Financial needs often arise unexpectedly. No matter it is a medical exigency, a dream vacation, or a home renovation plan, many of you need instant access to money. Fortunately, digital apps have changed the borrowing procedure, making it simpler, more accessible, and convenient to a wider range of audiences. In our country, where the usage of phones has witnessed a considerable rise, loan apps even have increasingly gained popularity for mitigating short-term financial needs and obligations.
Benefits of digital personal loans
Digital personal loans offer several advantages over traditional lending methods. They provide instant access to funds without extensive paperwork or lengthy approval processes. Such loans are versatile in nature and can be utilised for distinct purposes. Read on to know the purposes for which the loan proceeds can be used.
Education
Loan apps can help students in funding their studies expenses, covering their tuition costs, books, and various linked expenditures.
Medical expenses
In case of unexpected medical bills or emergencies, loan apps can provide quick funds for treatment and hospitalisation costs.
Home renovation
Whether it’s a minor repair or a major renovation project, a digital personal loan can help in sprucing up your living space.
Wedding expenses
Planning a wedding can be an expensive affair, but a loan app can ease the financial burden by providing funds for various wedding-related expenses.
Debt consolidation
If you have multiple debts with high-interest rates, consolidating them into a single loan through an app can help simplify repayment and potentially reduce interest costs.
Travel and vacation
Fulfil your wanderlust by using a loan app to finance your dream vacation and create lasting memories.
Vehicle purchase
No matter it is a 4-wheeler or 2-wheeler, loan apps provide the convenience of funding your vehicle buy with ease.
Emergencies
During unanticipated financial exigencies, loan apps can act as a life saviour, offering instant funding to cover considerable expenditures.
Purchase of consumer durables
Loan apps can be used to buy electronic appliances, furniture, or any other consumer durables without straining your finances.
Business needs
Entrepreneurs and small business owners can utilise loan apps to fund working capital requirements, purchase inventory, or expand their businesses.
Now, let’s delve into 20 essential factors to consider when choosing the right loan app –
User-friendly interface
Look for loan apps with a simple and intuitive interface that allows for easy navigation and hassle-free transactions. Example: CRED, known for its user-friendly design and seamless user experience.
Credibility
Opt for loan apps backed by reputable financial institutions or well-known fintech companies, as they are more likely to adhere to regulatory standards. Example: Paytm Money, a reliable app backed by the trusted brand Paytm.
Interest rates
Compare interest rates offered by different loan apps and choose the one with the most competitive rates to minimise the cost of borrowing. Example: MoneyTap, which offers flexible interest rates based on your creditworthiness.
Eligibility criteria
Check the eligibility requirements of the loan app to determine if you meet the necessary criteria for loan approval. Example: EarlySalary, which provides loans to salaried individuals even without a credit history.
Loan amount and tenure
Ensure that the loan app provides the desired loan amount and offers a flexible repayment tenure that suits your financial situation. Example: CASHe, which offers loans ranging from Rs. 10,000 to Rs. 2 lakhs with flexible repayment options.
Document verification
Opt for loan apps that offer quick document verification processes, minimising the need for extensive paperwork. Example: Dhani, which enables e-KYC verification for a seamless borrowing experience.
Customer support
Look for loan apps with robust customer support services to address any queries or concerns that may arise during the borrowing process. Example: IndiaLends, which provides prompt customer support through multiple channels.
Loan disbursal time
Choose loan apps that offer quick disbursal of funds, ensuring that you receive the required amount promptly. Example: KreditBee, which disburses loans within 15 minutes after approval.
Security measures
Prioritise loan apps that prioritise data security and employ encryption techniques to protect your personal and financial information. Example: Indiabulls Dhani, which ensures the highest level of data security for its users.
Additional charges
Consider the processing fees, late payment charges, and other associated costs before finalising a loan app to avoid any surprises. Example: FlexSalary, which has transparent and competitive fee structures.
Repayment options
Choose loan apps that offer flexible repayment options, such as EMIs or customised repayment plans, based on your financial capabilities. Example: Money View, which allows borrowers to choose from various repayment options.
Credit score improvement
Some loan apps provide credit-building features that help improve your credit score over time. Look for such apps if credit improvement is a priority. Example: SlicePay, which offers loans specifically designed to build credit for students and young professionals.
Reviews and ratings
Check user reviews and ratings of loan apps to gauge the experiences of previous borrowers and determine their reliability. Example: RupeeRedee, which has received positive reviews for its customer service and loan process.
Loan calculators
Loan apps with built-in calculators can help you assess your monthly repayments, enabling better financial planning. Example: MoneyTap, which offers a loan calculator to estimate EMIs and interest payable.
Loan app integration
Consider loan apps that integrate with other financial management apps or digital wallets for seamless transactions and better financial tracking. Example: CASHe, which integrates with Paytm for easy loan repayment.
Loan app reputation
Research the reputation of the loan app in terms of customer satisfaction, ethical practices, and prompt grievance redressal. Example: CRED, known for its transparent practices and positive customer feedback.
Pre-approved offers
Some loan apps provide pre-approved loan offers based on your credit profile. Consider such apps for a quicker loan approval process. Example: MoneyTap, which offers pre-approved loan limits to eligible applicants.
Loan app partnerships
Look for loan apps that have tie-ups with multiple lenders, as they offer a wider range of loan options and better chances of loan approval. For instance, PaySense, a partner with multiple NBFCs and banks can offer loan options for distinct profiles.
Transparent conditions
Thoroughly review the conditions of the loan application, ensuring that they are concise, fair, and clear with zero hidden charges or clauses. For instance, IndiaLends, maintain transparent conditions throughout its loan procedure.
Industrial experience
Go for loan applications with a thorough track record concerning the lending vertical as they most likely have a better understanding of the needs of the borrowers. For instance, MoneyView is an established loan application having a prudently strong Indian market presence.
Conclusion
Choosing the correct loan application is essential to make sure a smooth and hassle-free borrowing experience. By factoring in parameters like rate of interest, creditworthiness, user experience and loan proceeds, you can make a better decision. Note that, you must prioritise your life goals and go for the loan application that is in alignment with your needs. With accessibility and convenience provided by loan apps, you now can mitigate your instant financial requirements without any salary restrictions, making your goals and dreams a reality. Note that, there are a few digital loans app for without salary i.e., designed to provide loan proceeds without any income.