4 Reasons to Apply for a Private Loan from FinTech Lenders

Today, personal loans have emerged as the go-to solution for salaried professionals and self-employed individuals in a cash crisis. There are also many different types of private loan providers apart from traditional banks and NBFCs. FinTech players are top-rated right now, considering India has the highest FinTech adoption rate globally (87%) compared to the global average (64%). They have also developed a strong reputation for themselves, as their eligibility criteria are more flexible and easier to meet. FinTech lenders also offer loans with better terms as compared to conventional banks and financial institutions. Here are four reasons why you should apply for a private loan with FinTech lenders:

1. Instant Approval

When you think of taking private loans from a bank, do you think of instant approvals? No! The good news is that FinTech lenders have changed this completely. Once you download the app / go to their website and fill in a few basic information about yourself (including your PAN), you'll get to know if you're eligible for a personal loan with your lender. Along with checking your credit report, FinTech lenders also have a robust risk-assessment algorithm that provides an accurate picture of your overall credit profile.

2. Simple Application Process

Thanks to its straightforward application process, it's effortless to apply for a private loan via FinTech lenders. Their loan application process is entirely online on either the app or website. This means that you can avail of a private finance loan from the comfort of your home itself without having to step out. All you need to do is input a few details about yourself along with your PAN. Your lender will then evaluate your eligibility by checking your credit report. In less than an hour, you'll know if you're eligible for a loan. Just create your profile by uploading your KYC documents. Once it's confirmed, apply for the loan amount of your choice and add your bank details. You'll get the loan in a matter of minutes.

3. Direct Bank Transfer

The advantage of applying for a private loan with FinTech lenders is that you get the funds credited directly into your bank account. Once your loan is approved, add your bank account details – this will take only two minutes. Once that's done, your lender will credit the loan amount into your bank account in under five minutes! This saves a lot of time and gives you the facility of getting your loan on the same day of application (as long as all your documentation is in order). This is a feature very few traditional lenders can boast. 

4.24x7 Loan Availability

FinTech lenders have made the process of applying for a private loan very reliable. First, the application process is entirely online, which means that you just need the lender’s app or website and a strong Wi-Fi connection (along with the relevant documents, of course). You can fill in your loan application on their website or create your profile on their app, depending on your lender.  Considering that you can apply for a private finance loan using just your phone, you can apply anytime, anywhere (especially on Sundays). This is a welcome relief from traditional banks closed on the second & fourth Saturdays of the month and all Sundays.


Wrap Up

Here are four (of many) reasons why you should apply for a private loan with a FinTech lender. But no matter what, make sure that you only proceed with a lender who’s able to meet all your requirements at an interest rate that’s affordable for you. Also ensure you have adequate repayment tenure before even thinking of applying for a loan.


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