Friday, September 1st, 2017
Short Term Payday Loans vs Personal Micro Loans in India
The Payday loan market in India.
In India, payday loans have created an entirely new market, with a host of start-ups offering quick cash advances to the young and aspirant millennial, whose monthly income is between Rs 20,000 – Rs 35,000. Payday loans are linked to the customer’s next pay cheque and can be taken for 1-30 days at sky-high interest rates – as high as 30%-40% per day for a 3-day loan. Demonetization and the cash crunch had led many to payday lenders – to meet their personal cash emergencies. The payday loan market in India, currently estimated at $10.27 billion, is likely to reach $14 billion by the end of 2017, reported a recent TOI news.
Although getting a payday loan isn’t a tough task, one must be wary of the potential pitfalls of a payday loan. A payday loan debt cycle is not only expensive in terms of fees and high-interest rates, it can pose serious debt problems if you do not have cash when the loan matures. As a promise to pay the debt, a borrower gives an IOU or a promissory note to the payday institution, failing which, the loan is renewed at a higher interest rate, plus fees. Payday loans are small unsecured loans up to 50,000 and the lender usually secures the loan by taking a post-dated cheque for the loan amount from the borrower. The payday loan marketplace has e-lenders who automate the loan price in order to reduce the loan cycle time. However, payday loans should only be considered when there aren’t other ways to get money.
Short term micro loans from CASHe.
Unlike payday loans, short-term micro loans at CASHe are not linked to the customer’s salary date. The loan amount is between Rs 5000 - Rs 50000 and such micro loans are given at interest rates of 17%-22% for a 15-day or 30-day tenure. CASHe has partnered with India’s leading financial marketplace, Paisabazaar, as well as savings destination for shopping lovers, Couponduniya - to better serve its mutual customers base through the partnership.
In addition, you can choose a short-term vacation loan from CASHe and book your travel package or you can avail a personal micro loan from CASHe to buy an electronic good of your choice electronically. You can particularly opt for an instant cash loan to meet any financial emergency right from your phone. The entire personal loan cycle is completed via the CASHe app without any hassles of paper work. All you need to do is register on the CASHe app within your phone and then upload self-attested copies of your identity and address proof documents, latest salary slip, bank account statement, and PAN. CASHe empowers you with a personal loan credit in minutes!
On the contrary, getting a personal loan from a traditional bank can be a lengthy procedure owing to paper work and approvals that are subject to credit checks. Also, banks do not lend small money (e.g. Rs 5000) for a short tenure (e.g. a 15-day loan). Therefore, if you need to borrow Rs 5000 for a 15-day tenure, an alternative lender is the best choice. For the millennial group, a personal micro loan from an alternative lender is a good way to finance a weekend getaway or pay an unexpected bill.
What are you waiting for? Download the CASHe app on your smart phone today to learn more about CASHe, your trusted provider of instant personal loans.