FatakPay - Best Instant Personal Loan App

The banking and financial services industry has come a long way in offering loans and other financial products. Unlike traditional loan processes that used to take weeks or months to complete, the digitization of the financial industry has made things much easier. There are hundreds of banks and non-banking financial companies offering personal loans today. Individuals can apply for loans anytime and anywhere, no matter how small or big loan they are looking for.

Apart from the emergence of digital loan apps, there are various other trends that are shaping the future of online loan applications. Let us discuss some of the most important ones in this blog:

1. Digital Loan Platforms

With a continuous rise in the usage of the internet and smartphones, the number of online loan applications is also increasing. People no longer prefer visiting banks and standing in long queues to submit their loan applications.

Various new digital loan platforms are emerging, making the entire lending process much easier and accessible for every individual. Online loan apps and websites have gained significant popularity in recent years. As per a report, over two-thirds of people applied for loans either fully or partially online in the last two years.

Online loan platforms like FatakPay use advanced technologies to determine the creditworthiness of individuals and offer them loans accordingly. For borrowers, the entire process has been streamlined, providing them with the flexibility to apply for loans anywhere and at any time.

2. Embedded Financing Options

The best thing about online personal loans today is that they come with financing options. Lenders these days allow easy EMI conversion. Borrowers can easily select the EMI tenure, monthly installment amount, etc, as per their repayment capacity. You don’t have to look for financing services separately. It is not just true for personal loans but also for financial companies offering BNPL (Buy Now Pay Later) options.

If you want to purchase a product on EMIs, you can easily select the EMI option while checking out. Various online lenders have partnered with different e-commerce platforms to give customers the ‘Buy Now Pay Later’ option. This integration of financial services into other products or services is another innovative trend in the digital loan industry.

3. Spend Based Lending

The concept of spend-based lending has also become highly popular in recent decades. Individuals now have more freedom to repay loans based on their purpose of borrowing funds. For example, those who take loans to spend on their business may get an option to repay on the basis of revenue generated from that business. With this, borrowers get higher flexibility as they are allowed to repay the advance Salary loan based on where they have used the borrowed funds.

Apart from this, the loan apps offering monthly credit lines are another example of spend-based lending. Borrowers can get a fixed monthly credit limit that they are free to use as per their needs. FatakPay is one of the perfect examples of online loan apps that also offer a monthly credit limit. Users may or may not use this monthly credit based on their requirements. The best thing about such monthly credit lines is that no interest is chargeable if repayments are done timely.

4. Personalized Experiences

Banks and NBFCs (Non-Banking Financial Institutions) are now using advanced technologies like data analytics and machine learning to understand borrowers’ individual needs and offer loans accordingly. Lenders can analyze users’ spending habits, credit history, income, and other factors to decide on the most suitable loan options for them.

More than 70% of banking institutions are now investing in offering personalized experiences to users. The same goes for NBFCs like FatakPay as well. These lenders properly analyze borrower’s needs, preferences, and goals, before offering a loan or credit line.

5. Automation and Efficiency

With the evolution of modern technologies like AI and Machine Learning, automation has become a new trend in the financial sector as well. Be it decision-making, loan approval, disbursal, or anything else, automation has made lending processes much faster for banks and financial institutions.

They can use AI algorithms to analyze creditworthiness and verify all the information instead of doing it manually. It saves a lot of their time and effort. This further leads to improved efficiency and reduced human error in the lending process.

Even borrowers can benefit from automation as they get the option to automate repayments. This eliminates the hassle of setting repayment reminders and getting a late fee penalty on missing payments.

Bottom Line

The increasing popularity of online loan apps, personalized experiences, automation with AI, etc, are some of the emerging trends in the financial services industry. The way borrowers apply for loans, as well as the way lenders analyze their applications, has changed to a great extent. The processes are much faster and more efficient today. Moreover, borrowers have a wider range of options to choose from.

The top personal loan apps like FatakPay not only offer loans but also provide monthly credit limits to users, which they can utilize as per their needs. Therefore, there’s nothing wrong in saying that borrowers as well as lenders who are aware of these emerging trends can make the most out of the online loans.

The evolution of digital short-term loan apps has made lending much more convenient and easily accessible for everyone. You no longer have to stand in long queues in order to submit your loan application. Also, you don’t have to wait for days or weeks to get the loan amount disbursed into your account. With online short-term loan apps, these processes are now much faster and hassle-free.

However, like every coin has two sides, these short-term loan apps also have their own advantages and disadvantages. It is true that the benefits of these loan apps are more than their drawbacks. However, before you apply for a loan any any short-term loan app, you must be aware of both the advantages and disadvantages. Let us discuss the same in detail through this article:

Advantages of Short-Term Loan Apps

Below are some of the pros of instant online personal loan apps:

1. Easy to Access

The online short-term loan apps are easily accessible as anyone can access them anytime using their mobile devices. Rather than offline loans that require you to be present at the bank or the financial company’s branch, these short-term loan apps make the entire lending process digital. You can apply for loans and get approved from the comfort of your home.

2. Flexibility

Short-term loan apps offer a higher flexibility compared to traditional offline loans. With most of these apps, users get to choose the loan amount, EMIs, and repayment tenures at their convenience. Also, some best short-term loan apps like FatakPay offer monthly credit lines, allowing users to spend only the required amount. All these features make digital loan apps much more flexible and hence convenient for users.

3. Hassle-Free Application Process

Unlike offline personal loans, the application process for digital loans is much easier and hassle-free. You can easily sign up for the app, enter a few basic details on your mobile, upload basic documents, and get done. The need for lengthy applications and unnecessary documentation has been eliminated by these apps.

4. Less Strict Eligibility Requirements

The eligibility criteria for short-term online loans are less strict than those for the offline loans offered by loans and larger financial companies. Banks require you to have a good credit score, preferably above 700 in order to approve your loan application. Apart from this, there are several other eligibility requirements that you need to fulfill.

But that is not the case with digital loan apps. Even those with low credit scores can get short-term loans from these apps. FatakPay, which is a reputed short term loan app in India, is known for offering loans and credit lines with minimal documentation and minimal credit score requirements.

5. Quick Disbursal

Online short-term loan apps quickly process your loan application and approve it within just a few minutes. If all your details are correct and you fit the basic criteria, your loan will be disbursed within just 10-15 minutes with instant loan apps like FatakPay. This can take up to a few weeks in the case of traditional offline loans.

Disadvantages of Short-Term Loan Apps

Now that you have understood the benefits of digital personal loan apps, let us discuss their downsides:

1. Smaller Amounts

Short-term loan apps are a good choice for those who are looking for small amounts to manage their daily or monthly expenses in emergency situations. You can apply for these small loans in case of a medical emergency, unplanned expense, basic home renovation, etc. These might not be suitable for you if you are looking for bigger loan amounts.

2. Potential for Overspending

There is always a risk of overspending with short-term loan apps that offer monthly credit lines. If you have a high monthly credit line, you may end up overspending at times. Therefore, it becomes essential to use these apps carefully and responsibly. If you are responsible enough to stop spending when it goes beyond your repayment capacity, there is nothing wrong with using these apps.

Conclusion

As you can clearly see, there are more advantages to using short-term loan apps than disadvantages. The only considerable drawback is that these apps usually approve smaller loan amounts. If that is what you need, you can undoubtedly go for a digital personal loan. But make sure to do some research about the app’s fees & charges and terms & conditions. Some loan apps can charge unnecessarily high processing fees and interest rates.