take minutes, a personal loan disbursal may take up to 4 to 5 days. So, instant loans are best to use for an urgent requirement where you can’t wait for the cash to get disbursed. 

6. Access to all the information

In the times of the internet that we live in, it is common to Google any of your small or big queries to get the information you want. So, when searching for the best instant personal loan, you can find all the required information right over the internet. 

You can get all the basic information about your lender and its products on its online portals. The information includes interest rates, loan eligibility, charges involved, documents required, etc. This information makes it easier for you to choose the products and services that you want. 

Instant personal loans are available online, so it is natural to get access to all the required information on the internet.  

7. Online support

Not only can you apply for an instant personal loan online at any time, but you also get online support for any query you have while applying for the loan. Be it midnight or a bank holiday; you can avail of the instant personal loan facility at any time. The same applies to its customer care support. 

However, with a conventional personal loan, you may apply for it online, but getting a 24*7 customer support facility is tough. 


Just a few years back, availing a personal loan from the banking system was a lengthy process. It involved much stress and took much of customers’ time. The new era of technology has changed it all. It has revolutionized the banking system, and instant personal loans are its best example. So, go ahead and take an instant personal loan whenever a need arises.