‘Small is Big’- Changing diaspora of lending in India
Availability of loans from banks has been quite challenging in India, especially for small business owners and sole proprietors. They usually lend them loans at high-interest rates, due to which these small business owners or entrepreneurs are often excluded from the mainstream credits. The high cost of lending by banks is often linked with the absence of reliable financial services.
Banks usually approve the loan request based on past data, and these small businesses or startups owners do not always have the historical financial data. This leads to a credit gap between small business owners and entrepreneurs.
Due to all these factors, instant personal loan apps have become extremely popular. Digital lending platforms are the one-stop solution that helps to bridge the funding gap. It has changed how small businesses owners can avail of loans. Three main factors have contributed to make the loan app a game-changer for small business loans:
Alternate Data
Online credit platforms have developed an alternative form of credit risk analysis that relies on forward-looking data instead of historical data. The digital lending platforms use data like spending patterns, online behavior, telecom product usage, consumption trends, etc. while determining the eligibility for the credit product. Moreover, the GST-linked data has become extremely popular for online loan approval as GST data is standardized, reliable, and available online. Thus, it has created an opportunity for online lending, especially for small businesses.
Low Customer Acquisition Cost
The digital lending platforms have much lower customer acquisition and loan processing costs. Moreover, the personal loan interest rates are even less as compared with traditional lending institutions. For loan approval online, the following three steps need to be followed by the lenders:
- Customer onboarding and KYC
- Loan processing
- Loan disbursement
Customized Products
Access to multiple online data has allowed digital lenders to develop data analytic tools that can help them understand the borrowers’ financial needs and develop customized credit products accordingly.
Each of these factors has contributed to an increase in the demand for digital lending platforms. The increase in demand has been even because these loan apps provide the borrowers with loan amounts instantly without any collateral backup. The borrower does not have to stand in long queues to get their loan requests approved, and even they do not have to risk their asset to avail the loan. The borrowers can avail of instant loans to meet the urgent cash requirement. The best part is the personal loan interest rate is meagre as compared to that of banks.
There are various instant personal loan apps available. TrueBalance is one of the best out of them. It allows the borrower to borrow up to INR 50,000 without any collateral backup in return. Moreover, the borrower does not have to undergo lots of paperwork or hectic procedures to avail of the loan as everything is done online. The loan through this app is a borrower-friendly approach as low personal loan interest rates are charged from the borrower. Isn’t this amazing? For personal loans apply online via the following the below-mentioned steps:
- Select the loan requirement
- Fill in the necessary information
- Check the eligibility
- Upload KYC documents and personal pictures & phone number
- Verify OTP
- After all this process, the money gets transferred into the borrower’s account
TrueBalance aims to offer the services to lots of customers, offering them peace of mind, and has become the lender of choice for every salaried person in India. For an instant loan, apply through the TrueBalance app to avail the best services at the time of emergency!
