A couple of years back, traditional lending institutions like banks would be our top option for getting a loan. But with the advent of Fintechs, the Indian lending landscape has been successfully reshaped. Gone are the days when you’d run from post to pillar to get your personal loan approved. With these alternative lenders in the market, you can get your loan in minutes from the comfort of your homes. But how do these institutions work and why are people choosing them over banks? Are they even safe? Let’s find out!
What Are Fintechs?
As evident from their name, Fintechs are the lending platforms that leverage technology to offer financing options to the masses. Over the last couple of years, most Fintechs have evolved as your one-stop-shop for getting the best offers on loans and credit cards. Like banks, they offer loans ranging up to hefty amounts. The best part: they get it done in minutes!
Yes, as opposed to banks that would take several days to get your application assessed and eventually approved, Fintech lending platforms approve your loan in minutes. What’s more, their instant personal loans are disbursed in as less as 1 to 5 days. If you choose a platform like Qbera, you can get it even faster!
What Makes Them Better Than Banks?
Getting a personal loan from banks is certainly not simple. Not only does it involve plenty of documentation, but the entire process from visiting the bank, attesting the documents, and waiting for the approval is stressful to say the least!
Fintechs are an edge ahead as they’ve successfully simplified lending. When you choose a fintech lender, you won’t have to affix signatures, nor will you drown in paperwork. Instead, you’ll simply have to upload the scanned copies of the required documents. Yes, the process is as simple as it sounds.
The calls, follow-ups, thousands of signatures, paperwork, unnecessary delays, constant ambiguity and the hollow promises of agents are no longer an issue when you choose a Fintech platform.
Also, banks do not offer instant personal loans to individuals working in C or D grade companies. But since Fintechs do not have any such norm, getting a loan on these platforms is much easier.
What Is The Eligibility Criteria?
The eligibility criteria in Fintechs is relatively relaxed when compared to banks. Unlike banks that require you to have a credit score of at least 700 and a monthly salary of Rs 30,000, Fintech lenders make credit more accessible to the masses.
At Qbera, you can get a personal loan with a credit score of 600 or more, and a net monthly salary of Rs 20,000. The documentation requirement is also bare minimum. You’ll just need a copy of your PAN card, aadhar card, salary receipts (for the last three months), and bank receipts to get your loan approved.
Unlike banks, you wouldn’t need copies of your tax receipts as a part of the process.