Loans have always been a handy instrument for raising funds at times of a financial crunch. A personal loan is one such offering from banks as well as NBFCs which is a non-secured, short term funding.
Why Avail A Personal Loan?
Out of the many loans available, a personal loan in India is a funding mechanism of the choice of many borrowers. It is because of some very distinctive features of this loan. These are:
- It is an unsecured loan, meaning that you need not pledge any collateral or security to the lender.
- Relaxed eligibility criteria and less documentation make this loan very popular.
- You can use the funds from a personal loan for any purpose.
- It is almost an instant loan with quick approval and on the spot fund disbursement of the loan amount.
The Traditional Indian Lending Scenario
Availing a loan from any lender has its procedure to follow. For most of the loan types, the borrower has to visit the lender multiple times, has to present many documents, testimonials and in some cases, security. Your loan gets an approval after a long tiresome wait.
The technological advancements in the digital era have revolutionized the financial sector. Digital or online lending is the current buzz which has changed the landscape of funding and borrowings, especially, of the personal loans.
The lenders who use technology to take funding decisions and perform all the process and procedure of availing a loan through an online platform are the Fintech lenders. These are the new-age lenders who have come up with a plethora of offers and facilities for the borrowers to make the process of lending easy and effective.
Changing the landscape of personal loan in India
Introduction of online personal loan application and approval has made a remarkable change in the landscape of personal loans in India. It brings many advantages to the borrower and makes personal loan one of the most preferred modes of funding. Here are some of these features of fintech lending:
- Easy Accessibility
Most of the online lenders have their mobile apps or websites for the smooth and effortless application and approval of the personal loan. It makes the loans more accessible and loan application process more convenient.
- Catering to a large population at a time
When you want to avail a personal loan from a traditional lender like banks, your credit score, income, and employment type are criteria for loan approval. On the other hand, online lenders make it possible for a large part of the population with less credit score, low-income borrowers and even to self-employed.
- Quick disbursal
Fintech lenders ensure to approve and disburse the loan amount in a matter of few minutes. This feature is handy in case of emergencies. The lender deposits the loan amount directly to your bank savings account within minutes of its approval.
- Anytime anywhere access
Another attractive feature of an online personal loan application is its accessibility from anywhere at any convenient time. You only need to have your mobile or a computer with internet connectivity. This type of use is open 24×7.
- A lower credit score is not a hindrance
Online lenders take into account many factors to access the creditworthiness of the borrower and hence, the credit score issued by any agency is not very significant. You can avail online personal loan even with a lower credit score if the other eligibility criteria of the borrower are fulfilled.
- Tailor-made loan proposal
Fintech loan proposals are tailor-made, based on the credit assessment of the borrower. It also offers comparative interest rate and tenure depending upon the need and eligibility of the borrower. You can select a pocket-friendly EMI and the loan repayment time that will not be a burden on your repayment ability.
- Selection of the best
You can easily compare the offerings of various lenders simultaneously on an online platform and can select the one that best suits you. The lenders give facilities like data analysis, to help borrowers make the right decision.
Fintech lenders are instrumental in bringing about a radical change in the way you avail a personal loan in India. Online personal loan application and approval are simple and effective.