New age fintechs are leveraging digital lending and making the process of getting loans faster and more convenient than traditional banks. They offer customized products to meet the requirements of borrowers. Instant loan is one such product that a customer resorts to in an emergency.
Instant loans can be used as a personal loan from traditional banks or fintech companies.
Previously, processing a personal loan with a bank took time. However, with the advent of online banking or mobile apps, customers can now avail instant loans at a faster pace.
On the other hand, private banks offer pre-approved loans to some of their existing customers with good credit history. Any customer with a working bank account and a fixed income can apply for an instant loan. In most cases, the loans require regular KYC documents and the money is credited the same day.
Unlike risk-averse banks and NBFCs, digital lenders offer funding to Newbie Credit Borrowers (NTCs). As the process is digitized, it requires less or little physical paperwork.
“Borrowers’ growing affinity for fintech for personal loans can be attributed to their distinctive characteristics, enabled by technology,” said Madhusudan Ekambaram, co-founder of the Fintech Association for Consumer Empowerment. Financial Express.
Here are some key points to consider when taking an instant loan from a fintech