Thanks to the digital revolution, things have become quite easy in several areas of our modern lives. This revolution has also spread to the lending sector and has led to the growth of the instant loan app. These apps can be of immense help during financial emergencies.
As the popularity of the instant loan app grows, several misconceptions have also come up regarding them. As a modern borrower, you should be aware of these and the facts behind them so that you can make sound financial decisions when in need. To help you out, we are debunking 5 such misconceptions related to the instant loan app. Let’s check them out.
1. Instant loan apps are not safe
This is an understandable concern as there are many scammers out there in the guise of loan providers. However, as long as you are choosing a reliable instant loan app, you will face no safety and security problems. Since these apps function primarily online, the best way to get to know them is through the internet. You can check whether the app is safe or not with the help of these parameters:
– Number of downloads on the App/Play Store
– Ratings on the App/ Play Store
– Users’ reviews
Also, make sure that the loan app uses secure encryption technologies on its platform.
2. Instant loan apps charge a heavy rate of interest
While this may be true for some instant loan apps, most of the good ones will charge you a very low interest rate. Depending on your loan amount and chosen repayment tenure, you can get loans with interest rates as low as 1% per month. This makes the repayment of the loan easier and cost-effective.
3. Instant loan apps ask for a high credit score to sanction your loan
The fact is that you usually do not require to submit your credit score to get a loan from these apps. This makes these apps ideal for first-time borrowers. The main borrowers who benefit from this are students who have just completed their education and are yet to build their credit scores. An instant money loan for students of such nature proves to be very helpful for them as they can later repay such loans on time and successfully build their credit score.
4. Instant loan apps are only for tech-savvy people
People often think that just because the entire application process happens online, one has to be very tech-savvy to use instant loan apps. This is not true as most instant loan apps usually have a simple and minimal loan application process so that anybody can have the opportunity to attain a loan. A standard procedure might go like this:
– Download the app
– Fill in the simple loan application form
– Provide the documentation: your PAN card, Aadhaar card, and a selfie.
That is all!
You can also check the status of your loan simply by refreshing the app. And once your loan is approved, the money will be transferred into your account within around an hour. Quite easy, wouldn’t you say?
5. Instant loan apps charge a signup or membership fee
Many instant loan apps in the market do not charge any membership fee. The only fee you may have to pay is a low processing fee when you apply for the loan.