Today, people have numerous options to avail personal loans. With the advent of the internet, it has become easier to get a loan from the comforts of home. Now, not everyone goes to banks, fills out application forms and waits in queues. With just your phone and internet, you can now apply for a loan anytime, anywhere.
That’s why loan apps are becoming extremely popular and are preferred over traditional banks. These apps are quick, simple and require very little paperwork.
In this blog, let’s understand the digital lending advantages, compare loan apps vs traditional banks and learn why people choose loan apps over banks.
Advantages of Loan Apps
Loan apps offer numerous benefits, and here are some of the reasons why people choose loan apps over banks:
Faster Process
There is no doubt that loan apps are quicker than traditional banks. You do not need to visit any bank branch, and you can apply in minutes from anywhere, anytime. With CASHe, you can also get your loan approved within a few minutes.
Minimal Documentation for App Loans
With loan apps, you do not need to worry about carrying documents. Just log into the app and upload the basic documents to get your loan approved. With CASHe, there is zero paperwork, and all you need to do is upload documents like PAN card, Aadhaar card, and bank details.
No-Collateral Loans Through Apps
When you avail loans from banks, you often need to pledge some assets. With loan apps, there is no such headache. Most loan apps give no-collateral loans, and hence, you do not need to provide anything as security.
Apply From Anywhere, Anytime
For app loans, you do not need to go anywhere. You can apply for a loan at your convenience. All you need is a phone and a decent internet connection.
Loans Even for Low-Income Earners
The best part about loan apps is that they also offer loans to those with low income, low credit score or no credit history. However, banks usually ask for a high salary or a perfect credit score.
Flexible Amounts and Repayment Time
Whether you need ₹1,000 for 1 month or ₹2 lakh for 2 years, these loan apps offer flexibility. You can choose how much money you want and how long you need to repay it.
Perfect for Millennials
Today, young people are more aware of tech, and they always look forward to convenience and comfort. That’s why millennials prefer loan apps over banks. These apps, as mentioned, are quick, digital and don’t need long paperwork.
Loan Apps vs Traditional Banks
| Feature | Loan Apps | Traditional Banks |
|---|---|---|
| Process | Completely Online | Mostly Offline |
| Documentation | Minimal paperwork – Only basic documents like an Aadhaar Card are required | A lot of paperwork |
| Approval Time | Instant to a few hours | A few days to a few weeks |
| Eligibility Criteria | Flexible | Strict |
| Interest Rates | May be higher | Often lower than online apps |
| Collateral | No collateral required | May require collateral |
| Convenience | Apply anywhere, anytime | Apply only during banking hours |
Potential Drawbacks of Loan Apps
Undoubtedly, loan apps offer numerous benefits. However, they also come with several drawbacks. So, here are a few things you should be aware of:
Interest Rates Can Be Higher
Loan apps sometimes charge higher interest than banks. So always check the rate before applying.
Borrowing Too Much
As it is easy to get a loan from a loan app, some people take more than they can handle. Hence, always borrow only what you really need.
Extra Charges
Some apps may charge prepayment fees or late payment penalties.
Privacy Issues
Though RBI-registered apps are safe to use, people still have privacy concerns using them. So, make sure you download trusted apps like CASHe and do not give access to contacts or messages unless it’s really needed.
Conclusion
This is why loan apps are preferred over traditional banks. With these apps, you no longer have long queues or piles of documents to submit. Just simple steps and a few clicks to get the loan right from your phone.
Now, download the CASHe app and avail instant personal loans of up to ₹3 lakhs without any collateral. CASHe offers quick loans at competitive interest rates. Apply online and get your loan approved within minutes.
