There are several lending institutions in the market today that offer personal loans for a long list of purposes. Personal loans go by several names these days – wedding loans, emergency loans, travel loans, used-car loans, while also going by the names instant loans, online loans and quick loans. If you are facing an emergency situation of sorts, choosing a Fintech lender over conventional banks for your emergency loan is the best idea for a lot of reasons. Let’s look at why you should choose a Fintech lender in case you land yourself in an emergency and require an immediate loan.
The turnaround time is minimal
This can perhaps be the sole reason why opting for a Fintech lender over a traditional lender, especially for an emergency loan, makes much better sense. Note that Fintech companies like Qbera that offer instant personal loans, complete the processing and disbursal of the loan within 48 hours. Private Banks and traditional lenders, however, take at least 8 business days to process and disburse the loan amount, making Fintechs the better option for people seeking instant access to funds especially in the midst of an emergency.
Fintech companies that offer instant credit to individuals ride on the backbone of a paperless and digital application process, much unlike private banks that do not usually adopt a paperless application process for unsecured credit applications. One of the main reasons behind a quick or minimal turnaround time is the minima documentation involved in availing instant. If an applicant’s credit score is impressive, the application is almost always paperless. In case of individuals with bad credit scores, some bit of physical paperwork can get involved as it also becomes a necessity to physically verify identity details of borrowers with poor credit.
No income or credit score barriers
So you need an emergency loan but don’t have a good credit score or a decent income level? Welcome to the world of Fintechs – you can get your emergency loan even with a low credit score and a low income level. Popular Fintech companies like Qbera offer instant unsecured loans to individuals with a minimum income of Rs 20,000 (net monthly income) and a minimum credit score of 575. If you look at traditional lenders, they require applicants to have a minimum income of at least Rs. 30,000 and minimum credit scores of at least 700 in order to become eligible for unsecured credit.