Gone are the days when you would have to wait for days & weeks and go through a tedious paperwork process to avail yourself of a small loan amount for your immediate needs. We are entering into an era of digital innovation 2.0 and it has been dominated by Fintech innovations. From Large Banks to Start-up NBFCs everyone has jumped on to this trend and as a result, today an individual has multiple solutions for his/her financial needs at the click of a few buttons on a mobile app. Fintech has improved the user experience by facilitating payments, lending, and savings via digital platforms such as mobile applications and websites.
In India, financial institutions and non-banking financial companies (NBFCs) promote app-based lending which provides instant small loans, and many borrowers in need of instant small cash loans have embraced this fintech concept. There are, nevertheless, some realities and myths about fintech unsecured lending. Let’s debunk some digital lending misconceptions and realities so you can conduct safe financial transactions online:
Myth 1: You need a high Cibil score to get an Instant Small Loan through these apps.
Fact: You can get an Instant Loan even without a Cibil Score Digital lenders, unlike traditional financial institutions, can provide loans to customers who are new to credit (NTC). They use digital footprints and advanced machine learning tech to determine the amount of credit that can be granted without making the borrower’s ability to repay the debt unsustainably.
At Lenditt, we offer instant loans without your credit score, allowing New to Credit (NTC) and individuals with low credit scores to apply and enjoy the benefits of instant cash and an opportunity to improve their credit score.
Myth 2: You will need to provide a lot of documents for getting an Instant Loan through App.
Fact: You can get an Instant loan with a few KYC documents which can be scanned & uploaded through a mobile app and avoid the hassle of traditional paperwork Many application-based lenders offer immediate personal loans via mobile phone applications. The lenders would normally want soft copies of your documents in these situations. At the time of application, you will be needed to scan and upload the papers. The lender verifies these documents and the loans are approved as a result. This avoids the tedious paperwork that used to be a process in traditional banking. Documents like ID Proofs, PAN cards, Aadhar cards, Salary Slips, Bank Statements & Utility bills are generally asked for during your application on such Instant Loan Apps.
Myth 3: Interest Rates on Instant Loan Apps are significantly high.
Fact: Various Instant Loan Apps provide flexible interest rates based on the type & purpose of the loan and are yet very affordable The interest rate is determined by the loan’s purpose. Instant personal loans are unsecured since they do not demand collateral. If the borrower fails to pay, the lender will be unable to recover any losses. As a result, interest rates are slightly higher, ranging from 14 to 30% per annum which is still low compared to other instruments like credit cards.
At Lenditt, we offer the best in market interest rates, 0.1% to 0.4% per day allowing you to get an instant small loan without the burden of heavy interest rates.
Myth 4: Instant Loan Apps are illegal or Fraud.
Fact: Instant Loan Apps are legal and registered and follow all procedures issued by the RBI We are living in the digital age and even the crimes we see are through digital mediums but when it comes to Instant Loan Apps, they are legal and follow all the guidelines given by RBI. Having said that we always recommend using popular apps and doing a check on the company before making any transactions.
Many of these firms are registered as NBFC (Non-Banking Financial Company ) and in addition, many fintech has come together to form an industry body called Fintech Association for Consumer Empowerment (FACE) encourages lenders to abide by their own code of conduct and safeguard consumer interests.
Myth 5: Small Loan Apps involve a long processing time.
Fact: Small Loan Apps provide quick & instant loans directly credited to your bank account Instant Small loans are quickly disbursed because they are unsecured and do not require collateral security. They are often disbursed within 24 hours of the application. As the process is completely online and documentation is also all done online, such Fintech Loan apps are backed by smart technology, and post technical review loans are disbursed within hours.
There are many Instant small loan apps available on the app market providing a variety of services and offering a wide range of loans types with very attractive offers. We recommend you do a thorough check and go for the well-known apps which suit your needs and most importantly take a loan amount that you can repay without any burden on you.
Looking for an Instant Small Loan, check out Lenditt App on Android & iOS.