A lot many fintech firms today are coming up with the idea of small cash loans on their websites. These loans are a quick solution to any financial distress. An instant cash loan can be approved the same day of the loan application. The funds can be disbursed the very day as well. You can borrow between Rs. 10,000 and Rs. 50,000 under this loan scheme.
Since banks and NBFCs only provide a big loan amount, people who face the immediate need of cash are often left with no option than liquidating investments or seeking a soft loan for fulfilling their monetary needs.
Startup fintech companies act as aggregators, helping customers find the right loan from the right providers. But, they also bridge the gap between people and cash support by directly offering short-term loans lasting for 30 to 90 days tenure. This way, many such newly established organizations are making a mark in the lending industry. These firms are tapping the needs of customers and connecting with them via instant loans, which is the need of the day.
The documentation for the loan is hassle-free and you do not have to wait, compare options and then apply for the loan. Rather you can apply for the funds with a direct lender that can disburse the loan amount to your bank account within 24 hours or less. No banks or NBFCs involved, thus quicker loan processing and assured funds in no time.
Should You Choose an Instant Loan from Startups?
You may be thinking that trusting renowned banks/NBFCs is easier than a startup loan provider. Your concern is acknowledged. But, if you really do not need a big amount as much as Rs. 1 lakh as a loan, then quick cash loan from a start-up company is a way out of troubles. Here is how you can distinguish a professional and transparent instant loan provider than a fraudulent one.
- The company will be upfront about all the costs, such as loan processing fee, other loan-related charges and penalties on account of default in repayment. A legal loan agreement will take place between the provider and you.
- The website will not redirect you to any unsafe webpage or sources or coax you to pay for the services before you receive valid support and help.
- You will get a complete financial solution from the customer personnel and credit manager. Right from helping you out with the loan application, documents, understanding your requirement, to loan sanction and disbursal, and further.
- You will be able to keep a track of your loan application from a personal account with the website. You can also expect reminders for the repayments, so you can be relaxed and plan finances accordingly.
- Fintech startup firms that provide small loans will also have financial tools on their websites for free-use. These tools would be loan eligibility calculator and loan EMI calculator. You can expect to get a detailed amortization sheet of your loan.
Thus, it is evident that taking an online instant loan from start-ups is beneficial in more than one way. By referring to above-information, you can understand which of the providers would be ethical and authentic.
Which is better – Small Cash Loan or a Traditional Loan?
Let us first understand the meaning of a loan. A loan is a financial aid usually chosen as per monetary requirements, which stay unfilled due to lack of finances or other circumstances. For instance, you would take a home loan to purchase a house, a car loan to buy a car, and an education loan to pursue higher studies. A traditional serves a specific purpose as stated here.
But what if you have varied needs and require quick cash to meet several purposes? This is the time when an instant loan can come to rescue. It is a modern-day loan, which helps you fulfill cash needs in a matter of hours, and the same is provided by some leading start-up online fintech companies.
- A small cash loan is just like a personal loan, you can use it for any expenses, and it is unsecured, no collateral to submit with the loan provider.
- Several people use the funds to pay for wedding, travel, home repair, medical emergency, small educational expenses etc.
- The only difference is the loan size and tenure. You can borrow in thousands in the former and minimum Rs. 1 lakh in the latter.
- The tenure of the personal loan is between 1 year and 5 years, while that of the former is up to 90 days only.
- If you are in urgent need of a small amount of cash, then a small cash loan is thus, the perfect choice.
Most of the banks and financial institutions offer traditional loans than instant small cash loan. If you are looking for immediate cash and are a salaried individual with necessary income proof, decent credit score, residence proof, identity proof, then you can apply for the loan online on a website of the loan-providing company.Sponsored Post