Earlier, for urgent cash loans, the first and obvious choice was private money lenders. Private moneylenders usually ask for minimal documents but charge hefty interests. They were, however, a readily available source of funds during emergencies. With the arrival of Fintech, however, urgent loans are becoming more easily accessible to individuals and households. Present day lending startups, with their advanced technological processes, have emerged as viable alternatives to private money lenders. The best thing is that they offer loans at affordable interest rates, their process is transparent, and along with minimal paperwork, they’ve allowed for quick and easy disbursal of loans.
The personal loan space had witnessed a slowdown when the economy slowed. But in the changing economic scenario, lending startups have led the revival of the personal loan sector. Banks are typically wary of unsecured loans, and thus have stringent protocols and cumbersome paperwork. The digital lending platform led by Fintechs like Qbera use advanced risk-evaluation algorithms to ascertain the creditworthiness of individuals.
The advantages of opting for a Fintech when in need of urgent cash loans in India –
- Minimal Documentation
When approaching a bank for a loan, be armed with all possible documents and multiple copies of the same. However, with Fintech companies, the process is digitized – you can just mail the necessary documents or use the secured netbanking platforms. The documentation required is also limited to PAN card, Aadhar card, photographs and cheque leaves.
- Quick turnaround time
Traditionally banks take about a week or more to consider your application for a personal loan. This time gap is huge if the requirement urgent. The turnaround time is as less as 24-48 hours for a Fintech like Qbera.
- Manageable interest rate and tenure
Qbera offers interest rates starting at 11.99% and a long tenure that ranges up to 5 years. This is particularly important in maintaining an ideal monthly payout. The EMIs should be such that the monthly family budget is not stressed.
- Lenient eligibility criteria
Banks have stringent criteria because these are unsecured loans. Fintechs, however, have a very lenient list of criteria. The applicant must be salaried, having a monthly net salary of Rs 18,000 along with a CIBIL score of 600 and in the age group of 23-55 years to be eligible for a cash loan from Qbera.
- Flexible usage
Personal loans enjoy a high flexibility range as far as end usage is concerned. You can fund education or marriage, go in for home renovations or buy a used car or simply use the amount to fund a luxurious vacation. There are no questions asked as to the use of funds as long as it’s a legitimate usage.
- Digital experience
The loan application is almost entirely digital, giving the customers a never before digital experience and ease of usage.
Being an unsecured loan, there are many strict checks in place and very often the application is rejected by financial institutions simply because you have failed in these checks. Fintechs are an excellent option in such scenarios. Here are some advantages of opting for Fintech lending startups against traditional banking institutions.
- Low CIBIL
CIBIL forms the backbone of the lending industry in determining the credibility of a borrower. While banks prefer a score of 750 and more, a marginally low score of 600 is considered by Qbera.
- Low income
A borrower is expected to pay the EMIs from the monthly salary and so people having low-income levels face trouble in securing a loan from banks. Qbera, however, considers such individuals.
- Employees of unlisted companies
Each institute has its list of companies and may reject applications from employees of unlisted companies. Fintechs like Qbera do not discriminate on this factor.
- Staying in shared accommodation
Individuals in shared accommodations find it difficult to avail a personal loan, with the lack of permanency with shared accommodations being the determining factor. Fintechs rely on social and economic standings, besides a bunch of other parameters and allow individuals staying in shared accommodations to qualify as well.