A personal loan is an unsecured loan that is typically offered by banks, NBFCs, and other financial institutions. Thanks to technology, a group of finance companies commonly referred to as fintech companies have emerged with a focus on online lending.
Many of these fintech companies and online lenders offer personal loans through mobile apps, which can be downloaded from the Google Play Store (for Android phones) and App Store (for iOS devices).
How do personal loan apps work?
Applying for a personal loan through a personal loan app is essentially the same process as with a traditional personal loan lender.
To get started, you’ll need to download the lender’s App for your phone. Once installed, you typically have to create an account before you can begin your application.
Some of the required details to include in your loan application are your name, contact information, annual income, and your desired loan amount.
Your loan application is then scrutinized to check your creditworthiness. A credit score is one of the many factors the lenders consider before they decide to approve your loan. A strong credit score ensures higher chances of personal loan approval at a low-interest rate.
Should I use a mobile app for a personal loan?
If you want a faster and easier experience, then filling out an online application through a mobile app is recommended.
Reasons why you should use a personal loan app to apply for a personal loan
- Get emergency cash
A personal loan app is like a portable bank. You can take it anywhere and use it anytime. So, while on the move if you encounter a financial emergency, this app becomes your go-to place. You just have to dig the mobile out of your pocket and apply for a personal loan through the mobile app. - Save time and effort
A personal loan app allows you to apply for a loan online, thus enabling a paperless process that saves time and effort. - Ensure security and safety
The personal loan apps use advanced encryption technologies that ensure your personal and financial information is safe and secure. - Immediate approval and instant cash on the app
When you apply for a loan through the app, the lending decision is intimated to you almost immediately. Once approved, the loan disbursement is quicker than through traditional banks. - Stay updated and keep track of all your transactions
Mobile loan apps are designed to provide a seamless user experience. You can check your loan details like how much debt is outstanding, how much you have paid so far, when is your due date, etc. The app can also send you an automated notification regarding payments through email or SMS. - Access to money 24/7
You have 24/7 accessibility to cash on your phone. You can use the money whenever and for whatever you need. The app is really helpful when you are traveling and is in need of cash. With cash on the app, you can withdraw it anytime and anywhere.
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Age Criteria: 21 to 60 years for salaried and 25 to 65 years for self-employed
- Income: The minimum income criteria vary from lender to lender, but usually it is ? 20,000.
Best Instant Personal Loan Apps 2020
Here is a list of the top 3 best instant personal loan apps in India:
- MoneyTap
• Offers a personal loan of up to ? 5 Lakh in the form of a personal line of credit
• You can withdraw as much as you want, as many times as you want from your approved credit line
• The interest is charged only on the amount you withdraw.
• Flexible repayment option with EMIs spreading over a loan tenure ranging from 2 months to 3 years - StashFin
• Offers loans from ?500 to ? 5 Lakh
• Repay the EMIs only electronically.
• Loan tenure ranging from 3 months to 36 months - Dhani
• Offers a personal loan of?1000 to ?15 Lakh
• Loan tenure ranging from 3 months to 24 months
• The processing fee is 5% of the loan amount
Want to know the rest of the best personal loan apps in India? Click here.
- The application process is simple and secure. A chatbot guides you with the registration process.
- Get approval of up to ?5 Lakh in minutes.
- Once approved, you can transfer money as little as ?3,000 to as high as your approved credit limit to your registered bank account with just a tap.
- You can use your credit line like a credit card too minus the high-interest rate and cash advance fee of a traditional credit card. Just like any credit card, MoneyTap credit card also offers great benefits and rewards.
- You can use this credit card at any retail shops or online sites and convert your purchases into affordable EMIs.
- Once you are approved a MoneyTap’s line of credit, you can keep it for life as long as you keep repaying the amount you borrow.
- The interest is charged only on the amount you withdraw and not on the whole credit limit approved.
- MoneyTap offers complete transparency of all your transactions. You can manage your transactions, track all your transfers, charges, card spends, charges, payment dates, etc. through the MoneyTap app. Also, get notifications through email or SMS regarding payments and other loan-related information.
- MoneyTap is in compliance with all security regulations mandated by RBI. The app operates on the industry-standard HTTPS security protocol.
- MoneyTap Credit Card is accepted at over 1 million MasterCard merchant establishments in India and over 25 million establishments worldwide. It allows you to buy any currency and repay it later in Indian Rupees.
Steps to Take a Personal Loan from MoneyTap
- Download MoneyTap
- Register with your KYC details
- Submit the soft copies of the required documents
- Get personal loan pre-approval within minutes
- Get the personal loan amount on your app once final approval is done
- Start using the App for cash transfer into your registered bank account with just a tap or swipe MoneyTap card at retail outlets
- Convert your purchase or withdrawal into flexible EMIs
- Keep track of all your transactions
- Use the money anytime from anywhere
Author Bio:
Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge the name change) and works with MoneyTap, India’s first app-based credit-line. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters and when they want to get a loan. He has made it his life’s mission to help and educate people on various financial topics, so email him your questions at shiv@moneytap.com.
