Smartphones have transformed the lives of billions of people around the world. They’ve made it easier than ever to access information, communicate with friends and family, and stay organized at all times. Fortunately, smartphones have also made it easier than ever to get a fast loan as well. Using your phone to qualify for financing is fast becoming the new norm in today’s financial world, especially in India with the ever-growing fintech space. That’s because instant loan apps in India are making banking and investing more accessible than ever before. Even if you don’t own a computer, you can still continue your financial journey by using an app on your phone instead – so long as you’re willing to learn how to access lending services from outside of a bank or other traditional financial institution. Here are some advantages you stand to gain by having a loan application on your smartphone as well:

You’re Already Considered a Good Credit Risk

Before you can even apply for a loan, lenders will want to ensure you can be trusted with their money. This means they usually run a basic credit check to make sure you’re eligible to receive financing. Because you’ve already thought of as a valued customer, this will usually be sufficient to open a loan account. What’s more, the time it takes to receive this information is far shorter than when you go through the process of applying in person. You’ll be able to get an answer on your loan request in around two days, compared to a week or two for most credit checks. As long as you’re able to provide solid documentation, you can be approved for financing immediately.

There Are No Application Fees

When you apply for a fast loan over the phone or in person, you’ll often be asked to pay a fee that covers the processing expenses. While it’s nice if you end up receiving financing, it’s more important that you’re able to pay back the amount you borrow. This means lenders will usually charge you an application fee. As you can see, this can add up quickly if you apply for multiple loans. Luckily, instant loan apps in India are free to use, so you won’t have to worry about paying for them either. If you’re approved for a loan, you’ll be able to accept it and make payments without having to pay any application fees.

Your Information is Secure While Lending Is Done Over Trusted Platforms

A big concern when using an instant loan app to get a fast loan is that your information is safe. No matter where you open an account, your information will always be protected. At the same time, mobile banking platforms are often hosted on remote servers. This means your information will always be protected, but it could also mean your data could be vulnerable to hackers. When you use an app to apply for a loan, however, your information will be hosted on your phone. As long as you don’t share your login credentials with anyone, your information will be safe. This means you don’t have to worry about hackers stealing your data while you’re getting a loan.

Disbursements Are Made in Your Pocket

When you take out a loan from a bank or another traditional financial institution, the only way to pay it back is to make regular monthly payments. This means you’ll have to decide on a monthly payment amount and then become responsible for paying it back. Most loans come with negative amortization, which means you’ll start paying interest within two or three years. If you want to make it as painless as possible for yourself to pay back the loan, you’ll need to make your monthly payment as soon as it hits your credit card. Using an instant loan app to get a loan, on the other hand, means you can make your payment right in the app. For example, you can set up a direct debit with your bank or set up recurring payments to get paid automatically. This means you won’t have to worry about remembering to make payments, and you can pay back the loan as soon as possible with minimum hassle.

You Have Control Over What’s Disbursed When

Lenders usually determine your loan payment amount according to your debt-to-income ratio (DTI). While this is a good indicator of your current financial health and ability to repay, it could also be misleading. What’s more, it’s often difficult to know your true debt-to-income ratio. This means you could be falsely misleading lenders and end up paying a lot more in interest than you should. With an app-based loan, you have full control over your payment amount. This means you can determine your payment amount according to your current finances, which should give you a more accurate idea of how much you should pay back.

Summing up

Lenders have been hesitant to make loans over mobile apps due to the trust issue, but this is slowly improving. If you want to get approved for a loan as quickly as possible, then your best bet is to apply for one through an app.

Anil Sumra

Anil Sumra is a Digital Marketing Expert with more than 10 years of experience. He loves to write on various financial topics online to create financial awareness. He holds a bachelor’s degree in Finance & Management.

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