How To Choose The Best Online Loan App

Loans are the easiest way to meet any financial need. This financial need can be to buy an asset like house or car, go on vacations or a medical emergency. To meet these ends you may have to take a personal loan. Nowadays, banks and other financial institutions provide personal loans but mobile applications provide immediate personal loans.

Traditional banks and other financial institutions take a long time to process the loan application and charge a high rate of interest. On the other hand, mobile applications provide instant loans within an hour from their lending partners. The rate of interest may be high or low depending upon the credit score of the borrower. These apps require minimum documentation and the complete process is online. The loan duration is shorter than the traditional bank loans. Since the process is less time consuming you get a personal loan approved in a hassle free manner.

How To Choose The Best Loan App For Your Requirement

There are many mobile applications that provide instant personal loans to meet the financial needs of the borrower. Though they all may have similar features but the borrower should consider the following points before choosing the loan app:

• Check Eligibility –

The eligibility criteria may include age, geography, credit score, employment status, source of income and other such factors. The borrower should check the eligibility criteria before applying for the loan with an app. Most apps require the borrower to be a salaried person with a minimum salary of Rs 50,000 and be aged between 23 to 58 years.

• Loan Amount And Duration –

The loan amount and duration differs from app to app but the most common loan amount disbursed ranges from Rs 10,000 to Rs 4 lakhs.

• Documents And Verification –

Generally the documents needed are the borrower’s identity proof and address proof. The documents supporting these proofs are PAN card, aadhar card, passport and driving license. Some apps may require all of these while others may require any one or two of these. Also the borrower may consider how quickly and seamlessly the verification process is done so that the loan can be disbursed as soon as possible.

• Competitive Rate Of Interest –

The rate of interest depends on the loan amount and the credit score of the borrower. Rate of interest is an important factor to choose the loan app because repayment of the loan starts immediately. A single skipped or delayed EMI will have a greater effect on the whole loan repayment amount. Thus, the borrower should look for a low rate of interest.

• Special Features –

In case a borrower has a bad credit score then he should choose an app that decides the loan approval on the basis of factors other than past credit history. Some apps take into consideration social profile to approve a loan.

• Credibility Of The App –

The borrower should always check the credibility of the loan app. It is advised that the app should be a state regulated organization.

• Immediate Funding –

Since the borrower is choosing a mobile app over the traditional bank to get its loan approved, he should select the app that will disburse the loan immediately.

• Payment Schedules –

The borrower should select the app which provides flexibility in its repayment schedule. The app should give a grace period to repay the loan without negatively impacting the credit rating or history.

• Freedom Of Usage Of Loan Amount –

The borrower should ensure that he is allowed to use the loan amount for any purpose that he wants to rather than for a specific transaction like paying for utilities like rent.

• Linking With Digital Wallets –

Linking the loan with digital wallets will enable features such as auto-pay, monthly subscription deductions etc.

• Interface Of The App –

The user friendly interface and the speed of the app will determine how fast the borrower can register and apply for the loan. Hence, make sure that the interface is good and devoid of bugs.

• Additional Costs And Conditions –

Many of the applicants fail to be vigilant when it comes to additional costs and other conditions applied by these mobile apps. As a result they end up losing a significant amount of money. Thus, the borrower should conduct an extensive research into processing rates and other innuendos.

• Customer Service And Support Provided By The App –

The app should be able to provide customer support and assistance around the clock.

Conclusion

The loan apps provide instant personal loans with minimum documentation. With growing consumer awareness, popularity, and adoption of loan apps, the market has proliferated over the past few years and welcomed several new players. The borrower needs to be aware of the terms and conditions of the app before selecting it for loan approval.

IIFL Finance customised personal loans are designed around your capital requirements with a hassle-free application process. This quick personal loan can accomplish your plans such as marriage, vacations, home renovation and much more. IIFL Finance loan app also provides hassle free loan with little documentation.

IIFL Finance personal loan comes with attractive, affordable, and lowest interest rates to help you raise funds instantly. When you apply to get an instant personal loan, it is processed in less than 5 minutes without any extensive documentation. Personal loan EMIs are flexible and allow for better liquidity and easy achievement of set personal goals.