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Fintech is among the fastest-growing segments in India. Personal loan apps have become increasingly popular in the last few years in India. Best loan apps offer quick access to personal loans online through a simple process, eliminating the hassle of long queues, heaps of documents, lengthy application processes, etc. The digital lending market is projected to reach $1.3 trillion by 2030 – fourfold increase from the current value of $270 billion and Fintech startups and NBFCs (non-banking financial companies) accounts for a bigger percentage of this growth.
How Personal Loan Apps Work for Quick Approval
Personal loan apps focus on speed and convenience. Using a personal loan app, borrowers can apply for a personal loan anytime from any location.
- Quick loan apps allow you to check if you are eligible for the desired loan amount.
- Since all the steps involved in personal loan approval can be completed online, loan apps involve minimal documentation.
- You can get all the details about the loan. Know the principal amount, interest cost, EMI (Equated Monthly Instalment) amount, loan tenure, outstanding loan amount and EMIs, prepayment facility, prepayment charges or other details in no time.
- Also, users can track their loan status in real-time. It increases the transparency in the lending process of the institution.
- These apps allow borrowers to automate the EMIs by linking with a savings account. Ultimately, it saves you from penalties on delayed EMIs.
Steps for Hassle-free Borrowing Using the App
Common steps involved in securing a personal loan using a loan app are as follows:
- Application: First, the user needs to download the best loan app and sign up to initiate the application process. The application process involves providing personal, employment, and financial details. You need to select the required loan amount and loan tenure as per your requirement and cash flow. Selecting a shorter-term tenure can save on the overall loan cost.
- Documentation: KYC (Know your customer) compliant individuals can proceed with the process. Complete the documentation with the scanned copies of the required documents – PAN (Permanent Account Number) Card, Aadhaar, Latest bank account statements and salary receipts of the previous three months for income proof, Identity proof, and Address proof. Ensure that all provided proofs are valid.
- Verification: The lender will verify your entered information and uploaded documents. Typically, they access credit reports and employment records. Some lenders may ask for additional documents also, like tax returns.
- Approval: If the lender is satisfied with all the information and documents appropriate as per their loan eligibility, it can approve your loan application. Since all steps are completed in real-time, loan approval can be acknowledged quickly.
- Disbursal: Once the loan is approved, the lender will transfer the sanctioned loan amount to the registered savings account directly. The loan amount can be disbursed with 24-48 hours of approval, depending on the lender.
- Repayment: The borrower must repay the loan with the selected tenure. Individuals can repay the loan conveniently using the loan app. Link it to the savings amount from which you want to deduct EMIs and enable the auto debit facility. The loan term, including the interest rate and repayment period, are outlined in the loan agreement.
This way, customers can apply for a personal loan online conveniently using the best loan app of renowned lending institutions.
Choose the Best Loan App
To choose the best loan app, consider the following attributes:
- Look for an instant personal loan app offering a loan amount of as high as Rs.25 lakhs, depending on your eligibility.
- The loan repayment tenure should be flexible. It allows individuals to choose a tenure as per their financial standing and expected cash flow. Reputed lenders allow individuals to choose from a flexible loan tenure of 12-60 months. Use a loan EMI calculator and know how much your monthly obligation will be towards the loan.
- The user interface of the personal app should be simple making the borrowing process hassle-free.
Thus, personal loan apps are designed to provide quick access to urgent funds following a 100% paperless process. Review the loan terms, fee and interest rate before accepting the loan offer on loan apps. Consider using the best loan apps of trusted lending institutions off