Personal loans have come to light as one of the most feasible financial instruments that are accessible and affordable. A borrower can access these debt instruments from banks, non-banking financial companies (NBFCs), or fintech companies.
However, in recent times, Fintechs have gained immense popularity. They have become potentially one of the most sought out options for availing personal loans. But, why is this so?
To understand in detail as to why FinTechs are more preferred over banks, let’s take this one at a time.
What is a FinTech?
‘FinTech’ – As the term itself suggests, it is the integration of technology into all the lending processes. Right from the application process to disbursal of the personal loan, fintechs have made it possible to reduce the touchpoints by making the process paperless and contactless.
The alliance of finance and technology have helped fuel the processes with technology led solutions that fasten the processes by 10x, eventually making credit accessible to the ones who need it and when they need it the most. Processes have not just become smoother but also the turnaround time has considerably reduced, enhancing the overall customer experience.
Let’s understand further how fintechs have made borrowing more feasible –
What are the benefits of choosing a FinTech for Personal loan?
The inclusion of technology in lending processes has proven to deliver a highly successful lending model. Below listed are the benefits of borrowing through this model –
Fintechs have made it possible to avail a personal loan from the comfort of your home. All you require is a smartphone and internet connection. There are multiple digital lenders available for the purpose of your borrowing. Also, the verifications carried out by these lenders do not demand you to visit any institution. It would all be done at your doorstep.
Read more – Personal loan in 3 Steps
Right from the application process to the disbursal process, all can be carried out online or on the lender’s personal loan app. You fill the application form, provide the necessary details, upload the essential documents and you are done! You just need to sit back and wait for your disbursal.
Fueled with flexibility
All these innovative personal loans that FinTechs bring to the lending platforms are all fueled with flexibility. Digital lenders have brought to light a plethora of different repayment options for borrowers to choose from. This helps borrowers pick the repayment option that best suits their monthly budgets and cash flow cycles. It adds an affordability factor to your personal loan.
FinTech players have innovated in an otherwise dull segment of personal loans. Personal loan Products like EMI Free Loan, Travel Loan, Wedding loan, Rental deposit loan and overdraft facility are examples of thoughtfully crafted products to meet different needs of borrowers. When you have the option of choosing your flavour for an ice cream, why not a personal loan suited to your needs?
Better turnaround time
Using technology to the fullest, fintechs have developed interfaces and proprietary algorithms to automate most of the processes like eligibility checks, verifications, credit assessments and so on. This helps reduce the human intervention saving a lot of time and helps deliver the funds to borrowers in a short span of time. It is possible to access funds as quickly as within just 24 hours!
Read more – Personal Loan in 24 Hours – How Is it Possible?
FinTechs have attained their reputation because of the symbiotic lending model that benefits both borrowers and lenders. It is the best option to opt for a personal loan through these institutions especially for aspiring millennials who like things which are instant and hassle-free.
Likewise, LoanTap is a FinTech lender that caters to the financial needs of millennials and makes credit available to them at affordable and customer friendly terms. We offer innovative personal loan products that are fueled with flexibility. We design offers for borrowers keeping in mind their needs and monthly cash flow cycles. This way the borrowers have a reduced monthly outflow towards EMIs and can spare some funds for other monthly expenses.
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