Instant loan apps have brought about a great revolution in the world of personal finance and loans. Although traditional banks are completely safe, secure, and legal, digital loan applications provide fast approval and dispensation. These are the two most desirable characteristics that you seek when you are filling out a loan application, but are present in two contrasting sources. The debate between an instant loan app and traditional banks is unending. So, which one is better for you? How do you choose? Here are some significant comparisons that would help you to make an informed choice for your loan application:
Application Process
When applying for a loan with traditional banks, you need to visit the branch physically. Traditional lending requires the applicant to submit all the documents manually, and handling these can consume a lot of time. Whereas, digital lending from a money loan app is different.
The process of applying in an instant loan app is comparatively easier than in a regular bank. The application processes are conducted online. This means that you can apply from anywhere and at any time of the day. Digital lending apps are customer-friendly, unlike traditional banks, since all the documentation and KYC are electronically submitted. This saves a lot of time and streamlines the application process.
Interest Rates
Unlike a money loan app, traditional banks’ interest rates often depend on factors such as credit score, CIBIL, income, and the applicant’s creditworthiness. Furthermore, traditional banks’ interest rates are also higher than those of digital lending applications. This is because these financial institutions have higher operational expenses.
An instant loan app offers competitive interest rates to anyone looking for an online loan. These applications operate on consolidated processes and, hence, can offer attractive interest rates that are lower than those of traditional banks.
Documentation and Disbursal Process
Traditional banks follow a very time-consuming process of handling and approving all the documents manually. Furthermore, the applicant has to visit the branch multiple times in order to get all the documents right, contrary to what happens on a money loan app. All of this makes the approval process quite tedious and lengthy, which automatically delays the loan amount disbursal.
A cash loan app has a systematic application process that leads to quick approval with minimal documentation. Quick approval implies disbursement of the loan amount into the borrower’s account within minutes or hours, at most.
Repayment Process
Traditional lending does not take the applicant’s needs into consideration. They always offer fixed repayment schedules and terms that feel restricting or stressful. An EMI loan app, on the other hand, allows the borrower to customize their repayment schedule as per their flexibility.
Customer Assistance
When lending from a traditional financial institution, the borrower has to visit the branch physically every time they require any sort of assistance. This tends to get very time-consuming and tiresome after a certain period of time. On the other hand, an instant loan app offers round-the-clock assistance through chats, calls, and emails.
The public has significantly shifted towards acquiring loans online through various apps in recent times. With increased comfort, an easy application process, quick disbursals, and 24/7 customer assistance, loan apps have become the go-to choice for anyone looking for financial support. If you also wish to fulfill your financial requirements via a loan app, then just search ‘personal loan online app’ on Google. Now select the app that offers exactly what you’re looking for. You’re now all set to apply for an online loan!
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