Availing of personal loans when in need of quick funds has become increasingly popular in India. While you can explore many options to source funds, applying for a personal loan on an instant personal loan app has its share of unique advantages such as faster disbursal of funds, low interest rates, ease of use and more. Consider these factors while choosing the best personal loan app for your needs:
- Always look for a loan without collateral. By its very nature, a personal loan is an unsecured loan, which means you do not need to keep any kind of security with the lender. This makes the entire lending process far simpler and way faster. But, it also increases the number of people who can benefit from it, increasing the number of loan applicants at any given time.
- Look for a loan with the lowest possible interest rate. The annual interest is how the lender actually makes money. Now, being an unsecured loan means that the lender will charge a slightly higher interest rate. But, even then, you can find a lender whose interest rates are lower than their competitors.
- Ensure that the lender is committed to user safety. When you take a loan from a lender, you have to provide a lot of your personal data. Therefore, it is strongly recommended that when you consider various best instant personal loan apps, make sure that it comes from a credible and reliable source such as Google Play Store. More importantly, it should be backed by a legal, reliable financial services company that has a track record of good services and well-established practices for customer data protection.
- When looking for an online loan app, it is very important to choose the one that provides paperless documentation and seamless processes. One of the biggest advantages of opting for an instant personal loan app is that you can skip the long paper trail of application forms, and identity and income proofs that have to be submitted and verified. In such cases, I strongly advise you to choose an app that runs all these processes digitally. With online UIDAI-based authentication, paperless processes are the new normal.
- Look for an app that processes and approves loan applications instantly. Most traditional lenders take days and weeks to process a loan application. Verification processes include multiple checks in the documentation procedure, there will be visits to your home or workplace, and you will end up with much more hassle than you would have ever expected or wanted. Therefore, if you are looking for an online loan app, you should choose the one that provides instant application processing. There is no need for you to be stuck in limbo while your application navigates a bureaucratic maze.
- Use the app-based loan calculator to judge how much money you want and predict how much amount you can comfortably pay as an EMI. Cases of people over-borrowing or under-borrowing are common. Similarly, if the correct period of repayment is not checked beforehand, you can end up paying a high EMI amount or unwillingly stretching the loan tenure beyond your comfort. An app-based calculator will help you avoid such problems.
- Make sure that the actual disbursal of the loan is very quick. Many traditional lenders tend to follow slow, age-old processes for loan disbursal. They will send you a draft of your loan amount in the mail which can take days to get ready, some more days to reach you and then a few more days till you submit the draft, it gets encashed and then money comes to your account. However, instant loan apps can help you get funds quickly.
- The app must allow you to choose your repayment period. Traditional lenders are rather regimented in their repayment scheduling so they tend to have fixed repayment schedules associated with the amount borrowed. However, with an instant loan app, you have the option to choose a lender that allows you flexibility in the repayment period selection. So if you have the wherewithal, you can even repay the loan at a faster pace than expected.
With time, these app-based loans are going to become the more prevalent lending mode so it is best for all to start early with them.