What you should know when you apply for instant personal loans with Fintech lenders

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Benjamin Franklin once wrote, “in this world nothing can be said to be certain, except death and taxes”. The credit cycle can be added to that list in the present world scenario. The inflation and the unstable economic conditions have made credit a necessity in making businesses and ultimately the world go around. In the eyes if the customer, a particular credit product has taken center-stage – the instant personal loan.

What are instant personal loans?

An Instant personal loan is a type of unsecured loan that can be availed to meet fiscal deficits. Salaried and self-employed individuals can avail this loan which has flexible a repayment tenure and an economical rate of interest. Banks and Non-banking Financial Institutions usually give out these types of loans, however, in recent times Fintechs too have registered a strong presence.

Who are Fintech lenders?

Fintech lenders are financial institutions that make use of technology to provide improved financial services. In the recent past, Fintechs have now spread their wings towards the realm of personal loans, offering instant personal loans to salaried and self-employed individuals. They make use of the advanced risk calculating algorithms to determine the creditworthiness of individuals without completely depending on the credit scores issued by credit agencies. This has enabled them to give out instant personal loans to those who under traditional ways were not considered eligible.

Arranging for a traditional bank loan can be a strenuous and time-consuming process. In the modern world, both these criteria cannot be easily met hence leaving a large chunk of population without any scope to bridge the financial gap.

Why opt for Fintech lenders for an instant personal loan?

  • Digital experience

Technology is the keyword here and Fintechs have optimally used it to make their instant personal loans quick and hassle free. There is no requirement to visit a brank branch, fill out hundreds of forms or provide an extensive list of documents. The overall approach is minimalistic but effective in terms of risk and credit assessments.

  • Quick turnaround time

One of the benefits of being totally digitized is the fact that the lending decisions can be taken instantly. When compared to traditional banking practices, which takes time – close to a week or more in analyzing the credit risks and the eligibility of a borrower. Fintech have the upper hand as lending decision are taken in a matter of hours and loan dispatched within a day or two

  • Minimal documentation

The documents can be submitted online for example you can use the net baking credentials to instantly send bank statements or salary slips. This ensures privacy and security. Some few physical documents are needed like Aadhar card and PAN card which are usually picked by an executive employed by the fintech. So, you do not need to step out of your home for a loan.

  • Lenient criteria

Banks usually have very stringent criteria for instant personal loan, which leads to rejection of applications. Fintechs on the other hand are quite lenient, they require minimum documents, the credit score is not to high. They give prominence to a customer’s social and economic leaning rather than numbers.

  • Slightly higher interest rate

For the number of benefits that a personal loan from Fintechs offer, the slightly high interest rate s justified. These instant personal loans fall in the high-risk category and are not secured by any asset. This kind of validates the higher interest rate when compared to secured loans.

Overall, taking the advantages and disadvantages into consideration, an instant personal loan from a Fintech like Qbera is one of the best feasible ways to manage fiscal deficits. With an interest rate of 11.99%, it is quite affordable too.