3 Advantages of Borrowing from a Private Loan App

Today, if you were to ask someone how they preferred to borrow a loan, chances are online loans or online loan apps would be their answer. As you may already know, a personal loan has emerged as the first choice for salaried professionals looking to secure short-term funds. This is largely due to the convenience a personal loan offers. There’s no need to arrange for any collateral against it. The loan amount can also be used to fulfil a variety of needs, with no restrictions on its usage. The disbursal time offered is also very short. Some lenders can give you your loan amount in minutes!

Even then, you need to have a backup in place for times when your personal loan application gets rejected. This may happen for several reasons. While you may think that nothing can be done, it’s not true. Just like you have personal loans and personal loan apps, you have private loans and private loan apps as well. Here are 3 advantages of borrowing via a private loan app:

Low Credit Score? No Problem 

It is common knowledge that your credit score is one factor that can heavily influence your personal loan application. The higher your credit score, the stronger your chances of getting a personal loan and vice versa. So, in a way, personal loans from a bank are quite restrictive. But this is not the case with private loan apps. While applying for a personal finance loan, you will be matched with several private lenders based on your credit score. This effectively means that these lenders are willing to give you a loan despite your “low” credit score. 

Hassle-free Application Process

Private loan providers refer to private individuals/investors who are comfortable lending money for a short-time period to individual borrowers. This usually happens because they have surplus funds and can afford to do so. Private loan apps act as a bridge between you (the borrower) and these private lenders. You just log into the app and apply for a loan. After entering the loan specifics (amount, interest rate, tenure), you will see a list of lenders who are comfortable lending to you at those terms. That’s all! You may need to provide other details/documents though, depending on your final lender.

Access to a Large Number of Lenders

Private loan apps have a unique application process where you, the borrower, are given access to many private lenders on the app. This is different from availing personal loans from banks and other online lenders because in that case, the lender is usually fixed. Private loan apps help you interact with different personal finance providers so that you can find a lender that’s affordable for you (based on factors such as the loan amount, interest rate, tenure, etc). These apps also give lenders a chance to size you up and see how risky it would be to lend to you based on repayment info, KYC details, etc. 

In Conclusion

As illustrated in the article, private finance loans can be quite helpful, just when you think you can’t get a loan because your personal loan application was rejected. Just make sure to read up on the in and out about borrowing on private loan apps, how these apps work, and the options available in the market.

Popular posts from this blog

All You Need to Know About Unsecured Business Loans

Business loans are sanctioned to existing business owners or budding entrepreneurs looking to start their own business. The business loan amount helps them get their idea off the ground. Existing business owners can use the funds to take care business expenses. The loan amount includes the principal amount which is paid with interest in monthly installments. How affordable/reliable is a business loan? Can you, as a business owner honour your installments on time? Other than loans from banks and NBFCs, you can get personal loans for business from FinTech lenders as well. In this article, we discuss business loans in detail. Business loans are broadly categorized into two types - secured business loans and unsecured business loans. What is an Unsecured Business Loan? The main difference between secured and unsecured business loans is that the latter requires the you to offer collateral while an unsecured loan does not require you to pledge any security. For a lender, secured business lo...
Read more

3 Advantages of Consolidating Debt Using a Personal Loan

Whenever you’re faced with a financial emergency, taking out an instant personal loan is sure to be among the top choices that you would usually consider, in terms of coming up with the required funds. This is primarily due to the convenience they offer, from the reduced TAT and loan disbursal time, to the minimal documentation required. Today, it is very easy to get an instant personal loan, owing to the vast number of banks, NBFCs, and FinTech companies that provide them. Whether you need a personal loan in Bangalore, or a personal loan in Chennai, you can get one in a matter of minutes.  While it is always a good idea to borrow only how much you require, it may so happen that you end up taking a number of such personal loans in quick succession. In such cases, your financial goals are sure to take a hit, because a lot of debt accumulation has now taken place. While keeping track of numerous EMI payments can be tough, there is an option that can make your life easier – con...
Read more

Tips to Get a Personal Loan with Low Credit

If you’ve ever borrowed a personal loan before, you’ll know exactly how important your credit score is for your personal loan’s approval. Your credit score is the gold standard against which all lenders across the country evaluate your loan approval. They use this to decide how risky it would be to sanction your loan. If you have a high credit score, you’d be a low-risk applicant for your lender. If your credit score is low, you’d most probably represent a high-risk proposition for your lender. Your credit score is a three-digit number that illustrates how financially responsible you are. It summarises how much credit you’ve availed of until now, your repayment behaviour, and your credit history. By now, you must be thinking that applicants with a low credit score cannot get a personal loan . But that’s not true. Here are four tips you can try to get a personal loan despite a low credit score: 1.Prove That You Have Good Repayment Capacity When it comes to getting a low credit personal ...
Read more