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Are Fintech Lending companies better than Banks?


If you’re applying for a quick personal loan, you’ve probably faced the dichotomy of choosing between banks and Fintechs. While we are all familiar with banks, Fintechs are relatively new entrants in the Financial Services Industry of India. So, which one among the two is better and how do they differ from each other? Let’s find out!

Purpose Of Fintech Firms and Banks

Perhaps the most pertinent difference between a traditional lending institution and Fintech firm lies in their purpose. While a Fintech firm is designed to make loan accessible to the disadvantaged sections of the society, banks do not have any similar goal. They focus on offering credit to a select-few once they meet all eligibility parameters.

Next, banks are driven by the goal of reducing risk while Fintech companies are focused on improving the customer experience.  As opposed Fintechs, most banks have a lengthy application process (for loans) and they aren’t concerned about hassles borne by customers. 

Why Have Fintechs Outshined Banks?

Owing to the large-scale transactions on leading Fintech lending platforms, it is safe to assume that this industry is steadily outshining banks in various departments. Fintechs have a core premise of offering excellent ‘user experience’ and this is one of the many areas where banks are lagging behind. 

Thanks to Fintechs, a borrower can now be constantly up to date about his loan’s application status. Most lending sites have a dedicated feature, whereby the borrower can see whether their application is accepted or rejected. The best part: the status is usually updated in a couple of hours.

Fintechs also fare better than banks when it comes to communication. Unlike bank representatives who call for long drawn processes and are often reluctant to address customer queries, the representatives of Fintech platforms are always there to help you. Once you raise a query/doubt, they will not only address it but also ensure that your further doubts are resolved immediately. 

Powered by technology, Fintech lenders also disburse the loan amount quick. While banks would take weeks or months to approve and finally send the amount, Fintech lenders do this in an instant. Lenders like Qbera, take 24 hours to 72 hours to finally disburse the amount. The process is quick, and you are duly intimated of every step.

Finally, most Fintech lenders also offer loans to low income individuals. Banks only process the applications of individuals with a take-home salary of Rs 30,000 per month. Fintech lending platforms, on the other hand, offer this facility to borrowers with a net monthly income of Rs 20,000.

Bottom Line

While banks have been trusted since many decades, over the last few years, Fintechs have have changed the game. Owing to their simple processes and wide accessibility, most individuals are counting on them while applying for an instant loan. If you fall in the same group and need some quick cash right away, consult our experts at Qbera. We offer quick personal loans at rates as low as 11.99% p.a.


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