Why instant personal loan online apps over Banks

Posted by Bhavesh Shinde on November 25th, 2019

In recent times, the financial platform has broadened. Earlier it was the traditional way of borrowing money from lenders and now it has advanced to either using banks, NBFCs and in the recent times there is introduction of instant personal loan online apps which have changed the dimensions of loan system.

People are often in dilemma, on the platform to choose over to avail personal loans. Each one of it has pros defining its usage.

Below are some of the pointers on why you should choose instant personal loan online app over the other platforms:

•  Basic difference between instant personal loan online app and banks:

The basic entity that makes instant personal loan online app to stand out from others is its ability to provide instant loan to borrower. Unlike banks which take a month to approve your loan, the apps take couple of hours to complete transaction which is a great leap for borrowers looking for quick transaction.

• Collateral:

Collateral is an asset that is demanded as a security to be submitted while availing loans, banks do not provide loans to borrowers without collateral which becomes obstacle to many people who are unable to provide collateral. The instant personal loan online apps do not need any security or guarantee as a collateral which is one of the major reasons of choosing online portals over banks. This facility helps in laying broad horizon for people who might be small businessman, part-time workers, students etc.  to enjoy the loan facility in quick time interval.

• Relation with borrowers:

It is very important that there is healthy and trustworthy relationship between borrowers and lenders. With banks, borrowers have issues about its strict policies, time consuming procedures etc. while the instant personal loan online apps have been successful in building healthy relationship with borrowers with its 24x7 assistance through FAQs answered on the app also there is no delay in transaction, features are developed in app to make its use easier for borrowers.

•  Credit score:

Banks always look for a good credit score of their borrower before availing a loan which proves to bad omen for people who have not indulged themselves in financial transactions or due to some issues have not been able to improve their credit score. In situations like this people prefer using instant personal loan online apps which provide loans without any consideration of credit score.

• Documents:

Taking loans should not seem to be burdensome task, it should be easy and efficient. Unlike banks, the instant personal loan online apps demand only for scanned copies of Aadhaar card and PAN card with attachment of your recent selfie. The minimal demand of documents helps the borrower to apply for loans with ease and doesn’t consume time in making arrangements of heap of documents.

• Convenience:

To submit your application, documents, withdraw your loan amount or even in small queries borrower always has to visit the nearby bank branch. The instant personal loan online app ensures your convenience. All the process of loan is just clicks away on the app.

Hope the article has been able to give enough reasons on the debate of whether to loan from instant personal loan online app or banks. Happy borrowing!