Choosing the right personal loan app can feel like a bit of a task with so many options out there. Whether you are looking for fast approval, low-interest rates, or merely the convenience of applying from your phone, picking the right app for your needs is essential.
What to check when selecting a personal loan app
1. Interest Rates and Processing FeesThe first and most crucial step while applying for a personal loan via an app is to compare interest rates across multiple platforms. There are times when some apps may charge extremely high interest rates. It is also advisable to compare other hidden charges such as processing fees, prepayment charges and late payment penalties as well. Currently, you can get personal loans from some banks at as low as 9.50% p.a. However, do check the associated processing fees as well before making any decision.
2. Repayment Tenure
A flexible repayment option is an important factor when taking a personal loan. It helps you manage your finances better and lowers the risk of missing payments. You can adjust your EMIs to either pay off the loan faster with higher instalments or take longer with smaller monthly payments.
Repayment terms usually range from 3 months to 5 years, so check different personal loan apps to find the one that fits your financial situation.
Moneycontrol has partnered with seven lenders to offer fast, fully digital loans up to Rs 50 lakhs. The application process is simple: just enter your details, complete the KYC verification, and choose an EMI plan. Interest rates start as low as 10.5% per year, depending on your employment status.
3. Credible Personal Loan App
With the rise in online scams, it is important to choose a trusted and verified personal loan app that follows proper security protocols and is regulated by the Reserve Bank of India (RBI). Fake or unregulated apps can misuse your personal data or trap you with hidden charges.
Before choosing a personal loan app, read the terms and conditions carefully, check reviews and ratings and ensure the app uses secure encryption of your data.
4. Loan Disbursement Time
People usually apply for personal loans when they are in dire need of money. Selecting a quick loan could be futile if the app takes too long to process the loan. Reliable apps will deposit the approved loan money directly into your bank account within minutes or hours of approval.
5. Customer Support and After-Sales Service
Choosing an app with reliable customer service is crucial, especially when dealing with finances. No matter how smooth an app is, you may still face issues like delayed approval, wrong EMI deductions, or questions about repayments.
Find out if the app provides live chat, email, or call support, as well as how responsive they are. Read reviews to find out how others have rated their service after receiving a loan. A trustworthy app should be able to respond to your questions in a timely and competent manner.
Types of Personal Loan Apps
There are various types of apps that offer personal loans, each with its own unique features and benefits.
- Bank-backed apps, operated by traditional banks, are secure and trusted. They typically offer personal loans at competitive rates, making them a good option for existing bank customers.
- Non-banking financial companies (NBFCs) are another popular choice, known for fast processing and a wider approval range. They are ideal for both salaried and self-employed individuals.
Moneycontrol has teamed up with eight lenders to offer quick, 100% digital loans up to Rs 50 lakhs. The process is simple: enter your information, complete the KYC process, and choose an EMI term. Interest rates can start as low as 10.5% per year, depending on your employment status.
Conclusion
Choosing a personal loan app is not an easy task. From picking the right platform to understanding hidden charges, interest rates, loan terms, and eligibility criteria, there are several factors you need to consider before clicking 'Apply Now’.
As there are so many apps available that promise instant approval, one may neglect reading the terms and conditions carefully. A poor choice may result in excessive EMIs, problems with data security, or loan rejection.
Disclaimer
This piece/article was written by an external partner and does not reflect the work of Moneycontrol's editorial team. It may include references to products and services offered by Moneycontrol.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
