There comes a time in every person’s life when they may require a large amount of money for an urgent need, or dream actualisation. You might be in a similar situation at the moment, without access to a large fund. You could apply for a personal loan using a loan app.

What is a personal loan?

It is an unsecured loan product approved against the applicant’s salary, age, repayment ability and credit score. The loan does not require any physical collateral (unlike other loans like home or car loans) and has a higher rate of interest than secured loans. However, the rate of interest is competitive across leading banks, NBFCs and loan apps.

What is a loan app?

As the term suggests, it is an app that offers a digital pathway to getting a loan. Leading NBFCs in India have smartphone apps that are free to download from the Google Play Store and Apple app store. The app’s UI allows a fully digital process, from documentation to loan disbursal. You can repay the instant personal loan through an EMI on the same date every month.

How can you get a personal loan using an app?

The app fronts an RBI-registered NBFC, and offers a fully digital interface for the loan application and disbursal. All terms and conditions for the loan remain the same as followed by the NBFC, the only difference being that you can apply for the instant personal loan using the smartphone app. There is no need to submit paperwork to the NBFC’s branch office or collect the loan cheque in person.

How to apply for the instant personal loan

  • That’s easy – download the app and set it up in a few easy steps. Enter the OTP sent on your SMS, input your email ID and bank details, and get started.
  • Browse the app’s different loan products. The personal loan section will have all the relevant information you need to understand the product. If you have any doubts, you can browse the FAQs for more details.
  • Check your loan eligibility, which is computed basis your income. The loan amount you are eligible to get is a percentage of your monthly take home salary. The app’s online calculator will help you crunch the numbers.
  • Look up the list of required documents. Self-attest them before uploading.
  • Once the application is submitted, await the loan approval. The app takes some time to verify your personal and financial credentials (address, credit score, income, repayment history). Once approved, the loan is disbursed to your account in minutes.
  • Withdraw the loan money from your account and use it for your requirement. Repay the loan in equated instalments every month.

Conclusion Reputed personal loan apps are safe to use, with easy documentation and application processes. They save the time and effort you would spend in applying to a bank for a personal loan.

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