A Personal Loan app or a fintech platform helps you meet several short-term financial needs. By applying for a loan from these platforms, you can avoid the typical hassles of long-drawn paperwork. Also, the amount is disbursed instantly, so you can immediately cover your unplanned, big-ticket expenses. In this blog, you can learn about the other beneficial aspects of Personal Loan apps. Read on!
What is a Personal Loan?
A Personal Loan is an unsecured loan for personal financial needs. It offers flexibility in usage: debt consolidation, weddings, medical bills, or home improvements. Repayment is in fixed monthly instalments over a loan term. Interest rates can be fixed or variable.
Importance of Personal Loan apps
Here are some noteworthy features of a Personal Loan app, contributing to its importance:
- Quick Disbursal and Minimal Documentation
In a loan app, you can instantly avail of funds with minimum documentation. Therefore, you can expect to get your financial problems resolved without visiting the nearest bank and standing in long queues.
- Transparent Lending
A certified Personal Loan app is readily accessible with its simple user interface. Also, there is no restriction on the end-use of the funds, offering you to cover any expense of your choice.
- Minimal Intervention
You can instantly check your loan eligibility criteria with just a few clicks on the Personal Loan app. Also, you can find inbuilt calculators to determine the EMIs and total payable interest. Therefore, these apps minimise all sorts of physical interactions.
Also Read: Why is a Personal Loan One of the Best Short-Term Loans?
Why Do Personal Loan Apps Matter?
Here are the top 5 reasons that heavily justify the relevance of a convenient Personal Loan app:
1. Easy Application Process
Personal Loan apps typically have a streamlined and user-friendly application process. Borrowers can apply for a loan directly from their mobile devices, saving time and effort compared to traditional loan applications.
2. Reduced Processing Periods
Personal Loan apps often provide speedy approval and disbursal of funds. Many apps use advanced algorithms and technology to assess borrower eligibility and transfer funds directly to their bank accounts quickly.
3. Minimal Documentation
Unlike traditional loan applications, Personal Loan apps usually require minimal documentation. Borrowers can upload necessary documents through the app itself, eliminating the need for physical paperwork.
4. Lower Interest Compared to Credit Cards
Credit cards come with higher interest rates as well as high maintenance charges. Therefore, most millennials and even the new generation resort to taking a Personal Loan through these applications.
5. Gives a Chance to Build Creditworthiness
If you want to build a positive credit history, then using a Personal Loan app and availing of smaller loans will help you. Many Personal Loan apps help you set EMI payment reminders, he lping you repay the credit on time.
However, it's important for borrowers to carefully evaluate the terms and conditions, interest rates, and fees associated with Personal Loan apps to make informed decisions and ensure responsible borrowing practices.
5 Benefits of Personal Loan Apps
If you are willing to start with a Personal Loan app to explore its various features, these are some possible benefits you should consider:
- Real-Time Loan Tracking
Many Personal Loan apps offer features that allow borrowers to track the status of their loan applications in real-time. This transparency helps borrowers stay informed about the progress of their loans.
- Secure Transactions
Personal Loan apps prioritise the security of borrowers' personal and financial information. They employ robust encryption techniques to ensure that sensitive data remains protected throughout the loan application process.
- Flexibility in Loan Amount
Personal Loan apps offer borrowers the flexibility to choose their desired loan amount based on their needs. They can select a principal within the available range offered by the app, making it convenient for borrowers to borrow as per their requirements.
- Accessibility and Convenience
With Personal Loan apps, you can apply for a loan anytime, anywhere, as long as you have a smartphone and an internet connection. Their accessibility and convenience make it simpler to meet your urgent financial needs on the go.
- No Collateral Required
You do not have to pledge any property or assets to avail emergency funds. It makes a Personal Loan a convenient option for those who do not own numerous valuable assets against which they can apply for a loan.
How to Avail of the Personal Loan through the Mobile App?
Availing a Personal Loan through a mobile app is a straightforward process. Here are the general steps to follow:
- Step 1: Download and Install the App
Either visit the App Store or Google Play Store to search for your preferred Personal Loan app. Then, download and install it on your device.
- Step 2: Create an Account
Open the app and create an account by providing the required information, such as your name, contact details, and email address. Some apps may require additional verification steps, such as OTP (One-Time Password) verification.
- Step 3: Complete the Application
Fill in the necessary details in the loan application form within the app. This includes information about your personal and financial background, employment details, and the loan amount you require.
- Step 4: Upload Documents
The app will guide you through the process of uploading the required documents digitally. Typically, these documents include identity proof, address proof, income proof, and bank statements. Take clear photos or scans of the documents and upload them on the app.
- Step 5: Review and Submit
Once you have filled in all the necessary information and uploaded the required documents, review the application to ensure accuracy. If everything looks good, submit the application.
Once done, the lender reviews your application. If approved, you receive a credit offer with a well-defined loan agreement policy. Upon accepting the offer, the principal is disbursed to your bank account.
Also Read: Can You Get Cash from a Personal Loan: What You Should Know?
To Conclude
A Personal Loan app holds immense importance in simplifying the credit application process. However, it is important to note that the exact process may vary depending on the specific Personal Loan app and lender. Make sure to carefully read the instructions provided by the app and follow their guidelines for a smooth application experience.
Frequently Asked Questions
- Why are NBFCs a better choice for instant loans as compared to banks?
Renowned NBFCs have a dynamic digital presence; thus, customers feel more confident while traversing through end-to-end process flows. Also, they present lesser eligibility criteria, and many provide loans at attractive rates, making EMIs affordable.
- What happens if an EMI payment via the Personal Loan app is unsuccessful?
You will receive an in-app notification before a predetermined time. To find out this time you can check the lender’s terms and conditions. Upon receiving the alert, you must select another bank account or payment mode to complete the transaction.