New age fintechs are taking advantage of 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 financial technology companies.
Previously, processing a personal loan from a bank was time consuming. However, with the advent of online banking or mobile apps, customers can now avail instant loans at a faster rate.
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, loans require regular KYC documents and the money is credited the same day.
Unlike risk-averse banks and NBFCs, digital lenders offer financing to New-to-Credit (NTC) borrowers. As the process is digitized, it requires less or little physical paperwork.
“The growing affinity of borrowers towards fintech for personal loans can be attributed to their distinctive characteristics, made possible by technology,” said Madhusudan Ekambaram, co-founder of the Fintech Association for Consumer Empowerment. Express Financial.
Here are some key points to consider when obtaining an instant loan from a fintech.