Never used an instant personal loan app? Here are 5 features to look out for!

Never used an instant personal loan app? Here are 5 features to look out for!

Not many borrowers have never heard of or used instant personal loan apps in India. This is because of many reasons, the first being that such applications are still in their nascent stages and have been operational only for a year or so until now. The other reason is that many borrowers are hesitant to switch over from traditional channels or web-based processes & put their trust in such applications.

Either way, trying one of these apps for the first time can be a much-wanted breath of fresh and can also be slightly overwhelming too, but in a good way. But to ensure you know what to expect and to help find the right applications,

This article will highlight 5 things you should look out for with from such platforms.

1. Much smaller loan brackets.

One has to understand that an instant personal loan app has its own space. It isn’t a traditional personal loan because it provides much smaller amount of financing. Even the best apps will stay within the Rs. 3,000 to Rs. 2 lakh bracket as far as loan amounts are concerned. This is because they aren’t competing with big-ticket loans per se; they are just offering a viable option for small & medium financial gaps that don’t warrant taking a personal loan.

Personal Loan by Eary Salary

2. Monthly interest rates.

Since the loan amounts are much smaller, so are the tenures. Most lenders offer a maximum of 12 months to repay the loan. This makes it impractical to charge a yearly interest rate. That’s why most apps will have a monthly rate that should be within the 1.25% to 2.50% range. This makes such loans very affordable as well.

3. The eligibility bar should be much lower.

Some personal loans are extremely difficult to apply for. You will need a hefty monthly salary and very impressive credit ratings to get one. This is half the reason why many borrowers end-up with rejected applications. However, with these new age borrowing apps, you can get a small personal loan instantly without worrying about monthly incomes & credit ratings. This is because even the most stringent apps should offer loans to those with a minimum salary of Rs. 18,000 and without a credit score.

4. Much faster processes.

Instant approvals & transfers in minutes are two things you can expect with instant personal loan apps in India. All borrowers can expect this if their application information is correct, their documents checkout and their processing fee is paid successfully. Repeat users can enjoy even quicker times, with approvals & transfers happening almost instantaneously.

Instant Personal Loan App - Early Salary

5. Convenience at every step.

Most instant personal apps will provide convenience at every step. Some apps will have only 4 steps in the first place.  Just fill out the application, submit document & pay the processing fees – you’re done. Documents required will be no more than 4 and one self-portrait, a.k.a, selfie.

You can also expect zero prepayment fees, completely app-based process and user-friendly applications. All of which makes instant personal loans amazing & must use for the small & medium financial gaps that pop-up every now and then.

Hope this has been helpful, good luck and all the best!