There are various financial platforms providing instant loans online with easy EMI & low-interest rates. The fintech segment has recently been booming across South Asia, with India leading the market size in consumer base. With the rise of fintech, many companies are entering the online loans market. With their reticulated growth strategy, the apps have been ranking among the top platforms providing loans online, including personal & cash loans.
The post-covid situation globally has made human lives more remote than earlier. The banking & financial systems also have seen significant changes in their working system. Now consumers can avail of an instant loan online from the comfort of their homes. Banks, NBFCs, and many fintech companies have been working on app services to smoothen the delivery operations and reach consumers.
Flexible online loans are a great way to overcome unwanted small expenses. These apps provide this to the customers as long as they fulfill the necessary eligibility criteria. They also have come up with the ‘Buy now pay later option, where borrowers can make a purchase through the app and repay the amount later. This support form is similar to the cash loan banks provide, but the process here is much faster and more convenient.
Until the last decade, the traditional loan system has been unsuccessful in leveraging financial support in rural parts of the country. But with the emerging digitization of the payment system, it has been easy for people across the country to avail of a cash loan online.
It is beneficial for those from rural areas needing Flexi loans. Also, it will, in a way, lead to the inclusion of these people into the formal financial system, as compared to earlier times when moneylenders used to exploit them in the name of financial support. For example, a shopkeeper from a rural village in Punjab or UP can avail of small Flexi loans online from fintech companies at nominal interest rates. Loans like these are easy to obtain at low-interest rates and are risk-free.
The transition in the lending process has smoothened up in the last few years. Also, competition among the banks, NBFCs, and fintech companies to attract customers for providing online loans has leveled up. With the reach of the internet, lending of instant loans online has become a new feature in all fintech companies. The post-covid period has seen business recoveries across the country, and business requires finance. Companies seek more opportunities for this by providing instant loan app services, online loans, cash loans, and personal loans. All it needs in most cases is the PAN card, address proof, and bank statement. As a result, the loan process has been more convenient than ever.
As the competition strengthens, we will see more companies entering the fintech domain in the coming years. For example, Kreditbee aims to provide 1 billion dollars worth of credit and loans online in this financial year. The online loans market has penetrated deep into the most remote corner of the country, allowing people to avail of instant loans online anywhere and anytime. It is a great leap given the weak financial literacy and knowledge level, especially in the non-urban regions. Also, it has opened up the vast doorways for people’s connectivity with financial institutions in terms of online loan services.
In the upcoming years, this trend grows increasingly, with the covid situation remaining stable.