With the changing Indian mindsets, borrowing a loan no longer signifies a financial crunch. Indian millennials do not consider borrowing a taboo any more. They borrow Personal Loans to meet their urgent requirements or fulfil their desires. These include taking loans for renovating their homes, going on a vacation, paying medical bills, enrolling in a study abroad programme, covering wedding costs, consolidating debt, etc.
Nowadays, many lending institutions have launched their digital loan app to fulfil the growing demand for Personal Loans.
Let’s explore how a loan app brings a loan application to your fingertips.
What is a Loan App?
A loan app is a mobile application that lets you apply for a loan instantly using your smartphone without visiting the lender’s branch office. It lets you complete the entire loan procedure online, including application, documentation, calculations, approval, disbursal, and repayment.
Loans apps have become quite popular among tech-savvy, younger borrowers who expect flexibility and convenience while seeking a loan for buying consumer durables like smartphones. As a result, digital loan apps have witnessed exponential growth over the last few years.
How Does a Loan App Work?
A loan app is user-friendly and accessible to aspiring borrowers from anywhere on their smartphones. It allows anyone to apply for a Personal Loan by filling out an application form online, providing a few necessary details, and uploading the required documents.
The finance company that operates the app verifies the entered information and determines your creditworthiness to offer you a loan with reasonable interest rates. If you accept the loan offer, you get disbursal directly into your bank account.
Some benefits of using Personal Loan apps include flexible repayment tenures, competitive interest rates, 24/7 availability, and 100% digital applications. Loan apps make the application process paperless, trouble-free and quick, providing instant funds during financial emergencies.
Benefits of Applying Through a Loan App
Following are a few benefits of applying for a consumer durable loan through an instant app:
- Fast Processing: Traditional loan processing methods take several days to complete. Even after that, you may get a loan rejection, wasting your significant effort and time. However, applying through loan apps has drastically changed the way lending works. Today, the loan company can approve a loan instantly and disburse the required amount quickly into the borrower’s account.
- Hassle-Free Application: Many reputable lending institutions offer instant loans through hassle-free and time-efficient application procedures through loan apps. You just need to download the app on your smartphone, register, provide the necessary details and documents, and get instant approval. You will receive a notification after the lender processes your loan request.
- Enhanced Flexibility: These days, lending institutions provide enhanced flexibility in deciding on an adequate loan amount, EMI plan, and repayment tenure. You may apply for a loan amount according to your requirement and choose a repayment term with EMIs suitable to your monthly budget. A Personal Loan EMI calculator available on the app can help you select a loan tenure and EMI according to your repayment capacity.
- Zero Paperwork: Loan application through a loan app saves you from physical paperwork and branch visits. You can upload scanned copies of the required documents through the app to obtain the desired loan.
- 24/7 Accessibility: Round-the-clock accessibility is one of the most important benefits of a digital loan app. You can download the app on your smartphone and apply for a consumer durable loan anytime online. That means you can get the money you want anytime with an instant app.
- No End-Use Restrictions: Another benefit of an app is that you can use the received loan amount for any purpose, be it a medical emergency, buying a consumer durable, home renovation, vacation, wedding, education, etc. You don’t need to specify the reason for borrowing while applying for a loan through an online app.
- Convenience: Lending institutions no longer ask you to visit their branch office and wait days for approval. With an easy-to-use and simple app, you can conveniently apply for a loan while sitting at your home. Simply download the app, register, and apply. The whole process does not take more than a few minutes to complete.
- Direct Disbursal to Your Bank Account: Sometimes, disbursal takes time due to additional complications and formalities, even after approval. However, loan apps transfer the money directly to your savings account.
- Suitable for Small-Ticket Loans: Lenders can provide unsecured Personal Loans of up to Rs 5 lakh based on your requirement and eligibility. So, you can even use a loan app even for small-ticket loans.
Things to Consider When Using a Loan App
It would be best if you kept these things in mind when using an online loan app:
- Online loan apps offer attractive interest rates. However, compare them with different lenders to get the best deal.
- Maintain a high credit score to get the best deal on a consumer durable loan.
- Check the prepayment charges, processing fees, and other charges as they contribute to the total loan cost.
- Use an EMI calculator to select a loan tenure with affordable monthly instalments.
- You must share confidential personal and financial information while applying for a loan through an app. Thus, it poses security risks. Therefore, choose an instant app with sufficient encryption and security methods for optimum protection.
- Your income, credit history, debt-to-income (DTI) ratio and other eligibility parameters may limit your borrowing amount. Evaluate your funding needs to apply for an adequate loan amount through an instant app.
- Although loan apps give quick access to the necessary funds, the loan approval time may vary for each applicant. So, double-check the information and documents to accelerate the loan process and get quick approval.
An online loan app is an excellent tool to ensure quick and convenient access to money. Thanks to their fast approval, digital application and user-friendly loan procedure, they are incredibly beneficial for salaried and self-employed applicants. Over the years, digital loan apps have become the first choice of borrowers seeking instant funds for various expenses.