Instant Personal loan apps in India:
In the last post under the Money mantra series, I discussed “How to arrange quick funds in case of an Emergency (and when you don’t have Emergency Funds). One of the most emerging trends from the last few years has been opting for Instant Cash Loan or Personal Loan from Instant Personal Loan apps in India. The last 2 years have seen such a huge surge that multiple small and big firms are entering into the Instant money lending business. It seems like it has never been easier for borrowers to access credit with that ease.
Are you in dire need of cash? Banking processes can get lengthy and a loan from banks depends upon your credit rating, balance, and many other factors. Have you faced loan rejection (due to credit profiling) or is the loan requirement not huge? Or are you a college student or newly employed and need urgent cash? Then there are these personal loan apps in the Indian Financial sector, catering to these needs.
Apps like MoneyTap, Dhani, Paysense, Indialends, NIra, Early Salary, Kreditbee, and many more are catering to this segment in a very quick process.
Over these years more than 100 such Cash loan apps have emerged in India, and taking the services of Personal loan apps has become swifter than ever.
Things you should know before opting for a loan from Instant Personal Loan Apps:
1. Loan taking capacity:
If you are planning to take a loan, you need to evaluate your paying capacity. You need to have a robust portfolio with intact income sources so that you don’t find yourself burdened with debt.
2. Credentials of the NBFC backing these apps:
The apps are usually backed by NBFC’s (which are governed by RBI) and have tie-ups with banks for the disbursement of loans. The very first step to verify the credentials of the Personal loan apps:
- Check the NBFC’s backing it
- Research on the financial stability of these NBFC’s and banks
- Research if it is an authorized lender
3. Understand the whole process:
These apps approve loan amounts within a few minutes and you see the cash in your account or cash-in-hand (as preferred) within a few hours. Instead of being lured by this “quick loan”, read and understand in detail about the Interest rates being charged, ease of repayment, Penalties (in case you default) and other practices. Readout some trustworthy customer reviews on authentic review sites as a caution.
Don’t just fall for the first personal loan app you see.
4. Interest Rates:
Always compare the interest rates being charged and compare it with your preferred bank too. To be on a safer side, consider the worst-case scenario of delay/default in repayment and try to gauge the interest you would be charged then.
Here are some popular Instant personal loan apps (in no order):
Paysense offers instant Cash online for salaried professionals and self-employed individuals. They have partnered with India’s leading NBFC’s, like IIFL, Fullerton, and Northern Arc.
You can get an instant personal loan, ranging from Rs5000-Rs5lacs. Paysense offers an EMI calculator to help you calculate the EMI you will need to pay every month.
Dhani, more popularly known as the “Phone Se” loan app, is backed by Indiabulls Ventures. It has been one of the most preferred Instant cash loan apps in India.
You can get an instant personal loan, ranging from Rs1000 to Rs15lacs and if you are a Salaried or self-employed individual (aged 21 and above), you can avail of this loan facility. They promise instant loan disbursals within a few minutes once the verification has been done.
MoneyTap itself has a license to operate as NBFC, governed by RBI and they have tied up with multiple banks and NBFC’s. Here, you can get an instant personal loan, ranging from Rs3000-Rs5lacs. If you are a salaried or self-employed individual, earning a monthly salary of Rs20,000 and more, then you can avail Personal Loan from MoneyTap.
One of the best features of this app is “No-Usage, No-Interest”, in which you pay the interest only on the amount used from your total loan kitty. MoneyTap gives you a credit line upon downloading the app, which you can use as per your needs.
4. Early Salary:
Are you a salaried professional? Do you run out of cash in the middle of the month or at the month end? Are your salaries getting delayed? Then, Early Salary is a good choice to cover you till your payday. They have tied up with Northern Arc Capital NBFC.
You can get an instant personal loan, ranging from Rs1000-Rs2lacs, with flexible repayment tenure ranging from 90 days to – 12months.
NIRA is a new player in this money lending business in India. They have partnered with a federal bank (regulated with RBI). Just after downloading the app, you can find out if you are eligible for a loan (in 3 mins), basis which you are given a credit line. If you are a salaried individual, earning a monthly salary of Rs12,000 and working for a minimum of 6 months, then you can avail Personal Loan from NIRA.
You can get an instant personal loan, ranging from Rs5000-Rs1lacs. You can withdraw the amount basis your needs and repay in easy installments (3months – 12 months).
Though there are many Instant Personal loan apps, which can help you sail in your turbulent times, it can cause a lot of stress, in the cases of default. Hence, I would again suggest that you should borrow only if you need to, after exhausting all other options. To explore other options, when you need instant cash, check out this blogpost.