Financial and non-banking financial institutions have integrated with technology to offer a smooth and instant digital borrowing experience to customers. Technology and finance have merged together to enhance the complete borrowing environment. This has been a huge transformation in the loan industry, especially since the pandemic. Digital loans are available on the very same day and it has gained a lot of popularity among individuals.
Gone are the days when someone would actually visit a bank for personal loans as it is time-consuming and expensive. Therefore the popularity of Fintech organizations has taken an edge. However, before one welcomes a change wholeheartedly it is important to judge the perks and drawbacks of having an instant personal loan online from Fintech. Let us check out some of the commonly believed myths and the real facts about the Fintech organizations.
Facts about Fintech organizations
Smart experience better than banks: Fintech has been a digital experience where it enhances an instant and online experience. Fintech organizations help borrowers to integrate with digital wallets like Google Pay, Paytm, PayPal, so that borrowers can get an easy online payment.
Quality Check: Fintech firms are able to check the credit background and credit scores of different borrowers and deliver them to financial institutions as needed. This analysis of the borrower’s creditworthiness simplifies the lender's decision-making about whether to sanction the loan or not.
Availability of smaller loans: Fintech organizations have ensured that individuals get a small personal loan at the time of emergency or need. There have been various individuals that are benefiting from a small personal loan to support themselves. There are digital agencies that offer up to 1. 5 Lakh within just 24 hours, hence this has been a great help.
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Myths about personal loan
Instant approval: Instant personal loans are available from Fintech organizations. However, for bank accounts in cooperative or regional banks the borrowers will not get an instant personal loan.
Faster Disbursement: It is true that digital borrowing agencies offer instant disbursement. However, success and profits entirely depend upon the operational efficiency of the loan applications.
Unlimited KYC authentication: Fintech organizations offering unlimited KYC authentication is a myth. Too many people apply for KYC that are often dropped due to the limited database to store essential KYC data.
Wrapping up
It is easy to take a personal loan from Fintech organizations. However, while taking an instantpersonal loan online you must always be careful about the costs and compare the loan provider with the help of a personal loan calculator.
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