Written by Rohit Garg
The end of the holiday season is always marked by impoverished wages due to the various expenses of purchases and gifts. This could prove problematic if one encounters an unfortunate or emergency expense. Although applying for a credit card is an option, it can sometimes be a tedious process.
Especially for the underserved sections of our society, who are often unable to access loans and financial products due to lack of capital and bank references. In such a case, personalized microloans are more suitable for small entities because they are easier to obtain.
The current operational models of banks and financial companies often fail to cover the various underbanked segments such as small vendors, hawkers, etc. which together form the vast perimeter of microenterprises in the SME ecosystem. A number of dedicated microfinance companies are leveraging AI and data science to design state-of-the-art lending algorithms. These algorithms help to accurately assess the loan history of individuals and provide immediate loans. People previously deprived of access to banking and financial services can now effortlessly acquire these monetary benefits. All you need is a smartphone and an internet connection.
The pioneering concepts of microfinance and microcredit devised by Muhammed Yunus, Nobel laureate of Bangladesh, economist and founder of Grameen Bank, are remarkably empowering the underserved sections of society. India, despite being one of the fastest growing economies in the world, still has a large population that is deprived of basic banking and financial services. These short term loan facilities are perfect for those aspiring to small and medium credit characteristics.
While these services allow small and micro business owners to access loans, insurance and investments that help their business grow; short term loans are also suitable for potential borrowers in the middle and low income customer segment who are looking for quick credit services.
They can now seamlessly receive a range of financial services from the comfort and convenience of their home after registering and logging into a fintech platform’s app.
There are currently a plethora of personal loan companies operating in the financial ecosystem. Customers who wish to avail of credit services should diligently choose their preferred lending company after carefully weighing the pros and cons. Different service providers offer a wide range of financial products and services and customers should select a product that suits their credit needs.
The rise of digital technology has made applying for a loan a simple and hassle-free process. Stop taking advantage of a loan hampered by paperwork and formalities. Nowadays, it is possible to take out a loan in minutes with minimal documentation. Customers can access a wide range of credit services without worrying about legal and procedural formalities. Flexible eligibility criteria for instant loans allow for easy and efficient access to credit.
People who are facing monetary crisis after spending lavishly during the holiday season and need an effective solution for their financial needs can benefit from the easy approval feature of short term loans. The instant loan application can easily help to meet the monetary concerns of people who are waiting for their next salary, as the loan approval process takes very little time. Along with this, the disbursement time is also very short in the case of short term loans. Users receive the credited money within hours of applying for the loan.
If that’s not all, these short-term instant credit suites also offer very easy and user-friendly payment options. Borrowers can make loan repayments through a finance company’s proprietary app in an easy and streamlined way. If a customer is unable to repay the credit for personal reasons, it can also be settled through flexible EMI options.
Taking repeated quick loans from finance companies and repaying them in a timely manner allows users to obtain improved credit scores which can be essential for securing larger loans in the future. With enhanced credit credentials, users can access greater credit services from lenders in minutes.
That said, instant credit and loan services are more suitable than credit cards for overseeing any emergency expenses. With credit cards, the possibility remains that a user’s purchasing power is limited to those who are compatible with the card. This severely limits a user’s purchasing potential by preventing them from accessing cash. On the other hand, new era instant loan apps transfer the money directly to a customer’s bank account which can be utilized efficiently, anytime, anywhere.
Quick Loans are indeed revolutionizing the lending industry with their streamlined access, ease of approval, lesser amount of paperwork, and simple repayment capabilities. With an entire segment in India plagued with various cash related issues, getting instant loans is becoming the preferred form of credit service. Not only the underserved segments of the population, but even MSMEs and members of the middle and lower segments of the population are turning to instant loan applications, rather than credit services and other financial products.
Rohit Garg is co-founder and CEO of Smartcoin. Views are personal
First post: STI