A personal loan might be the best resource to help you achieve your goals, whether you want to consolidate debt, fund a significant purchase, or make home improvements. Check out our best personal loan app ranking for 2023 to get started.
We live in an automated and technological environment. The same is evident in various economic sectors. It’s easy to search online and find an app connected to any product or service. Popular lending apps, our topic of discussion here, reflect this.
But before we talk about the best online loan apps, let’s understand what personal loans are and what their benefits are.
Personal Loans: Importance
Every person has different personal needs. Personal loans can come to your rescue for various purposes, including house remodeling, higher education, family vacations, wedding, etc. These loans are unsecured, meaning there is no collateral requirement.
The emergence of a digital India has greatly increased the availability of online services. In addition to conventional financial institutions, many more lending institutions and NBFCs have begun offering loans to the common people instantly. Forget about the lengthy waiting and processing times and the standard procedures you were used to following. Modern funding is significantly more streamlined and practical.
Benefits of Personal Loans
Personal loans provide a host of uses, such as their adaptability, accessibility, and simple application process. Listed below are some of the major benefits of personal loans.
#1 Quick Approval
In most circumstances, we mean within 24 hours!
A personal loan can be processed far shorter than a home loan, which typically takes 3–4 weeks. As a result, they are the best choice for handling urgent cash or payment needs. They are, therefore, the preferred option for taking care of your immediate cash or payment needs. In addition, lenders won’t have any trouble approving your personal loan application if you have a good credit history (CIBIL score of more than 750+).
#2 Collateral-free Loan
You can get a personal loan without security as they are unsecured loans. This makes obtaining a personal loan easier than other loans, such as a home or car loan. But as a borrower, you should be aware that because unsecured loans present a bigger risk to lenders, the interest rates are higher than secured loans.
#3 Flexibility
A personal loan can be beneficial regardless of the use, whether for an expensive purchase, a vacation, or a house renovation. Furthermore, unlike other loans, a personal loan can be used for various things. One of the factors contributing to personal loans’ growing popularity is their flexibility.
#4 Improves Credit Rating
If you have a low credit score or no credit history, getting affordable personal loans and repaying them on time is an excellent way to boost your credit score. Your credit score will improve as you make EMI payments with the pre-set interest rate on time.
#5 Minimal Documentation
One of their main benefits is that there are few documentation requirements for personal loans. Additionally, the application process is straightforward and designed for the consumer’s comfort.
5 Best Personal Loan Apps in India
Conventional lending institutions take time to process a personal loan application. Even their interest rates are higher compared to loan apps, at times. However, in the age of technology, you can quickly obtain a loan through loan apps.
Instant loan approval is a completely online process that requires no physical visits. Here is a list of the top five personal loan apps.
- Fullerton India InstaLoan App
- Paysense
- Moneytap
- IndiaLends
- Dhani
With only a quick KYC documents’ upload, anyone can access these personal loan apps that can be easily downloaded on a mobile device. All you need is to register on the app, upload your KYC documents, and apply for the loan.
Additionally, many of these portals offer direct account transfers, so you don’t need to collect the loan cheque physically. If you are eligible, the funds get credited to your bank account within a few hours after approval.
Consider the Following Before Applying for a Personal Loan
Now that you know some of the advantages of personal loans, keep reading for advice on selecting the best loan.
- Make sure the amount applied is within your repayment capacity.
- Make sure you understand all the terms and conditions before applying.
- Compare lenders’ interest rates and choose the most beneficial for you.
Bottom Line
If you’re looking for a personal loan in 2023, it’s important to know that there is always room for negotiation with the lenders, especially if your credit score is excellent (let’s say 800). Remember, NBFCs always prefer to give loans to people with a good source of consistent income, so they can repay them easily.
Obtaining personal loans can be difficult for those without a regular income and those with low credit scores or no credit history.
