Personal loan apps and their proliferation throughout the Indian financial landscape are indicative of a true Digital India, one where they are ushering the country into a financially healthier and more inclusive era. Fintech or digital lending has become the new preference for consumers in India. With digitization maturing and the widespread adoption of smartphones and the internet across all corners of the country, more people are finding it easier to download and install personal loan apps to meet their short-term credit requirements.
At the same time, they are no longer daunted by a tedious and intimidating personal loan applying procedure with lots of paperwork and documentation. It is a fact that personal loans are immensely useful for most salaried and self employed professionals, helping them meet instant credit requirements and fulfill varied aspirations, while repaying the amount conveniently through monthly EMIs. The COVID-19 pandemic has also accelerated the shift towards digital lending and personal loans, particularly since people could not physically access banks and other financial institutions. Several digital lending apps and platforms have more than doubled their loan figures in the last couple of years.
Key factors working in favour of personal loan apps
Personal loan apps are riding the wave towards a financially healthier India due to several pertinent reasons and factors. These include the following:
- Quick and instant disbursal of loans – These apps are making it easy to apply instantly for loans with minimal documentation. The entire loan procedure has come down to a few minutes now. People can just check their eligibility and fill up the application form. With advanced verification systems, loans are disbursed post-approval, within a matter of minutes. This helps people meet instant credit needs without having to wait for days or weeks to receive the funds. From KYC and credit verification to other essential procedures, new-age personal loan apps are using advanced tech including data analytics, AI, and others to swiftly offer instant loans to their users.
- More financial inclusion and easy access- These apps have simplified and de-mystified credit, making it readily accessible for users throughout the country. Easy accessibility is driving more financial inclusion as a result, especially for those who are under-banked or under-served by traditional financial institutions. It also includes people who are un-served and are intimidated by the complex procedures involved in obtaining loans from banks. Many people are often kept out of formal credit systems due to their absence of security/collateral, credit scores, or being completely new to seeking credit. New-age loan apps and fintech players are bridging this divide and creating a financially healthier landscape in India.
- Smooth user experiences- These apps and platforms are also ensuring smooth and hassle-free consumer experiences with minimal human intervention, fully digital loan processes, paperless systems, minimal documentation, easy eligibility checks, online calculators, and more. Everything is done online, with instant access anywhere and anytime. No longer do people have to go physically to banks and wait for long hours at a stretch in order to get their work done.
It goes without saying that personal loan apps have contributed significantly towards revolutionizing the entire procedure of applying for loan and obtaining credit in India. These apps have made it possible for MSMEs, other small entrepreneurs and businesses, and also lower-income groups to obtain funding quickly as per their eligibility, without being deprived of access to the same. This instant funding has often helped people in times of emergencies or even to take care of other pressing requirements. Hence, it can safely be called the future of lending in the country. The entire ecosystem will be slowly migrating towards a more digital way of doing things, keeping customer comfort, convenience, service, and ease of access at the forefront. That philosophy has already been embodied by these apps and platforms.
Hence, they are completely transforming the industry, and leading us towards more financial inclusion and easier mechanisms. This is crucial since a large chunk of people are still outside the ambit of the formal credit/banking system in the country. However, technological adoption has kept pace with the changing times and new-age fintech solutions are making sure that people get credit at their fingertips. This is done through completely safe, secure, and regulated procedures, with total privacy and security of user information. Consider the example of LazyPay. The revolutionary app is providing personal loans as a verified and approved credit limit for consumers, from which they can make withdrawals anytime and pay interest only on the amount that they have borrowed. It also offers superb BNPL (buy now pay later) options for customers who can repay borrowed amounts either after 15 days or through convenient installments.
Here’s to a healthier and better financial landscape in the near future, one where everyone can easily access credit in times of need.