A personal loan is one of the easiest options to deal with unexpected expenses or financial crunches. There is a wide range of personal loan apps that offer to serve all the loan related needs to their customers. Here is a complete guide -
What do you mean by a Personal Loan?
A personal loan is an unsecured financial assistance i.e the lender will not ask you to pledge any collateral to avail this loan. As there is no security taken against it, its rate of interest is generally high. Also, it is readily available through instant loan apps after easy verification. It has no restrictions on its end-use. Therefore, this fund can be utilized for any purpose – Travel, Education, Wedding, Home Renovation etc. But applying for it through a bank can be tedious given the lengthy process, stringent criteria for eligibility etc. Hence, personal loan apps are a convenient medium through which one can avail an instant loan very easily.
What exactly are online Personal Loan apps?
These days, there is a wide range of personal Loan apps that have made the process of availing funds much simpler than the traditional banks. These mobile applications are developed to help individuals in the easy availability of financial assistance and tracking information related to it. When you avail a loan from banks, following up with them can be very tedious and time-consuming.
Personal loan apps have made it very easy for individuals to apply for a loan by providing a single platform that caters to almost all the needs of their customers. These apps are available for android as well as iOS phones. Although some lenders may not have an app. In this case, you may have to access their service through their website on google.
What are the steps to use the instant personal loan app?
1) Downloading & installing the application –
Before applying for an online personal loan, you will have to download and install the personal loan app. PaySense, Early Salary, Bajaj Personal Loan app, Tata Capital, Navi, Money Tap are some of the popular online personal loan apps.
2) Login and Applying –
After you install the app, the next step will be logging into the app. Fill in your details the app asks you for while applying for the loan. You may need to fill in your KYC details, Salary, Account number, etc. Sometimes, the app may also ask you to click a selfie.
3) Approval –
There apps like the Bajaj Personal Loan app, Dhani, PaySense, etc which process your application & give approval for your loan within a few minutes if you are completely eligible. Your loan amount gets credited to your account shortly after you receive the approval.
What are things to keep in mind before applying for an instant loan?
1) Ascertain the amount that you require and the purpose for which you want to spend it. This might assist you in staying focussed on spending the amount in the intended direction.
2) Your CIBIL score is an important aspect that is closely scrutinized before the approval of your loan. It is necessary to analyse your Credit Health Report and improvise on your credit score. An ideal score would be 750 and above to get quick approval for your online personal loan.
3) Your income gets used for the expenditure of several things. You need to ensure that enough amount is remaining to pay an EMI; AFTER fulfilling your domestic needs. Only after thorough planning, you can ensure that you would be stably paying your EMIs for online personal loan on time.
4) Most of the personal loan apps have in-built EMI calculators that can help you get an estimate of the EMI, interest, and tenure of your loan. Hence, it is advisable to get a rough idea of your loan expenses beforehand.
5) Having all the documents ready on time can help in getting a speedy approval of your loan. Obtain a complete list of documents beforehand and collect all the enlisted items in one place for your convenience.
6) Flexi loan is a novel product in the market and is gaining popularity rapidly. In this phenomenon, you are given a line of credit as per the strength of your credit health. From this line of credit, you can avail as much amount as you need. You will be charged interest only on the amount you have used and not the entire line of credit approved for you.
7) Early Salary, Bajaj Finserv Personal Loan, Money Tap, Tata Capital are some of the popular personal loan apps that you can think of while availing an online personal loan.
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