Why the younger lot is making extensive use of an online personal loan

Posted by rupesh on November 30th, 2018

The younger generation, that is the generation Y believes in smart-work rather than hard work. This same motto can be seen in the way in which they live their lives. They splurge exorbitant amount of money to better their quality of life. They go out shopping for new appliances and enjoy by taking those last-minute trips; however, there are times when this generation faces cash- shortage. And in such times, rather than asking for financial assistance from family and peers, they would rather opt to obtain a loan. However, the loans offered by traditional financiers and loan sharks are higher interest rate in nature-but now they can make use of an online personal loan provided by new-age banks and NBFCs (non-banking financial companies). These loans are offered at lower interest rates than the ones provided by traditional financiers.

The main reason why people are opting for these loans is that they are unsecured in nature. Thus, you don’t need any sort of collateral to make use of them. Also, you can use the loan amount to fulfill any of your financial exigencies; as long as they are legal. You can buy yourself the latest gadget available in the market or even take care of your credit card debts. Also, you can make use of the loan amount to fund those last-minute trip expenses of yours.

The various reasons why the younger lot is making extensive use of an online loan are as follows:

• No bank visit required: The biggest worry when applying for a personal loan is the strenuous hassle of bank visits. However, when opting for an online loan, you don’t have to make any bank visits; you can simply opt for a loan from the comfort of your home or office. All you need to obtain an online loan is a sturdy internet connection and a laptop, computer or tablet. This is one of the prime features because of which the younger lot enjoys availing an online loan.
• Minimum paperwork: The younger generation really hates doing paperwork and other complicated procedures. Thus, the feature of minimum documentation is a big attraction for them. Also, the fact that these documents are available online is an added feature. Because then they wouldn’t have to go through the hassle of maintaining a catalog of documents.
• Secure: An online personal loan process is way more secure than the offline ones. This is because the chances of human error are nullified by the various mathematical algorithms used by these online loan applications. Thus, after opting for an online loan, you never have to worry about your data being leaked.
• EMI calculator: The financial institutions also provide various tools to ease your loan procedures. An EMI calculator is one of such tools that the younger generation can’t seem to get enough of. An EMI calculator helps you calculate the installments that you will be paying, on the basis of the principal amount borrowed, repayment tenure opted by you and the interest rates charged by the banks and NBFCs (non-banking financial companies). Thus, by making use of this tool, you can find out your installments and plan to repay them accordingly.
• Online assistance: 24/7 assistance and online account management are the additional features of making use of an application. You can even apply for an online personal loan anytime you want.