Personal Loan Online Lending Vs Personal Loan Apps: Which One to Choose? | Rupeezo

By Rupeezo | 13th, Jan, 2023

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A personal loan is very versatile primarily because you can use it for many purposes. These loans aren’t secured by collateral and are less expensive than credit cards.But when it comes to applying for them, the options are endless. You can either get the loan online on your lender’s website or use a personal loan app. The latter is a highly convenient option as you can apply for the loan on the go using just your phone.

Having said that, both methods have their unique benefits. So, which one should you choose? Learning about the benefits of online lending and personal loan apps will help you make a sound decision. 

The Advantages of Lending Personal Loans Online

With the rise of FinTechs, availing of personal loan online has become a breeze. No longer do you need to visit the branch office of the lender to get a loan. Here are some salient benefits of online lending.

     1. Allows You to Compare and Contrast Multiple Offering

As consumers seeking personal loans, you can easily manoeuvre the different sections of lenders and compare their offerings. Some well-established financial services companies host a ready comparison of loan offers.

If you have an idea of your creditworthiness, you can focus more on lenders suitable for you. In addition, with a personal loan EMI calculator, it's easy to compute the monthly EMI amount. It thus assists in choosing a suitable tenure.

All this lets you manage your expenditure and related obligations.

QUICK TIP: When comparing online lending loans the key factors include the rate of interest, processing fee, stamp duties, and hidden charges. 

     2. Rapid Approval Process

In online lending, the entire verification and approval procedures are digitally managed. Thus, the time to disburse the loan amount significantly decreases. Moreover, suppose you fulfil eligibility parameters and submit relevant documents. In that case, funds come into your bank account the same or the next day.

It is in stark contrast to traditional lending, which can take anywhere from 10 days up to a month for loan approval.

Traditional lenders look into your business collateral, credit history, and projected income. Online lenders also investigate many of these factors. Still, there are higher chances of approval happening the same day. 

QUICK TIP: Many underwriting sources are used in lending online loan that traditional lenders don’t use. So, small business loans from online lenders are more appropriate for small businesses that cannot qualify for conventional bank lending.

     3. Personalized Service

Don’t bear the misconception of being unable to leverage personalized service when lending loan online. Today, online lenders increasingly keep financing specialists who are capable of hearing your story and evaluating your situation. Thus, it gives a more human touch to the process of lending online loan.

Several online lenders have their distinct proprietary risk models that consider the industry, time, business, and external variables. 

     4. No Need for Extensive Paperwork

One of the topmost benefits of lending online loan is the seamless application process. All you need are scanned versions of the needed documents to let lenders process your loan. You can check the document list on the website when seeking a personal loan online. 

Not only that, but after completing the application process, it's possible to track your loan application status. You don’t need to worry about damaging original documents; you only need to upload scanned copies, not originals.

The Advantages of Personal Loan App

For lending personal loans online, you can also use personal loan apps. These offer a platform for easy loan application and approval. 

     1. Simplified Application Process

The application process is extremely convenient, whereby you simply download the app and upload the required documents. The loan gets approved in a short time. After you apply, the lending decision happens in a few seconds, and you get an instant cash loan in the app. 

     2. Flexibility in Choosing Loan Amount and Duration

There’s a high level of flexibility when using online lending loans apps. For instance, you can avail of a loan from Rs. 5000 to Rs. 5 lakh using the app. Here, you can get any loan amount from this bracket according to your eligibility. 

Similar is the case with the loan duration. You may take a loan for a period ranging from 3 months to 5 years. 

     3. Avail Small-Ticket Loans Easily through the Personal Loan App

One of the chief advantages of using an app for a personal loan is the ability to get small-ticket loans instantly. These loans under Rs. 1,00,000 are the most sought-after by people.

The simpler eligibility criteria and flexible repayment structure enable people to fulfil their financial goals easily.

     4. Track Your Borrowings

Another advantage of lending loan online through an app is the ability to track your borrowings. Usually, the apps give a flawless user experience. You can access all the key information about recent borrowings, such as personal details, and active and past loan details.

Not only that but you also get automated alerts of payment details, which ensures that you don’t miss any payments.

Which Option is Better?

After a thorough examination of the benefits of personal loan apps and online lending, it's safe to conclude that there’s no clear winner. The advantages of both options are quite similar. So, your decision should rely on your needs and available resources.

Frequently Asked Questions

     1. What is the Quickest Loan to Get Approved for Online?

If you are looking to avail an easiest personal loan online, there are many options. These include:

• Payday Loans
• Car Title Loans
• Pawn Shop Loans
• Personal Loan Without Any Credit Check

     2. How Can I Get a Personal Loan Online Quickly?

If you are looking for online lending loans, the tips below will help you secure them quickly.

• Look for Same-day Loans Given by Some Lenders, Banks, and Credit Unions
• Avoid Payday Loans and Auto Title Loans as They Offer Same-day Cash but Are Notorious for Predatory Costs
• Submit Your Loan Application Online to Have It Processed Fast

     3. What’s the Fastest Way to Avail of a Personal Loan?

Online lenders, credit unions, and banks are the three chief options involved in lending personal loans online. Out of them, online lenders offer the fastest way for borrowers to get a personal loan. Many let you pre-qualify and view your rate and term before you apply formally. This process involves a credit check, and you can compare loans from various lenders without hurting your credit.

Conclusion

After learning the benefits of online lending and personal loan app you must feel ready to make the right decision. If you are looking to avail of a personal loan fast, head over to Rupeezo, an instant personal loan provider. The platform simplifies the process of lending loan online as it handles loan applications conveniently and transparently. Thousands of individuals have been able to get the instant loan online through the easy application process and a high approval rate. So now you can overcome all obstacles limiting you from securing the cash you need for important things.