Availing of a personal loan via a personal loan app is one of the simplest things one can do in the current era to avail of emergency funds. Instead of asking a friend or relative, this is a much better option.
Stashfin ensures that the potential borrower faces no hassle and avails personal loan funds conveniently. Our application is user-friendly, and one can get the application approved within no time.
What is a personal loan?
As the name says, a personal loan is a type of loan that potential individuals can borrow from a recognized financial institution such as a bank or online lender in order to fulfil personal financial needs.
Unlike car or home loans that can be used only for a specific purpose for obvious reasons, this type of loan can be used for a wide range of purposes. These are debt consolidation, home improvement, education expenses, medical bills, or a family vacation.
What are its pros?
These loans are generally versatile in nature and can be used for a wide range of purposes. This means that it provides the borrowers with the flexibility to address various financial needs, as mentioned above.
Most of these loan types that are availed from an instant loan app are unsecured, meaning they do not require any collateral. This ultimately eliminates the risk of losing an asset, such as a car or house, if, by any chance, the borrower defaults on the loan.
Fixed Rate of Interest
Many such loans have fixed rates of interest throughout the loan tenure. This allows the borrowers to budget and plan their repayment without worrying about fluctuations in interest rates.
Improving Credit Scores
Successfully managing and repaying a personal loan can positively impact credit scores. Basically, making timely payments demonstrates responsible financial behaviour, which may lead to improved creditworthiness.
Mostly, people avail this type of loan as they are in need of instant funds. So, once they apply, the application is approved quickly, and funds are credited within no time.
How does the instant personal loan disbursal process work?
The whole process of loan disbursal includes the below mentioned six steps:
Potential borrowers apply for personal loan via an application provided by the lender. It requires filling out personal information, income details and providing necessary documents.
The lender verifies the borrower’s identity and conducts a credit check to assess their creditworthiness. This process may involve validating personal information, reviewing credit history and assessing the borrower’s ability to repay the loan.
If the potential borrower meets the lender’s eligibility criteria and passes the credit assessment, the application is approved. However, the lender is only capable of determining the loan amount, rate of interest, repayment term etc.
Acceptance of T&C
Once the loan is approved, the borrower receives the loan offer with all the terms and conditions. Then, they review it and accept it at their convenience.
After accepting the loan offer, the lender initiates the disbursal process. In case of availing an immediately personal loan, the amount is electronically to the borrower’s bank account within a short period, often within a few hours or even minutes.
The final step is the borrower’s responsibility for repaying the loan according to the agreed repayment schedule. This involves making regular monthly payments that include both the principal as well as interest.
If you are looking for a personal loan, you just read the right article. However, keep in mind your needs following, which apply at our website or download our loan app from Play Store/App Store.