Across the globe, the financial technology industry has developed at a rapid pace over the last decade. This impact has been seen in India as well, with major companies investing their time and money in developing products and services suitable to this sector. *According to a recent statistical survey from The Times of India, it was seen that the outstanding portfolio of personal loans has grown about 48% in one fiscal year, from INR 26700 in March 2019 to INR 39700 in March 2020.
What are online personal loans?
In a nutshell, these are small ticket-size loans, which are available at a steep interest rate and can be readily transferred to your bank account. It is usually in the form of credit with a shorter repayment period. Many microfinance companies are engaged in this activity to readily finance people for all kinds of needs. All of these companies either have a mobile application or a web portal through which you can try to access the funds or apply for a loan with ease.
The shift in paradigm
The advent of online personal loans has encouraged people to apply for shorter cash credits as much as possible. Before the inception of the internet, smartphones, and technology, applying for a smaller loan from any reputed bank was a cumbersome process. But this process has since changed, making it easier to apply for loans online. Here’s a look at some of the advantages of applying for online personal loans:
- Eligibility Criteria are Liberal: Most online personal loan companies have fairly simple eligibility criteria. This facilitates smaller loan amounts for a large group of people. However, you need to have a very strong credit score to apply for this type of loan.
- Minimal Paperwork to Paperless Transactions: Most of these companies offer easy documentation with the help of mobile and electronic uploads. This means you do not have to visit any bank or office physically and still get your loan amount processed in a jiffy.
- You Do Not Need Financial Collateral: If you are a student looking for a quick small loan or a working professional who needs to pay for utilities before the next paycheck, you can try these loans since the credit period is shorter. Also, you do not need to put any assets as your collateral to get the loan.
- The Processing of Documents Is Faster: The documents and the loan application get processed in minutes and you can have a loan within 24 hours of application if your credit score is great. The process begins with the fulfilment of eligibility criteria and ends with the loan amount available for disbursal.
- The Loan Amount can be Disbursed Quickly: You just have to feed in your banking details along with the IFSC, account number, etc. and the entire amount will get credited. In many cases, you can directly use the portal to make your payments online or use the credit to buy different things from the portal.
- There are No Hidden Charges: If you are looking to apply for an online personal loan, please make sure that you have read and understood the terms and conditions, repayment period, rate of interest, and minimum repayable amount per month. Since all these are vividly mentioned on the website and mobile application, it will be easier for you to assess the portals before applying for a loan.
The Bottom Line
We have been spoilt by the number of choices we have when it comes to online personal loans. And, if you are looking for a quick cash inflow, have a look at some of the online personal loan portals and read the documents carefully before applying.
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