Private Banks have often been known to offer the best financial services, especially in the lending space. While their reputation is certainly intact, the market is witnessing a paradigm shift in the way individuals access loans, especially unsecured credit, in recent times. If you’re in need of urgent money, a loan is perhaps the best option. But how soon can you get a personal loan if you approach a private bank or a traditional lending institution? Well, not very soon. As much as banks have improved their service delivery in the last many years, if you’re on the lookout for urgent cash loans, opting for a Fintech lender is a better option.
Quite reasonably, the best advice if you’re looking for quick loans is that if you need money urgently, try fast cash loans in India from Fintechs. Qbera is a popular Fintech company in India that offers instant personal loans to salaried individuals. Let’s go ahead and find out why Fintechs have the upper hand over traditional lenders, at least as far as availing an urgent loan is concerned.
Choosing Fintechs over Traditional Lenders – What is the advantage?
Well, many people question the benefit of picking a Fintech lender over a traditional lender for personal loans, especially considering the fact that traditional lenders like private banks are known to offer much-reduced interest rates. Coming to think of it, the interest rates on personal loans fall in the range between 10.75% p.a. to 24% p.a., with private banks offering lower rates than their Fintech peers. While this is true, it is important to note that there isn’t a massive difference in the interest rates offered by the two entities in question. Fintechs like Qbera offer personal loans at rates starting at 11.99% p.a. – not too much of a difference is it!? More so, if you compare the starting interest rates offered by private lenders and Fintechs, the increased rate offered by Fintechs does not translate into a massive difference in the repayment structure – meaning, just because you opt for a Fintech lender whose rates are slightly higher, it doesn’t mean that your monthly repayment amounts shoot up rapidly. Let’s cite an example in this regard – a loan of Rs. 2,00,000 at a rate of 10.9% p.a. for a tenure of 2 years translates into a monthly repayment amount of Rs. 9,312, while the same amount against an interest rate of 12% p.a. for a 2-year tenure corresponds to a monthly repayment amount of Rs. 9,415. As you can quite clearly see for yourself, there isn’t too much of a difference, is there?
Here is where the real difference lies. If you’re looking for urgent cash loans that you can receive in your bank account within 24-48 hours, private banks don’t quite help you with that – simply because loans from private banks have turnaround times of at least 7 to 8 business days! So if your requirement is immediate, approaching a private bank isn’t the best idea, also noting that the main difference lies in the interest rate offered, which doesn’t really translate into a massive difference when repayment structures are cited – as we just did in our example in the previous paragraph.
Clearly, if you need an urgent loan, a Fintech lender is best equipped to help you out. Advanced algorithms that instantly determine eligibility and seamless processes adopted by Fintechs have consequently enabled super-quick loan processing and near-instant disbursal.
Wondering how it works? Here goes
When you apply for a personal loan with Qbera, information on your credit profile is obtained instantly from the bureau through Qbera’s proprietary risk-based algorithm. Further, the algorithm instantly evaluates your credit profile and generates instant approval if your profile meets Qbera’s internal credit norms – impressively, all this happens within a few minutes. Once you receive approval, all you’ve got to do is upload your supporting documents – which are then verified digitally – and receive a customized loan offer. Upon acceptance, you will get the loan amount into your registered bank account within 24-48 hours! The process is as seamless as you can imagine!