We are at the end of the month, and many people are waiting for the next month to roll in to get their salary. Having said that, we are also at the year-end and everyone wants to spend and enjoy the New Year Eve. Digital lending platforms and NBFCs such as Zestmoney, Cashe, Bajaj Finance, PaySense, LoanTap, MoneyTap, Qbera, EarlySalary, etc. offer loans, especially to the people looking for instant, easy and fast loans.
Usually, these new-age lending platforms target millennials and aim at meeting their demands with instant money. These loans are also offered at a competitive rate, along with improved customer experience, and streamlined processes. These instant loans are also crafted especially for different types of millennial needs, starting from advance salary loan to holiday loan and wedding loan.
These platforms also help individuals who are new to the credit space and are rejected by banks for loans, for the lack of credit history. Even though the need for credit has always been there, people like these have not been fortunate enough to get such financial aid with ease. Most big banks do not lend money to the underserved Indian populace, especially due to low credit score or no credit history. Hence, the category including both salaried and self-employed millennials, are catered by these new-age lending platforms, to resolve their financial emergencies and fulfil their aspirations.
What makes these digital lending platforms unique is their total digital approach, as the name suggests, to facilitating instant small-ticket loans. The ticket size usually ranges from as low as Rs 3,000 to Rs 1 lakh. Some even offer high than that, depending on the borrower. These instant lending institutes generally have a tenure ranging from 1 to 12 months and approve a loan up to a certain percentage of the borrower’s salary.
These instant loans can be used for various causes, for instance, if you are planning to buy a laptop and it is priced at Rs 48,000, and you have managed to save Rs 40,000. The shortage of Rs 8,000, that you are facing can be fulfilled by these digital lending platforms, instead of settling down with some other brand that falls in the budget. Hence, these short-term, small personal loans are a huge relief in such cases, as it enables borrowers to borrow a small amount, then and there.
The interest rate charged by these instant loan providers is quite high, hence, try to payback within the due date. The rate usually ranges from 2.5-3 per cent per month and even 36-40 per cent in a year.
Also, the disbursement of these loans is quite fast. Many of these companies claim to disburse loans in not more than 10 minutes. On the other hand, some dispurses loans in few hours after approval. To get loan approval, you need to go to their app, register yourself, select the loan amount, and the tenure, and upload the documents needed. They will go through your profile and once approved, you will receive the money in your bank directly bank account within the allotted time.
Experts suggest most people take these loans to meet their day-to-day needs, especially at the end of a month. Additionally, repaying the loan on time helps first-time borrowers build up a credit history, which will help them become eligible for high-value loans that they may need in the future.
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Source: Financial Express