Loan apps: How has it made lending easy?

Let us witness it – we all are hooked to the great convenience that mobile applications endow. Just a few clicks, & you can easily book a luxurious vacation or order a week’s groceries! Also, when it is about business, mobile traffic today has outpaced desktop traffic by a huge margin. The advent of various mobile technologies into the lending space is comparatively new, and however, given its extensive adoption, it appears like a preferable inclusion. Modern non-banking companies are forming mobile applications into solutions to increase their customer accessibility convenience as well as guarantee customer satisfaction. Customarily, loan application and review used to be a very cumbersome process. However, with the technology of magic, the process appears to have changed drastically. Loan applicants today can avail of loans without any paper-heavy documentation or application procedure, delays, or any compromise on privacy through loan apps like Cashe.

Why is having loan apps good for customers?

·       Loan apps can furnish emergency funding to customers

Through lending applications, loan seekers can enjoy the clock loan facility, which makes instant lending easy. Seekers know where they should tap and when they require resources in distress, thanks to the loan apps that digital platforms integrate with the lending ecosystem. Such loan apps are helpful for loan seekers who do not want to ask for the door to door help from friends and family.

·       Loan apps provide time-saving, fast-paced borrowing

Applying for a loan with the financial bodies offline is a time-consuming process. There is a requirement to approach the institution during office hours, which clashes with the work schedule of the applicant. With loan apps, applicants do not require to visit the lending institution physically, which saves time. Applicants can log on to the loan app at any time without having to compromise on their work schedule.

·       Loan apps can act as instant credit to applicants

Given the fast-paced characteristic, loan apps omit the requirement for the physical application procedure. Additionally, the decision process of the loan is instantly taken. Once the applicant includes his relevant details and credentials, the application algorithm reviews the applicant security and credit score. It means if the applicant is looking for instant funding to mitigate the emergency needs, he can avail of the loan proceeds faster than by opting for the time-consuming route of applying physically.

·       Loan apps permit applicants to keep track of their loan and status 24X7

Logging into the loan app makes it simple for the applicants to keep thorough track of their borrowing. They have a flawless user experience, which makes it easy to check the debt outstanding, the amount borrowed and the upcoming repayment dates. Note that there are several options to know the automated notifications of the amount and payment dates.

How are loan apps making credit simpler in India?

It is amongst the well-known facts that financial inclusion is a major problem. For several years, banks have been the go-to vertical for all customers in case of loan need. They for long have remained a dominating player in the market, may it be for a personal loan, car loan, home loan or any other credit option. However, availing of credit options from banks need a tedious amount of documentation and effort on the applicant’s part. Meeting all the qualifications required for the loan approval is not feasible for all. As an outcome, a vast credit gap was created in the Indian lending market.

Today, we reside in a digital platform where digitization is the new norm of working, and the Indian financial sector has not been untouched by the digital aspect. In recent years, the increasing penetration of technology and the internet has opened new doors for many top-notch possibilities in the market. Digital lenders instantly sieged the vast opportunities owing to the advent of the Indian Fintech and are offering instant funds to those in requirement.

Applicant friendly approach

On the aspect of providing a friendly approach, instant loan applications have completely outdone the traditional counterpart. Lenders usually adopt rigid lending procedures and policies that have little or no regard for applicants – particularly those who require small loans. Digital lending platforms, on the other hand, are effectively bridging the credit gap through user linked policies formed to cater for the requirements of applicants.

Lowering the documentation of loan approval

Minimal documentation is one of the major benefits of instant loan verticals. As the whole procedure takes place online, loans are even approved and sanctioned more quickly than banks. Moreover, the e KYC introduction has made it convenient for the applicants/borrowers to get their demographic and identity details verified and get their credit options approved. For example, digital lending podiums like Cashe just need the applicant’s PAN card and identity proof like voter ID, Aadhaar card, passport or driving license.

Simply available to applicants

Digital lending has completely been able to capitalize on the rising penetration of technology, smartphones, and the internet in India. Instant loan applications operate through smartphones or online portals, which enables applicants to easily access the credit funds without any requirement to approach the bank several times for the loan. Take Cashe, for instance, and the instant loan application can disburse funds in hours to the applicant once the loan is approved. It also is advantageous for the lenders as they do not require to bear any cost of operating and establishing the point of service.

Leveraging the data

Traditional lending podiums require validation of various factors that impact the applicant’s loan application like a credit profile, tax returns, past loans as well as repayments, bank account statements etc. The whole evaluation can take months or weeks, based on the individual’s profile. But digitization has become a game-changer in such aspects.

Future prospect for loan apps

Instant loan apps have come across to be an instrumental aspect for meeting the wide credit gap. However, to completely become and stay relevant, such loan apps will require continuously innovating as well as deploying recent technologies. Moreover, with the rising adoption, digital lending platforms require a flexible approach for forming as well as satisfying the requirements of the users.

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