7 Game-Changing Personal Loan Trends That Will Make India Future Ready
India has witnessed a huge leap in the personal loan market – thanks to the increasing popularity of digital finance in the country! The competition between banks and non-banking financial companies has made personal finance accessible to almost everyone. You can apply for personal loans and get quick personal loans with faster approval, minimum documentation, and above all top-notch customer service. Today, we are witnessing major game-changers that have the potential to change the face of personal loans forever and for good.
7 trends that are turning in to game-changers in the personal loan market:
1. Rising competition in the lending market
Earlier, if you had to apply for a personal loan, your personal loan application was brutally scrutinized by most banks and non-banking financial institutions. Most of the applications were rejected and the ones which were shortlisted had to prove their repayment capability by providing extra proof in terms of more documentation. The scenario has changed now. With the increase in competition, banks and lenders are interested in increasing their sales by making personal loans accessible to more people.
2. Digitization of personal loan business
Earlier, you had to go to the bank many times in the hope of getting your personal loan approved. Now, everybody has a mobile phone and the fintech boom has made it possible to apply for a personal loan online.
Making the personal loan process digital has helped the sales to soar high. Time-consuming and tedious loan application process are the things of the past. The present scenario allows you to apply for a personal loan online. You can easily compare features of different loans and complete the entire application process in a few minutes.
3. Increasing flexibility in EMIs
The latest trend in personal loans is the flexibility it offers the borrowers in increasing or decreasing their EMI amounts depending on their financial situations.
4. Repayment modes
Waiting in a queue to make a payment is now passé. You now have options like Standing Instruction (SI), net banking, Electronic Clearing Service (ECS), etc.
5. Attractive interest rates
The high competition in the personal loan sector has made the banks and non-banking financial corporations charge reasonable interest rates for personal loans. When you apply for personal loan online, you will be able to compare various interest rates and then choose the one that’s most appropriate for you.
6. Credit score system
Credit scores give an insight into your financial credibility. These scores are the ratings provided by the credit rating agencies like Credit Information Bureau (India) Limited (CIBIL). The scores are based on your past repayments and financial position. Credit score system has made the entire process of lending less complex. If you have a good credit score, you stand a better chance of getting your loan approved.
7. Online Lending Platforms
Considered as the biggest change to affect the personal loan market in India, the online lending platforms have given people a higher level of comfort and convenience. These platforms offer instant personal loans apps and websites. Wondering why are fintechs the first choice for instant personal loans in India? Let’s know more!
Personal loans now are not restricted to traditional banks. There is a surge of online lending platforms. MoneyTap is one such online lending platform where people can get personal loans or personal line of credit ranging from ₹35,000 up to ₹5 Lakh. MoneyTap offers a number of benefits to their customers. Some of them are:
• Lower interest rates:
The interest rates offered are highly competitive (1.08% per month (13%pa) and are lower than what is offered by the traditional banks.
• Easy approvals:
Loan approvals are not as challenging as with traditional banks.
• Quick disbursal:
Once the personal loan is approved, the amount is disbursed within a few minutes.
• Minimum documentation:
You need just a few documents to get your personal loan approved.
• Flexible EMI tenures:
Repayment tenure range from 2 months – 3 years/36 months.
• A personal line of credit:
You can withdraw as low as ₹ 3,000 as a personal loan, or as high as your approved credit line. And you pay interest only on the amount you withdraw.