Although a personal loan is provided without any collateral, it isn’t easy to choose one from so many lenders you must have seen on top Loan Apps. Whether you need credit to cater to mid-month crises or meet immediate expenses or any important expenses like purchasing a new laptop for your business that you have been delaying due to lack of money can be met with availing a personal loan. The lender evaluates the borrower based on several metrics like past months’ salary slips, credit score, job profile, etc., and, if found satisfactory, disburses the loan. Here the question arises, where one should avail personal loan- go traditional route banking or choose best loan apps such as Kreditbee. Both of them have their own benefits, with the former providing a loan up to 40 lakh and most of the online loan applications only provide up to Rs 5 lakh Loan. In this article, we will compare these two modes of banking using different comparison headers.
When you are availing of a personal loan to meet emergency needs, an extensive long documentation process is the last thing you want to surround yourself with. This is where best loan apps distinguish themselves apart from traditional banking services. Loan Applications like Kreditbee require the individual to submit very minimal documents such as PAN card, Identity proof, basic workplace details such as the company you work with, and your salary credit proofs.
As stated above, during emergency cases, one would want minimal documentation and quicker disbursal time. However, in traditional banking, it can take anywhere from four to seven days to avail of a personal loan, along with multiple visits to the branch office. Kreditbee, one of the best loan apps, the lending process is entirely online. That is, one can apply for a personal loan from anywhere and can submit requisite documents online itself. Depending on your eligibility, the personal loan can be disbursed within 15 minutes and will be directly credited to your bank account, which one can use as per their preference.
The difference in interest rates
It is seen in many cases that interest rates on personal loans charged by banks differ from what is being charged on best loan apps. Hence, it is a wise choice to do a quick search on any loan aggregator website to compare interest rates offered by different financial institutions. The interest rate charged by kreditbee is 1.5%-1.02% per month which can help salaried people as they have a monthly cash flow coming in that can help them pay off their debt early on without dragging it out for years.
Time holds great value, especially in today’s world, where everyone is on the run. One of the Best Loan Apps called kreditbee provides a personal loan online where the amount gets credited into your account provided you submit the requisite documents.
Consider other metrics
We all are aware how maintaining a credit score above 750 is important to get good credit card offers and plays a huge role in deciding your eligibility when you are availing of a personal loan. However, if an individual has never owned a credit card in their life before and applying for a personal loan for the first time, they will have a lower credit score. Kreditbee evaluates prospective borrowers on other metrics apart from looking at their CIBIL score. This helps first-time borrowers to avail of personal loans despite not having a credit score.
Availability of new products
To ensure more and more people try their brand, online instant loan applications are providing innovative products like superbike loans, wedding loans, etc., which are catered to meet the specific financial needs of people.
Ideal for small cash loans
When you do not require a large sum of money, online applications can come to your rescue. Get Kreditbee loan from as low as Rs 1000 to up to Rs 2 lakh that can be really beneficial if you are employed that helps you pay off your loan early on.
No prepayment charges
If, after availing of a personal loan, you find yourself in a position to pay off the loan ahead of time and it doesn’t affect your other financial commitments, then these allow you to clear off your debt without charging prepayment fees. This isn’t the case with banks where you must pay the penalty if you wish to repay the loan before the stated date.
Unlike usual banks, one doesn’t need to wait for the bank to open to apply for a personal loan. With these instant loan applications, one can submit required documents and request a personal loan at any time of the day. If everything is in order and depending upon your eligibility, the amount will be disbursed into your account.
Perfect for first-time borrowers
First-time borrowers who haven’t visited a bank for loan purposes before and don’t have experience in what to look into the loan application before applying, these online applications are a boom. It is much easier for them to get a loan from these apps than from a bank, as the former one only requires salary proofs, but a bank would like to delve deeper into knowing how the borrower will be paying off the loan.
Working people and young millennials are finding it easy to avail of personal loans through their fingertips by submitting minimal documents. Instant approval and easy accessibility are a few of the features that are making these applications popular amongst people. Most of the time, the prerequisites of the personal loan app require the borrower to be a salaried individual, and in such cases, people who aren’t salaried find it difficult to apply for a loan via online instant loan applications. However, one should be careful while applying for a loan via loan apps as many such companies have mushroomed up with promises like ‘instant loan’, quick turnaround time but aren’t verified and registered with the RBI. Do make sure you do little background research about the online application you are availing loan from.