The world is moving towards a new phase where everything is digitised. Whatever we use in our daily life changes drastically. We can see a great transition from paper currency to digital wallets these days. We can get every piece of information at our fingertips with less effort. Nowadays, people are also so busy that they want everything done instantly. So why do you need to visit a bank to get a loan and waste your valuable time when it’s possible to utilise any digital application for a personal loan?
So when you are in an emergency, you don’t have to wait for the lengthy procedures in banks. Instead, with a personal loan app, you can get a loan to cover your finances. Recently, most banks and financial institutions started to provide the facility of a mobile application for loans. You can easily apply by uploading your documents. You can get a quick personal loan with the Buddy Loan app. It is the best loan aggregator, which provides loans with an interest rate of 11.9%.
Benefits of a Personal Loan Via Apps
When you want to apply for a personal loan, the thought that comes to mind is the long queues and lengthy paperwork. But with technology, you can see a new face in the lending business. Advanced technology gives you a platform to apply for loans and get them approved on the same day. Some of the benefits of digital loans are listed below.
Able to get instant funds in an emergency -:
A personal Loan via apps is like a bank in your pocket. So whenever you need instant funds, you can use your mobile and apply for a loan through a personal loan app. You can get instant approval and fund transfer on the same day.
Saves your time and effort -:
Online personal loans will help you avoid wasting time visiting a bank and waiting in queues.
No need for physical documentation -:
When you apply for a loan, you do not need to submit your documents to the lender directly. You can upload it to the application or website.
Hassle-free application procedures -:
Many banks, NBFCs, and other lending organisations provide hassle-free digital loan services. You only need to download the required application or go to the website, sign up, fill out the form, upload your documents and get the approval.
Quick processing of loan -:
Physical loan application takes time for approval. But with digital advancement, the average time for online loan approval is minutes. After verification of your documents, you can get an instant approval for a loan from Buddy Loan, and the transfer of the loan amount will occur in 24 – 48 hours.
The flexible loan amount and tenure -:
You can choose your loan amount and repayment tenure according to your necessity. You can get an online loan of a minimum of Rs.10,000 to a maximum of Rs.15 lakhs. As per your eligibility, you can get a loan within this range. And you can choose your tenure period from 6 months to 5 years.
Anytime accessibility -:
You can access a loan through apps anytime and anywhere. So in any emergency, you can get an instant loan with one click.
User convenience -:
There is no need for you to visit a bank for approval. You can apply for a loan by sitting at home or office or any other part of the world. Only need a smartphone, a good network connection and all required documents. You are good to go with a personal loan via apps.
Flexible purpose -:
You don’t need to provide any specific reason for your loan. You can use the fund for personal or business expenses. The purpose of the loan is purely up to you.
Direct transfer to your bank account -:
Once banks/NBFC verify your details, you can get instant loan approval. You will get a quick disbursal of the loan amount directly to your bank account.
Safe and secured -:
The details you share with any money lending apps are secured and kept confidential. There will be no risk of losing money. However, you can safeguard your information by securing it with a strong password.
Quick Personal Loan App: Eligibility Criteria
While applying for an online loan, you have to meet the eligibility criteria of the bank or lender. The essential eligibility factors are –
- The applicant must be an Indian citizen
- Should be above 21 years old when applying for the loan.
- Should complete a minimum of two years of employment in the current organisation.
- The monthly Income of the applicant must be Rs.18,000.
- For self-employed – The applicant must complete a minimum of three years in the business.
- The credit score of the applicant should be above 700. Using Buddy Score, you can check your credit score.
Required Documents for a Personal Loan Via Apps
- Identity proof – Aadhar, PAN, Passport, Driving Licence, Voter’s Id.
- Address proof – Voter ID, Postpaid or Landline Bill. Utility Bills.
- For salaried people, Bank statements and payslips for the past three months, Income tax returns for the last three years.
- For self-employed individuals, the last three months’ payslips and bank statements, the previous three years’ Income tax returns with computations and the last three years’ Balance sheet and Profit & Loss statements.
Things to Check Before Applying for Quick Personal Loans Via Apps
During an emergency, a personal loan via a reliable app is a significant relief that helps you erase your financial crunch. However, you must check for certain things before proceeding with a personal loan app.
Discover the required loan amount -:
Even Though you can get approval for a digital loan quickly, you should apply for only the required amount you need to fulfil your necessity. It will save you from piling up extra EMIs and interests.
Check the reliability of the Personal Loan App-:
Evaluate whether the app you use is reliable and registered under RBI. Every Personal Loan application has a connection to NBFCs. So you can collect the details regarding the particular NBFC/Bank and re-check it on the RBI official website.
Repayment tenure -:
You can select the repayment tenure according to our monthly budget and Income. Mostly, your tenure period will be from 6 months to 5 years. You can choose the terms as per how much EMI you can manage to pay per month. So, check your EMI with an EMI calculator and determine how much you have to pay for a specific tenure. Then, proceed with a better option.
Check for hidden charges -:
You must ensure that whatever fee you pay is essential for the loan approval. You need to pay a GST and a processing fee; that will also vary from one lender to another.
Check for prepayment options -:
You can pay off the loan amount early even if you have a long tenure. But it’s mandatory to check for prepayment penalties or charges.
Read the documents thoroughly -:
Before applying, read the information clearly to avoid missing details because some lenders will never disclose specific points before the loan approval. So it’s better to re-check the documents.
Check before transferring documents -:
Share your documents with the lender only after KYC verification. It will help you from identity theft.
Monthly Income -:
It is the fundamental factor determining your loan approval and the interest rates. Generally, lenders consider a person with a high Income as a responsible person with greater repayment capacity than people with a low income. Usually, they can quickly get a low-interest rate.
Credit Score -:
A credit score shows your financial transactions, including your loans, monthly payments, credit behaviour, and past credit history. A score of above 700 will help lenders to know your credibility. Eventually, you can get a low-interest rate. A low score displays your poor credit history, which affects your loan badly.
Pay off past loans and debts -:
Paying off your loans, overdue credit card bills, and monthly EMIs are essential to get a good credit history. It will highlight your credibility to the lenders. A record of multiple loans in your account can be riskier for you.
Keep distance from online frauds -:
Online scams are also increasing as the internet has become widespread and everything has turned digital. So, while applying, check whether the application is a verified one or not.
Employer’s status -:
Working in a reputed organisation can project you as more responsible for making payments on time. Thus, you can have much more flexible lending policies.
Debt-to-income ratio -:
You should maintain your debt-to-income ratio below 30%. It gives a clear picture to lenders about how much you are earning and how much EMI you are paying.
Relationship with the lender -:
You will be listed as a trustworthy person by the bank when you are an old customer with a good credit history. Thus, you will get low-interest benefits and quicker procedures.
History of defaults -:
It’s a healthy practice to check if there are any defaults in your credit history. If any default is there, you will get loans with high-interest rates or rejection for the loan. Mostly, lenders prefer people who have had no defaults in their credit over the last 12 months.
Although personal loan apps are helping hands and time savers, you must be more vigilant while applying for a loan. Double-check the credibility of an app and ensure you didn’t fall for any con trap. Finally, with RBI-authorised personal loan apps, borrowings are made more accessible.
When will you get the approval for a loan via apps?
You will get instant approval once the bank verifies your documents.
Is it safe to apply for a loan through personal loan apps?
Yes, but before applying, you must check the app’s reliability to avoid fraudulent activities.