3 ways in which instant digital loans are shaping our lifestyle

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3 ways in which Instant Digital Loans are shaping our lifestyle

Live the better life with instant digital loans

Until recently, getting a loan used to be a daunting and time-consuming process in India. Applying for loans involved a long and complicated process, requiring numerous visits to the lender, endless paperwork, and a considerable amount of waiting time. 

Due to various digital initiatives of the government and the Fintech revolution, we can now get a personal loan online within a few minutes over a mobile app without requiring any physical paperwork. Below are 3 ways by which these instant digital loans are changing the financial habits of Indians: 

  1. Digital loans help you budget better
    One of the most valuable features of instant online loans is that borrowers get multiple repayment options to repay the loan. Based on liquidity, you can choose the repayment period of your choice. This minimises the pressure on their monthly budget and the loan can be repaid without compromising on your lifestyle.

  2. Credit is available when you need it
    Without having to go through the long and tiresome loan application process of traditional providers, you can now comfortably avail loans whenever there is a need for money.

  3. Smaller instant digital loans help build a better credit score
    Even people who are relatively new to credit can now build their credit score quickly, with small-value online loans. The credit score improves whenever loans are repaid on time. In turn, a high credit score helps to get high-value loans like home loans at low-interest rates.
    NOTE: There are two factors to consider when taking online personal loan: 
  1. Check for the interest rates of different loan companies
    It is highly recommended that you compare the interest rates of different lenders, so that the loan can be availed from the one offering the best terms.
  2. Check for hidden charges
    There are multiple charges apart from the interest amount that are associated with a loan. It is important to ensure that the lender does not charge any hidden fees. Always double check for charges and fees like: 
  • Processing charges 
  • Verification charges 
  • Late payment penalty 
  • Prepayment charges 
  • Administration fees 

Lastly, if you are looking for a smooth and fast loan experience, try out the Zype app. With just three easy steps, you can quickly activate your credit line and receive loan approval up to ₹5,00,000. From your Zype credit line, you can select a desired amount, a convenient EMI option and transfer the money to your bank account in a single click. There are no hidden charges, and you can also take multiple loans from your credit line whenever you need it. Download the Zype app now! 

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Frequently Asked Question

Advantages

  • Lower interest rates on the loan
  • Longer repayment tenure
  • Higher loan amount

Disadvantages

  • You have to provide an asset against the personal loan.
  • The lender can seize the collateral if you default on your loan.
  • Higher processing time

These are the benefits of unsecured loans:

  • You don’t have to provide any collateral as security to borrow the money.
  • You can use the money anywhere you like without any restrictions.
  • It takes less time to process an unsecured loan.

Car loans, two-wheeler loans, home loans, gold loans, etc. are all examples of secured loans.

No, you don’t have to provide any collateral as security to take an unsecured loan.

While secured loans have a lower interest rate as compared to unsecured loans, with a good credit score, clean repayment history and a strong credit profile, you can enjoy lower interest rates on unsecured loans as well.

Collateral is an asset (like your jewelry, land, vehicle, etc.) that you provide to your lender as security in exchange for a loan.

A collateral is important in secured loans because it acts like a guarantee against the loan taken by the borrower.

Unlike a secured loan, in an unsecured loan the pledged assets are not at risk of being seized by the lender. This makes it a less risky loan for the borrower.

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