The need for money never really disappears. Sometimes the needs go beyond what we earn or can afford. That is the time when most of us seek a personal loan. The concept of PL or personal loans has been around for ages.
Before the conventional banking system evolved, people took loans from friends, families, neighbors, village and town money lenders, and more. But, with banks and financial institutions offering personal loans readily and easily, there was a more formal way of acquiring loans and repaying the same.
What makes personal loans such an attractive option?
- The loan processing procedure is quite formalized, covering the entire process end-to-end.
- The process is hassle-free without any blockages and loopholes. There is hardly any chance of the terms being renegotiated or the banks straying away from the agreed terms.
- You can apply for personal loans directly online from the official banking website of the brand.
- Today, most banks offer pre-approved personal loan facilities that customers can access for instant loans.
- Most loans are disbursed within days of receiving applications, subject to the concerned authorities’ approval.
- It is the safest bet when one runs out of money or has an emergency requirement, instead of taking loans from the black market or small-time moneylenders at higher interest rates, often with choking repayment terms.
- Banks do not want collateral as a mortgage as this is a personal loan. Remember, if you take a loan from a private moneylender, you would often need to mortgage your home papers, car papers, or other valuables and assets.
Enter apps for personal loans
Conventional loans from banking and financial institutions were going well when the personal loan apps entered the scene. How did things change with the appearance of these high-tech apps? What makes these new-age apps a better option than the conventional personal loan system?
- Minimal Documentation- This is the key difference between PLs offered by traditional banks and what apps can do. With the help of the application on your handheld device, you can apply for a personal loan with almost no paperwork.
- Instant Approval- With the help of advanced technology, apps process and approve the loan within minutes. It is not that the loan is given to just about anybody without verifying the credit scores and more. It is all achieved within seconds with the help of cutting-edge algorithms and mathematical computations at the backend.
- Credibility- A credible loan is granted, with different apps offering different values. You need to look for the right personal app to get your expected value.
Choosing the right loan apps
So, the entire gamut of personal loans has been elevated to the next level with personal loan apps. From offering instant personal loans online to offering loan amounts of different values, there are plenty of bundled benefits in loan apps. But, how to find the right one for you? Here are some parameters to look for:
- The app should be able to offer instant credit and loan facilities.
- Consider the customer service – they should be there 24×7 to assist you with your queries.
- The entire process should be digital, including documentation, approval, and disbursement.
- Consider apps that have reasonable interest rates and not too strict repayment policies.
- The EMIs should match with your ability to pay back without taxing you much, month after month.
- Auto-debit feature is offered by many such apps, which is a great way to never miss paying back the EMI on time and within the due date.
- Notifications, alerts, and reminders about an upcoming payment are added features that you should look out for.
- Consider the duration of the time it takes to get the loan approved. There is enough data online for you to compare apps and find the right one.
- Look at the ratings on the Play Store and Apps Store to get a feel of which app is preferred by like-minded people looking for personal loans.
- Ensure that the app does not ask for collateral to grant the loan.
- Some apps offer personal loans even to people with zero credit history. If you fall in this bracket, make sure to research the app to match your preference diligently.