Why You Should Have a Loan App Installed in Your Smartphone

Smartphones have made the world a smaller place. What can’t you do with this device? Be it connecting your near and dear ones, accessing information, guiding you in an unknown route, or keeping things organized. And now you can even get an instant loan! Yes, you heard it right. Financial matters need our immediate attention. Else, things can go haywire. But now you can download and install a loan app on your cell phone and apply for a loan instantly from your home. So, know why it’s good to possess such an application.

Zero application fees

When a person applies for a quick personal loan, the lender will ask him to pay a fee for the whole process. In most cases, it’s not much, but as you will be approaching various lenders, the fees might sum up to a considerable amount. When you apply for a loan through an app, there’s zero application fee. It’s completely free for the users.

Approval without any paper

While applying for a loan in a conventional way, the borrower needs to submit all the relevant papers, after which the approval process starts. On the contrary, when applying for an online loan, all you have to do is upload the necessary documents. Thus, the whole process becomes paperless. 

A loan without collateral

These instant personal loans are all unsecured. That’s why the borrower does not have to deposit security or submit collateral. 

Quick approval, as well as disbursal

When your loan gets sanctioned using an instant loan app, everything happens within a matter of moments. Sometimes it only takes a few minutes to a couple of hours to get the loan approved, and as soon as it happens, your account gets credited with the loan amount.

Affordable interest rates

Usually, personal loans come at high-interest rates. But depending on one’s credit score, interest rates may vary. Even tenure affects the rates. It starts from 9% (and above). The borrower also gets a flexible period for settling the loan amount. 

Can customize the amount

The loan applicant can choose the payable amount according to the requirement, provided it falls within the range the lender has specified.  

Can control the disbursed amount

A borrower’s debt-to-income (DTI) ratio is considered while determining the total payable loan amount. Though it indicates your present financial status and the ability to repay the money, the DTI can be misleading too. Sometimes it becomes difficult to find out a borrower’s actual DTI. You might end up paying a greater interest than you should actually do. But when you have used an app to get the loan, you have control over the disbursed amounts. It gives you the freedom to adjust them in accordance with your current financial situation. Thus, it provides you with a clear picture of how much you have paid and how much you still need to pay. 

Conclusion

App-based instant personal loans are gaining momentum as salaried and self-employed people find it to be the best way to avail money when needed.