Mon. Jun 17th, 2024

As consumers, Indian mindsets have changed, and they no longer perceive borrowing as a sign of financial crunch. Now, people freely borrow loans to cover their planned or urgent expenses like weddings, education, holidays, home renovation projects, medical bills, etc. Considering the increasing demand for Personal Loans, many NBFCs strive to streamline their Personal Loan online application process to provide easier access to credit.

A few years ago, only a handful of lending institutions supported digital lending services. However, things have changed rapidly as more financial institutions launched online loan apps to manage lending procedures. It resulted in faster access to credit than Indians had before. Here’s how online loan facilities streamline your loan journey.

More Credit Options for Consumers

Online loan applications have made more credit options available at your fingertips. Earlier, people relied on banks whenever they needed money. Now, you can turn to online loan applications on the Play Store to find a loan app that best suits your loan requirement. You can browse these apps on your smartphone and download one with suitable loan plans. Moreover, most providers do not ask about the reason for borrowing money. These loans come without end-use restrictions, making them the best funding option during emergencies or for financing luxuries.

Convenient

Navigating the traditional lending environment is challenging for most, especially if you are a first-time borrower. As such, you can turn to an online loan app that makes it easier to borrow money and manage your finances. Furthermore, personal loan online apply through an app does not require technical excellence. Simply download the app on your smartphone, provide some basic information, upload scanned copies of the necessary documents, and apply. You will receive the loan approval automatically at your email address. Review and accept the loan offer to get disbursal within a few hours.

Cost-Effective

Digital lending apps provide cost-effective credit options to borrowers. While looking for collateral-free Personal Loans, you can compare the loan plans at different loan apps and opt for one providing the lowest interest rates. However, the interest rate is not the only parameter to finalise a loan offer. Look for other factors, including the repayment terms, loan amounts, customer service, eligibility conditions, documentation requirements, additional charges, etc. Quick comparison through loan apps lets you choose the most cost-effective plan with a minimal loan cost. It also saves the expense of visiting the lender’s branch office several times.

Credit Access to Low-Score Individuals

When you apply for a loan through a traditional bank or lending platform, your credit score is the first thing they are most concerned about. They will likely turn down your loan application if you do not fulfil their minimum credit score requirement. Getting a loan becomes almost impossible for someone with a low credit score. However, owing to the increasing competition between online loan apps, many lending platforms provide collateral free Personal Loans to people with low credit scores. While they still prefer borrowers with solid credit ratings, you can get credit after providing a stable job and a regular income stream.

Additional Services

With emerging technologies in the fintech industry, many loan apps from reputable organisations offer additional services to make the loan journey easier for their consumers. The most common example is a Personal Loan EMI calculator that lets you calculate EMIs online by entering your loan amount, interest rate, and repayment terms. Based on the results, you can determine your loan amount and loan term with budget-friendly EMIs. Before introducing these services, borrowers relied on agents and lender representatives to help them choose the best loan plan. But with additional services in today’s loan apps, borrowers can make better financial decisions without affecting their credit scores.

Free Credit Score Checking Tools

Lending institutions rely on your credit score to evaluate your application. The higher the credit score, the better offers you can get. If you have a high credit score, loan providers will try to retain you by offering a low-interest rate or a better loan plan. In case of a low score, find out where you are struggling and take appropriate actions to improve it. Improving the credit score before an online personal loan application is advisable to get the best loan deal.

Complete Security

Technologically-advanced loan apps do their best to keep your information confidential and finances secure. The level of security has risen significantly over the last few years. Firstly, you have the loan app on your smartphone locked with a password, making it challenging for anyone to access it without your permission. Moreover, most apps have two-factor authentication, which means no one can transact using the app without entering a code you receive on your mobile number or email address.

Several other security and encryption methods make it completely safe to apply for a loan online. With advanced security features, hackers cannot access your account even if they find your online banking details. That is because they will also need to break into your phone, then your online account, and finally, the password-protected app.

Customer Service

Many times, especially if you are a first-time borrower, you will need expert help to apply for a Personal Loan. You may also need support to determine the loan cost, how much you would need to pay each month, the appropriate loan tenure to select, how you will pay the EMIs, whether you can prepay the loan, etc. Most loan apps have customer service numbers where you can call and clear your doubts. The customer representatives are trained to assist you in every possible way and make you feel safe and confident.

Undoubtedly, loan apps are saviours in emergencies due to their minimal documentation and fast approval procedures. You can use them to escape a crisis within a few minutes without visiting the lender’s branch office and dealing with several people.

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