3 Advantages of Borrowing from a Private Loan App

 Do you remember the last time you availed of a loan to take care of an emergency? If you do, did you have to go to your neighbourhood bank and waste time standing in a queue at every step in the application process? No, right?  That's the thing – taking out a loan today – a personal loan, since that's the top choice for young salaried professionals – is nothing like the tedious process it was in the past. Today, taking out a personal loan is as convenient as it can be. You can avail of a loan online through a personal loan app. All you need to do is download the app on your phone, and ensure you have a steady internet connection. You can then begin the application process right there on your phone.

But what if you're not eligible for a personal loan? Well, the good news is that for every personal loan app, there's also a private loan app too. Here are the advantages of a private loan:

1. Flexible Credit Requirements

It is common knowledge that your credit score is one of the most important factors in deciding whether your loan application is approved, along with the interest rate you get. A less-than-ideal credit score is a top reason borrowers lose out on personal loans. When you apply for a private loan, however, you'll find that private lenders have flexible credit requirements. Whatever your credit score, you're likely to find an individual investor willing to offer you the amount you need. Your profile and credit score are shown to many individual investors on the private loan app. These investors then go through your profile and decide if they can lend you the money.

2. It's Online and Paperless

If you can apply for a personal loan from the comfort of home, the same goes for private loans as well. Private loan apps function as an interface between borrowers and private lenders willing to lend. You can download the private loan app on your phone, and that's where the entire borrowing process takes place. As for documentation, that depends on the private loan app you decide to use. Even then, you can just upload them online. Through Aadhar and eKYC, the private loan platform provides their lenders with information about you so that they can understand you better.

3. Ideal for Small Loan Amounts

Let's say you require some money, but not that much at the same time. With personal loans, there's usually a set minimum amount below which you can't borrow. Borrowing more than you require is a no-no, so this is where private loan apps come in handy. There are always several private lenders willing to lend to you at an agreed interest rate, basis your credit score and other factors. This means that there's bound to be at least one individual investor willing to offer you just how much you need, however "small" it may be. Once your private loan is approved, the lender just transfers the funds from his bank account to yours. 

In Conclusion

While the advantages of private loans have been illustrated here, the first step for any borrower is doing thorough research about the different lenders available. There are many private loan apps in the Indian market, so it's up to you to read up on them and decide which one is suitable for you.

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