We live in a world where everything from quick cooking noodles and online food delivery to eCommerce shopping and online banking, happens on our fingertips with the help of the mobile apps on our phone. With everything falling under the ‘instant’ bandwagon, it is not surprising that patrons are looking for easy access to loans, without the hassle of too much paperwork or wait time.
Instant loan apps are quickly becoming a convenient way to arrange for funds without having to wait in line at the bank, file endless documents with financial institutions or worse, have an embarrassing conversation concerning the borrowing of money from family or friends.
In recent years, instant loan apps are becoming increasingly popular among young professionals and students looking to borrow short amounts of money. While instant loan apps were first introduced to offer consumer durable loans, the funds were never deposited into the borrower’s account.
These apps created a loan account when the borrower would avail of a loan to purchase home appliances like televisions, refrigerators, dishwashers etc. But instant loan apps have come a long way since then and are now evolving to offer funds directly into the borrower’s bank account.
This proves to be quite helpful as there are times when our expenses do not fall under the predefined specifications for borrowing money.
Let’s understand why it is a good idea to opt for instant loans via mobile apps.
Quick approvals and quick disbursal
Because they are designed to be instant, an instant loan app will generally process your loan application in under 5 minutes. All you have to do is download an instant loan mobile app, log in using your social sign on (SSO) credentials and fill in minimal details to apply for your instant personal loan. It will only take a few seconds for the app to determine your eligibility for borrowing funds.
A few checks and verifications is all it takes for the app to approve your personal loan request and create your loan account. The amount you wish to borrow is then deposited into your account between 24 to 48 hours. Such a short timeline for disbursing a loan gives you the power to pack your bags and hop on an airplane for an impromptu trip with family and friends.
What’s more, some instant loan apps like mPokket offer you the convenience of depositing money in your PayTM account instead of your bank account so that you are ready to start spending.
The world is rapidly making the switch to digital solutions and instant loan apps are just what we need for quick and paperless borrowing. Say goodbye to standing in long queues, wait for a relationship manager or loan representative at the bank to explain your options or furnish dozens of application forms and submit another dozen copies for verifying your identity.
With instant personal loan apps, you can go paperless and manage all your borrowed funds without so much as a single sheet of paper wasted.
Flexible repayment options
Unlike banks and financial institutions that insist on the repayment of funds as per a rigid schedule, failing which, your credit score is likely to take a hit, instant personal loan apps offer greater flexibility options for repayment of funds as the principal amount is generally lower. Instant loan apps generally offer flexible payment tenures, sometimes upto 36 months and an option to repay as per your convenience.
Lower thresholds for principal amount
Most personal loans from banking and financial institutions have a specific starting threshold, usually starting at ₹25,000. But sometimes we don’t need to borrow an amount as high as ₹25,000. Let’s say we need to borrow just ₹10,000 – while we can apply for a personal loan from the bank, because of its minimum loan amount, we will end up paying interest on a larger principal amount than what we need. Instant loan apps like mPokket allows you to apply for an instant personal loan starting at ₹500.
Low rates of interest
Personal loans are known to have the highest interest rates after credit cards. Starting anywhere from 10%, a personal loan can prove to be quite expensive, especially when you want to avail of a lower loan amount. Instant loan apps offer interest rates starting at (mention interest rate). This means the interest won’t cut a hole in your pocket.
Perfect for students and young professionals
The fact that instant personal loan apps offer smaller loan amounts with flexible repayment plans at considerably lower rates of interest, they are highly lucrative among students and young professionals.
While people in their 30’s are likely to opt for larger loan amounts because of higher expenses, people from early to mid twenties have smaller expenses like paying for trips, bike repairs, an unexpectedly large cell phone bill etc.
It is impractical to apply for a large personal loan from a banking or financial institution in such a case but applying for a personal loan from an instant loan app is not only quick and convenient it is also affordable for students and young professionals.
Is an instant loan app the right choice for me?
An instant loan app could be just what you need if you are a student or a young professional or anyone in your late teens or twenties. Instant personal loans applications can be easily completed online on the instant loan app and most approvals usually take less than five minutes.
Disbursal of such loans can usually take a day or two, so if you are a student or a young professional and have unexpected expenses like an upcoming trip with friends, or extra coaching lessons at your college or even just an indulgent purchase for your birthday – you can do so without worry. Because of its low rate of interest, you don’t have to borrow money from family or friends.
With instant loan apps like mPokket, it’s like you have a friend and a financial institution clubbed together in your pocket.