Since fintech companies have gained popularity in India, “instant lending” has become an attractive mode of borrowing. According to Aditya Kumar, founder and CEO of Qbera, instant loans have become so popular that they have, to some extent, even eclipsed the popularity of credit cards. Just like personal loans, instant loans also have a term of up to 5 years, allowing borrowers to pay off their debt. Subsequently, there are fintech lenders who also offer short-term instant loans, for example from 3 months and up to 1 year. Kumar explained that applicants are required to meet a minimum income test and meet the lender’s internal credit standards which typically include a minimum credit score and clean repayment history.
Here are some factors that make instant loans popular for property, according to Kumar –
As a potential applicant, when you fill in your details in the online application form, your credit report is instantly retrieved from the bureau, and an algorithm reviews several aspects of your credit report and assesses your creditworthiness according to policy. internal credit from the lender.
In simpler terms, your credit score, repayment history, and other metrics such as your total credit balance and number of credit accounts are studied to gauge your overall creditworthiness and repayment ability. This all happens in less than a minute, after which you will receive instant approval.
The entire process of filling out your loan application and submitting your documents can be done online, thanks to technological advancements in the Fintech lending space. Once you submit your documents (KYC documents, payslips and bank statements), they are digitally verified the same day, after which you will receive a personalized loan offer. The loan offer will ideally contain your sanctioned loan amount, the interest rate on your loan, and other applicable fees and charges.
The total amount sanctioned may not be exactly what you requested, as the health of your credit is what ultimately determines your loan amount and the interest rate associated with your loan.
Once you have accepted your loan offer, you can expect to receive your funds in less than 24 hours! As incredible as it may seem, Fintechs have made this possible.
Mandates up to 5 years:
You can choose a term that perfectly suits your needs – instant personal loan terms extend up to 5 years. If you have existing credit accounts and want to consolidate your debts, you can opt for a longer term, low Emi plan which will most certainly suit your repayment capacity.
Loans for middle income professionals and those with below credit ratings:
The instant loans offered by Fintech lenders aren’t just for the cream of the crop with the best credit health and highest incomes. Even people with below credit scores and those with average income levels can apply and qualify for instant credit in India.