Fintech companies have gained immense popularity in recent years, and with good reason. The term ‘Fintech’ is basically short for financial technology, and these companies have completely changed the entire borrowing process. Starting from the application process and running all the way through to the disbursal of the loan amount, fintechs have made it possible to take loans without using paper. Thanks to state-of-the-art technological integration and supreme interfaces in addition to not-too-stringent eligibility criteria and smooth documentation processes, fintechs have made it extremely easy to access instant loans.
As the term suggests, instant loans provide access to funds instantly. Once you apply for an instant loan from a fintech, the amount is usually disbursed within a matter of minutes, which makes fintechs better options than banks and financial institutions that take days to process a loan application.
There are several features that have made fintechs the preferred option among borrowers of personal loans. Listed below are a few:
Fintechs are very quick when it comes to the approval or rejection of loan applications. They go through your credit report and check your eligibility based on certain factors to determine whether or not you will be a trustworthy customer. Risk-assessment algorithms are used by most fintech companies to evaluate your credit profile. Your income, your current company, your age and your credit score are the main factors based on which fintechs make their decisions regarding approvals and rejections. And once you have been approved, the loan is disbursed in a matter of minutes.
Gone are the days where you would apply for a loan and an executive from the bank would come to your home or office to verify your documents. Fintechs have made everything digital, even the verification process. Not only can you apply for a loan online, but you can also upload your documents online along with whatever information is required. The verification of your documents will happen digitally, thereby saving you time and effort. Thanks to seamless and advanced processes, the verification process will be complete in minutes.
Majority of the banks and financial institutions that provide personal loans offer a minimum amount of Rs.50,000 and the minimum tenure for these loans is 12 months, while the maximum tenure is usually set at 60 months. However, the maximum amount varies from bank to bank, with Rs.25 lakh quoted as the highest amount by most banks. Fintechs, on the other hand, offer personal loans as low as Rs.20,000 and the tenures are very flexible too, starting from just three months and extending up to 60 months. Thanks to flexible tenures and loan amounts, fintechs are attracting more borrowers than conventional banks and financial institutions.
One of the main reasons for the rejection of personal loan applications is that the customers work for employers or companies that are not listed. Most of the major banks in the country have a list of companies that are listed in their database, and loans are only offered to these employees. Fintechs, though, are not too strict about who you work for. Even if you have just found employment in a start-up that is not listed in the database of the big banks, fintechs will approve your application if they are satisfied with your credit profile.
The following are the general eligibility criteria for individuals seeking instant loans from fintechs:
Fintechs have developed a strong reputation in the banking industry. If you are looking for an instant loan, consider taking one through a fintech as the eligibility criteria are easier to meet and the terms can also be far better than those offered by conventional banks and financial institutions.
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