Imagine this: a financial emergency has cropped up and you must apply for a personal loan. You may either apply to your bank where you’ve held an account for years, or to a lending app that you recently downloaded on your phone. Which one will be faster, hassle free and more reliable?
A loan from a bank…
Banks have pre-approved instant personal loans for their valued customers, especially for those that have a large balance in their accounts and a good relationship with the bank. These loans are sanctioned immediately upon the customer’s application. Basically, the loan product is ready and awaiting the customer’s green signal. Once you apply for it, the bank processes it quickly and may disburse the amount in a day.
However, if you apply to the bank for the loan, there may be delays. Banks typically take time to check your credit score, credit history, repayment ability and your income. Document checks also take some time. Though you may still get the personal loan, these delays may not help if you are in a hurry to get the money. You cannot be expected to wait patiently for the bank to make up its mind about whether to give you the loan or not, especially when the clock is ticking and you are racing to fulfil an emergency.
The points to note against applying for a quick loan to a bank are:
- A tedious documentation process
- Not a wholly digital process for application and disbursal – you might have to go to the bank branch to submit documents and collect the loan cheque
- Inordinate delays in processing the loan application
- A rejection is difficult to overturn into approval at a future date
…but a loan from a lending app
Meanwhile, applying for a quick loan to a lending loan app has many advantages. The entire application and disbursal process is online, so there is no question of submitting paperwork at the branch office. Moreover, the loan approval comes through swiftly, and the loan disbursal follows soon after. This is a big plus for those seeking personal loans for emergencies.
In a nutshell, the points to note for applying to a lending app are:
- You just need your smartphone and the loan app to get the application process going
- The app is swift in checking your credit score and documents, and in processing the application
- The loan money is disbursed directly to your savings account within minutes of confirming approval
- You can repay EMIs using the app, and foreclose early without any charges
Conclusion
It makes little sense to apply for an instant personal loan to a bank or another NBFC when you can easily get the loan you seek from a leading loan app. Loan apps make it convenient and simple to get the loan money during an emergency, so your time and effort are better spent dealing with the urgent need rather than gathering funds for it.