Personal Loan App – A Relaxed and Convenient Method to get Loan

ByLily A Singh

The Digital revolution has transformed our lives like never before. Not only one can apply for various services from the convenience of our homes, but the process is super quick. Instant loan apps are one such new-age fintech companies that offer loans to eligible applicants using mobiles apps.

 

What is Personal Loan Apps?

Digital platforms that offer instant loans online for different personal needs like shopping, traveling, medical expenses, and more are called personal loan apps. In comparison to traditional banking, the instant loan apps offer several benefits to the applicants including:

  • Minimal paperwork as the entire process is digital
  • Quick loan disbursal due to complete digital process and verification
  • Less processing fees as agents are not required to fill the form
  • No requirement of physical verification of documents
  • The app can be downloaded on mobile for free
  • No hidden charges levied on customers
  • People with low credit score stand a chance to loan approval
  • Competitive interest rates
  • Collateral free loan sanctioned to eligible candidates
  • To avoid default, regular alerts to borrowers
  • To apply and manage the loans is easy with just a mobile.
  • The new-age apps use AI and new age algorithm to determine the creditworthiness

 

Instant loan apps are getting popular among borrowers because of the relaxed eligibility process, flexible loan tenure, and no need for physical verification. As the entire process is digital, the operating cost of running a digital business is lower, which is passed on to the borrower in the form of lower processing fees and so

 

How to determine the EMI for repaying a loan?

Equated monthly instalment (EMI) can be derived by an applicant using an EMI calculator. Things required to derive EMI are:

  • Loan amount applied and sanctioned
  • Repayment tenure
  • Interest rate charged

A borrower can select the EMI that is affordable and can be paid without default.

 

What Factors to Consider Before Getting an Instant Loan?

There are certain things that an applicant should be aware of before applying for a loan, these are:

  • Other charges

In addition to the interest rates to be paid by a borrower along with the principal amount, some other charges levied by lenders include-

  • Processing fees(one-time payment)
  • Late fees
  • Foreclosure penalty

 

  • Never over-stretch your budget

Never take the loan without considering the actual requirement. Financial irresponsibility may lead to a debt trap, hence fiscal prudence is needed.

 

  • Assess your repayment capacity 

Make an accurate evaluation of your repayment ability to ensure that your EMIs are paid on time. Any default can damage the credit score creating trouble in the future.

  • Do thorough research

Different fintech companies are offering instant loans online to borrowers at competitive rates, however, the borrowers should do proper research before selecting the lender. Make a list and apply from the most suitable lender.

 

Summary

Life’s cash crunch problems aren’t new, and borrowing money from friends or family isn’t an option. In such tough times, personal loan apps that offer online personal loans can be a lifesaver. You get the payments right away and can pay them off in monthly instalments without having to tap into your savings. What’s more, the whole procedure is hassle-free