In a traditional setup, if you needed a personal loan for purchasing a car, carrying out home renovation or even consolidating your credit card debt, you would wear your nicest clothes and head down to the local bank to apply for a personal loan. Fortunately, the internet has streamlined the process of applying for a personal loan. You can now sit in the comfort of your home and apply for a personal loan online in your pajamas. Yes, that’s new age borrowing for you!
Online lending platforms have emerged to solve your unexpected money problems without the hassles of you having to go to the bank. The new online personal loan process is fast, convenient, and effective. And that’s not all. There are various other reasons why getting an online personal loan is a good idea:
1. Perfect for Emergencies
Most of the times, most of our expenses are planned. However, there are certain expenses that are impossible to foresee. At times, the need for money is so urgent that you do not have the time to wait until the traditional bank approves your loan application. Online personal loans are apt for those emergency times because your personal loan is approved and disbursed in a matter of just a few minutes.
2. Easier Access
The global economic meltdown has made banks finicky about lending money. It’s not the case with online loan services. You can easily get a loan even if you have a low credit score or no credit history at all.
Convenience is one factor that makes online personal loan the preferred choice. The loan application process is not elaborate; you have to fill out a simple online form from the comfort of your home. The loan is then quickly approved and disbursed. You don’t need to make multiple trips to traditional banks to discuss your loan application status with the bank employees.
4. Lower Rate of Interest
Since personal loans are unsecured loans, traditional banks charge a higher interest rate due to the risk involved. However, many FinTech companies offer personal loans online that is accessible to a broad range of people at an interest rate much lower than what the traditional banks charge.
5. Round-the-Clock Service
Emergency money needs do not choose a time to occur; the need can even arise at night, which is a non-convenient time as the banks are closed at that time. With online loan services, you just need a laptop and internet to apply for a personal loan and get instant access to money.
6. Saves Time
With traditional banks, you need to constantly follow up and wait for days to get your personal loan approved. With online personal loan lending apps or websites, the process of application and approval is quick and easy, thus saving time, efforts and money.
7. Numerous Options to Choose From
FinTech is changing the financial services from outside in. There are now many online lending platforms such as LoanTap, FundsIndia, CreditMantri, MoneyTap, Flexiloans, etc., who have been successfully offering unsecured personal loans. The number of options available in personal finance is impressive; however, before deciding to apply, shop around. Compare the interest rates of various online lenders and most importantly check whether they are trustworthy.
About the Author
Shiv Nanda is a financial analyst who currently lives in Bangalore and works with MoneyTap, India’s first app-based credit-line. Shiv eats, breathes and sleeps finance, to the dismay of friends who’ve endured unsolicited advice on their investment choices, budgeting skills, or lack thereof. Luckily for them, Shiv has diverted this energy toward writing about various financial topics online. He loves it when people actually ask him for advice on how they can use the flexibility of MoneyTap’s personal loan. To know more, please visit www.moneytap.com/personal-loan.html.