Are Online Loans Better?

Feb 3, 2021

| 1 min read

With every passing day, more and more FinTech ventures are offering an online personal loan. Subject to your needs and requirements, either an offline loan or an online one is suitable for you.

Some borrowers prefer an in-person experience. For them, the conventional brick-and-mortar bank is ideal. However, if modern conveniences and fast funding are your preferences, and the online lender is right up your alley.

The rule of thumb is that you should go for the lender who gives the lowest interest rate. To ensure this, always take quotes from multiple personal loan givers before making an informed decision.

When It's An Emergency

When you need money urgently, online quick loans are the best option. Online loan givers can process applications much faster than traditional banks.

In fact, many online lenders offer same-day loan disbursement or within 24 hours.

In addition to speed, online lenders offer a host of other benefits. By posting their rates online, they provide full transparency. It also aids their borrowers with their research.

According to industry experts, using online loan applications also assuage a lot of the anxiety that borrowers face. Despite having good credit, loan-takers often wonder if they will get the amount they are seeking.

The transparency practiced by most instant loan apps eliminate such apprehensions.

Any-Time Loan

One of the most amazing things about the internet is that it is open for business 24X7. You can apply for a loan anywhere, anytime.

Suddenly remember that your gym membership is due while catching a movie with friends? Apply for an instant online loan.

Traveling with family and need urgent cash? Apply for an instant personal loan online right now.

Out of cash while out on a lunch date with your girlfriend? Take an online personal loan right now.

Lots Of Options

Imagine a personal loan marketplace that offers you credit that is tailor-made to your unique needs and one-time requirements. Now imagine a marketplace that offers innumerable such offers.

That's right! Availing an online personal loan enables you to assess multiple offers from the same company as well as myriad offers across competitors.

By comparing terms and interest rates across the board, you will be in a much better position to make the right decision.

When You Are Not Eligible For Traditional Lenders

Conventionally, brick-and-mortar banks do not lend to college students or young professionals. They are averse to borrowers who cannot put up collaterals or assets.

In some cases, youngsters are not employed. Borrowers who cannot furnish proof of employment cannot borrow a personal loan from conventional financial institutions.

In such scenarios, borrowers who are not eligible for a personal loan from traditional institutions have to turn to online personal loan apps that have a much simpler onboarding process.

Pre-Approval

Many online applications offer a personal loan that is pre-approved. Based on your credit history and income, an amount is calculated against which minimal documentation is required.

Since the borrower is now already eligible for the amount, there is a significant reduction in processing time and the personal loan is disbursed immediately.

Innovative Products

In order to better serve their customers with customized offerings, personal loan apps tailor-make their products to suit the unique needs of their consumer base. So, they create products such as bikes, travel, and wedding loans.

These products cater to a very niche but important section of the consumer base, thereby building brand loyalty and ensuring repeat business.

Unfortunately, online personal loan offerings and lenders are not a happy story all around. One of the biggest issues borrowers face with online lenders is credibility.

Imagine a large, financial conglomerate that is widely known all around the world. With offices in every city of your country, you will not be faced with any dilemma when availing a home loan, car loan, education loan, or business loan from them.

Compare that to an online lender whose only interaction with you is through an app downloaded on your smartphone.

In such a scenario, you are bound to ask questions pertaining to trust. Will I get the money on time? Will I get the money when I need it? Will this personal loan app respect my privacy?

Are all the confidential information that I share with the personal loan app safe?

With mPokket, you have no such thing to worry about. One of the best personal loan apps in India, we have a loyal customer base that runs into tens of lakhs of users.

One of the biggest reasons behind our success with our customers is the user-friendliness of our app. Simply download and install mPokket from Google Play Store, register with just a handful of documents, and get approved.

You can borrow from Rs.500 up to Rs.20,000. The money will be credited directly into your bank or Paytm account.

Gaurav Jalan

Gaurav Jalan is the Founder and CEO of mPokket, a digital lending platform serving underserved Indian youth. He leverages technology and experience to deliver cost-effective credit to marginalized populations. In his role, he provides strategic direction and oversees execution to fulfill mPokket's mission.

Other blogs

Financial emergencies have a sneaky way of coming without a warning. Whether it is a severe health problem, fixing your house, or making an urgent trip, you must always be able to use fast money. Instant loans are the source of this need, giving quick cash to people with stable incomes. This guide will cover the basics of urgent loan online, including why they are popular and how to apply, and strategies on repayment loans to ensure that you make an informed decision.

Why do Salaried Individuals Prefer Instant Loans?

The growing popularity of instant loans among salaried individuals can be attributed to several key factors. Here’s why why do salaried individuals prefer instant loans:

Speed and Convenience: Instant credit stands up to the name, as it is processed speedily, in most cases, under 24 to 48 hours. Salary employees commend this process because it is easy to fill it online with user-friendly platforms and deposit their money directly into their bank accounts. Usually, there are several documents to fill in, meetings with the bank officer, and long waiting periods that may take months. On the other hand, instant loans do not have these barriers, providing a more rapid and less complicated procedure.

Emergencies: Unplanned events such as a medical bill, a car repair, even a sudden failure of an appliance, or possibly urgent travelling due to a family crisis can lead to immediate financial needs. Salaried people face emergencies instantly through instant loans, thus avoiding delays or depression from insufficient finances.

No Collateral Required: Instant loans do not need collateral, unlike secured loans that require collateral in the form of property or gold. Thus, salaried employees can get money without worrying about losing their essential assets. This lending type appeals to people without property or who can not pledge collateral immediately.

Flexible Loan Amounts: Instant loans are a type of credit that can be used for any financial need. Whether you need just a little to fix a minor car repair or a more significant amount for a considerable medical expense, instant loans offer you the convenience of borrowing the amounts you need. Salaried people can buy the products they need without taking on unnecessary debts.

What Documents Do Salaried Individuals Need for Instant Loan Applications?

Thinking of what documents do salaried individuals need for instant loan applications? To ensure a smooth and quick loan processing, keep the following documents readily available:

Identity Proof: To verify your identity, you should show a government-issued document such as an Aadhar card, passport, or driving license.

Address Proof: Records like electricity and water bills (utility bills), rental agreements, or voter ID cards can all work as address proof.

Income Proof: Salaried employees must submit proof of income and ability to repay to meet the acquisition standards.

Employment Details: To show a stable job, you must provide the lender with your current employer's name, job position, and work experience.

Bank Account Details: Lenders can request a bank statement showing your salary credit and transaction history for a given period.

Photographs: While photographing is not essential in most other cases, this is not the case when applying for a loan for low salary.

How can Salaried Individuals Manage Instant Loan Repayments Effectively?

The fact that instant loans provide undeniable benefits is not a reason enough to ignore the importance of responsible repayment that may save you from ending up in a debt trap. Here are some key strategies how can salaried individuals manage instant loan repayments effectively:

Budget Wisely: Prepare a detailed plan that divides money between your monthly loan payments and your usual spending. Budgeting will allow you to manage your finances properly.

Automate Repayments: Automate withdrawals from your salary account to your loan instalment to prevent the risk of missing repayment and incurring penalties.

Avoid Multiple Loans: If you use instant loans to solve urgent needs, you should ensure that you don't get into various loans simultaneously. Every loan you take adds more to your financial burden, increasing your debt-to-income ratio. It may be hard for you to repay your debts, damaging your credit score.

Build an Emergency Fund: It is crucial to have a rainy fund in addition to your loan repayment. This safety net implies that you are ready for unpredictable events because additional loans are not required.

Conclusion

Instant loans provide a quick and easy option for salaried people who suffer an unexpected financial crisis. Nonetheless, their proper application should be considered carefully and with an unambiguous strategy. Knowing the pros and cons of instant loans will help you make a well-informed decision. Besides, considering your financial state and following some repayment strategies will allow you to better manage instant loans.

Remember that instant personal loan online for salaried loans can be a handy tool when you face a sudden emergency, but don't get addicted. mPokket can help you with instant loans. By keeping a keen eye on your finances and being selective about how you use instant loans, you can be sure that they will work for you rather than you working for them.

Guide to Instant Loans for Salaried Individuals: Everything you Need to Know

Short-term loans are your best option when you need cash for your business or personal use. Quick cash loans can be obtained instantly and repaid in a short time. While these loans are convenient for managing immediate cash requirements, they also have risks and insecurities. Let us know in detail about short-term loans, their types, advantages, and disadvantages.

What are Short-Term Loans?

As apt to the name, short-term loans are taken for shorter periods. These loans are offered on an urgent basis and can help resolve immediate cash shortages. Banks and other lenders offer short-term loans with varying terms and conditions.

Why Consider Short-Term Loans?

When you understand short-term loans, knowing why to consider short-term loans will be helpful. Here are some reasons why:

In Case of Emergency: Short-term loans are very helpful when you need money in emergencies and are short on it.

To Get Rid of High-Interest Loans: If you have taken any other loan on which you are paying high interest, short-term loans can be used to get rid of such types of high-interest loans.

For Shopping: Shopping loans are also short-term loans which can be used to make major purchases.

For Travelling: You can also use short-term loans to plan your payments for travel-related expenses like booking tickets, stays, etc.

For Education: Short-term loans are an excellent option for paying for education expenses like college fees, books, and other essential things.

What are the Types of Short-Term Loans Available?

Once we have understood these quick cash loans, the next question is, what are the types of short-term loans available? Short-term loans are of different types. Given below are some of the short-term loans:

Payday Loans: Payday loans are taken when you are short on cash and waiting for your salary. They work like an advance salary, which you can spend on your requirements. You need to repay the loan on or before your salary day.

Personal Loan: Offered based on your income, job, and credit history, personal loans do not require paperwork and are approved and disbursed quickly. This type of loan can be used for various purposes like urgent home repairs, medical emergencies, wedding expenses, travelling, shopping, etc.

Loan Against Gold: As the name suggests, this type of loan is taken by mortgaging your gold against the loan amount. Also known as a gold loan, this is a secured loan that gives you the flexibility of paying back the principal amount after the tenure is over.

What are the Pros and Cons of Short-Term Loans?

Although short-term loans are essential financial tools, they also have some pros and cons. Let us find out what are the pros and cons of short-term loans:

Pros:

Quick Cash When Needed: Short-term loans can fulfil your immediate cash requirements as these are approved immediately.

Flexibility of Repayment: These loans offer flexibility in repayment. You can choose to pay back quickly or over an extended period.

No Mortgage Required: Short-term loans are unsecured loans, which means you do not need to keep any collateral against the loan amount.

Helps Build Credit Score: These loans are approved quickly and can be repaid quickly, helping you improve your credit score.

Cons:

High-Interest Rates: As these are unsecured loans, the interest rates charged on them can be higher than those charged on traditional loans.

Processing Fees: The lender may charge additional fees for processing loan applications that may be taken from the borrower.

Limited Amount Sanctioned: The loan amount can be limited as these are unsecured loans, and lenders do not take the risk of providing bigger loans.

Risk of Increasing Debt: If you are unable to pay back the loan, it may lead to an increase in debt as the interest rate on these loans is higher than that on traditional loans.

Conclusion

Instant short-term loans are an important financial instrument which can help you when you need urgent cash. These loans are easy to apply for and get quickly processed. They can help you fulfil emergency requirements or other casual expenses. For those looking to apply for a loan for low salary, mPokket is the best app, which provides quick cash loans. You only need a little documentation, and no collateral is required.

Essential Guide to Short-Term Loans: What You Need to Know

Everyone needs to make essential purchases or upgrades once in a while. This can include buying a new car, replacing an old air conditioner, or buying a new laptop. Obtaining an online loan for shopping can help you make important purchases. A thorough understanding of shopping loans will help you understand how they can be useful when making big and important purchases. Let’s explore what are shopping loans and understand their perks and other essential aspects.

What are Shopping Loans?

A shopping loan is a type of personal loan used to fulfil important or urgent shopping needs. It's an unsecured loan, so you don't need to offer any security. You can use the loan for both in-store and online shopping.

To get a shopping loan, you'll need essential documents like your PAN or Aadhar card for proof of identity. You'll also need proof of income, such as a three-month bank statement and a two-month pay slip.

Why Consider Shopping Loans for Smart Purchases?

If you need to finance your shopping expenses, applying for a loan for low salary is a better choice than breaking down the fixed deposit. Read on to find out why consider shopping loans for making smart purchases:

Faster Approval: Personal loans generally get approval quicker. This option will be helpful when you are facing a budget constraint but need to make some essential purchases.

Highly Convenient: Shopping loans are primarily available online. Thus, you can easily apply for one and complete the entire process from home.

Preserving Your Savings: You can keep your savings for emergencies while choosing a shopping loan for your big purchases.

High Flexibility: Shopping loans give you much flexibility regarding repayment options. You can choose the repayment plan that best suits your budget and financial goals.

No Need for Collateral/Guarantee: Since it is an unsecured loan, you do not need any collateral or guarantee to take a personal loan for shopping.

Affordability: Shopping loans help you pay for expensive items over time. Instead of paying all at once, you can pay in smaller, manageable amounts, making it easier to make big purchases.

Better Interest Rate: Compared to credit cards, personal loans offer better interest rates and are cheaper.

Who Qualifies for Shopping Loans?

Understanding the eligibility criteria is essential to know if you qualify for shopping loans. So, to help you answer “who qualifies for shopping loans”, here is a list of criteria you should follow:

The individual has to be an Indian citizen.
Be a full-time employee in the government or private sector.
Have a minimum of 6 months overall work experience and 3 months of experience in the current organisation.
The individual should receive a salary in a proper bank account.
Your monthly salary needs to be at least over 30,000 (this will vary from one lender to another).

What are the Best Ways to Use Personal Loans for Shopping?

Let’s take a look at how you may use a personal loan for shopping without risking overspending:

Shop Only for Essentials

The best way to stay in control is to have an actionable budget plan to help you understand how much you can safely spend on extra indulgences.

Spend Only What you Have Borrowed

It is wise to spend only the borrowed amount to prevent blown budget plans. So, no matter how tempting items you come across while shopping, be financially responsible and avoid splurging on unnecessary items.

Get the Best Deals

If you are shopping during the holidays or festive season, you will find plenty of festive and holiday deals. You will spend less, pay a lower interest rate, and repay your loan sooner.

Get Yourself a Personal Loan Contingency Plan

A personal loan contingency plan is one of the best ways to use a shopping loan. It will keep your finances in check and ensure you don’t get an extra bill once the repayment date arrives.

Conclusion

Shopping loans can be a great way of financing expensive items. Before you look for the perfect and convenient gaming console or gift for your children, planning and acquiring a cash loan online with low-interest rates that suit your requirements is best. While carrying out your financial preparation, you can shop without any stress. Go debt-free during holiday seasons by getting a low-interest loan to shop from mPokket. They even provide excellent loan options for individuals with low salaries. However, you must use the money wisely and avoid frivolous shopping. Thoughtful planning and diligent budgeting will promote good financial health.

A Comprehensive Guide to Shopping Loans for Smart Purchases

A personal loan is an invaluable resource everyone needs at some point in their lives. It can be for an emergency, a medical purpose, a wedding, a home repair loan, a necessary purchase, or a family vacation. If managed wisely and smartly, an emergency loan online can be the best way to avoid financial stress and ensure that all financial goals are simultaneously met. In the guide, we will share detailed insights on personal loans and every aspect of it.

What is a Personal Loan, and When Should You Consider It?

Before understanding effective ways of handling a personal loan, it is essential to understand “what is a personal loan and when should you consider it?”.

Personal loans do not require security or collateral and can be obtained with minimal documentation. The funds from these loans can be used for any significant financial need. They can help finance big purchases like buying or repairing a home or managing wedding expenditures. You can also consider taking a personal loan to eliminate high-interest credit card debt.

Here are some of the circumstances when you should consider a personal loan:

You are not qualified for a low-interest credit card.
When you are looking for the least expensive borrowing option.
When credit limits on credit cards do not meet your current borrowing needs
You have no collateral to offer.
When you require borrowing for a shorter period.

How can you Determine the Right Amount to Borrow?

Now that you have a basic idea of a personal loan and when to consider it, the second step will be understanding “How can you determine the right amount to borrow?” Knowing the exact amount you will need to borrow before you apply for a personal loan is crucial to managing your loan effectively. Once determined, you must calculate how much you can repay each month. Understanding that will help you stay on the right track and avoid any kind of financial strain.

Taking a loan out over a long time may reduce your EMIs, but you may be required to pay a higher interest over the entire loan term. On the other hand, if the loan tenure is too short, your EMIs can be too high, thus making you unable to make payments over time.

Why is it Essential to Have a Repayment Plan?

Several repayment plans are available so that borrowers can choose to make their payments more accessible. But before choosing the right repayment plan, we also need to know why is it important to have a repayment plan.

A repayment plan is essential for effectively managing debt and avoiding any kind of financial strain. Here are the following reasons why it is crucial:

Effective Budgeting: It helps you outline the monthly amount you must pay. This will allow you to allocate the required funds to repay without compromising essential expenses.

Reduce Stress About Paying Debt: Knowing that you have a proper plan for repaying your debts reduces your anxiety and stress levels.

Avoid Default: An appropriate repayment plan can help you stay on track with your payments, thus reducing the risk of defaulting on your loans.

Improve your Credit Score: Consistently following a repayment plan shows your financial responsibility and thus enhances your credit score over time. A higher credit score will lead you to more opportunities.

Save Money: With the right repayment plan, you can strategise to pay off the high-interest debts. This will help you save money on interest payments over time. It will help you become debt-free sooner and help you save on the costs of overall repayment.

Conclusion

Personal loans give you an upper hand in many urgent financial situations. But you must ensure a proper plan for repaying them on time. So, it is necessary to do adequate research when choosing a loan and pick the most appropriate one for your financial situation. Repaying your quick cash loans promptly will help you get a good credit score and help you maintain a credit history. If you want an easy cash loan option, mPokket can be your tested partner. It comes with competitive interest rates and thus can help you fulfil your financial goals conveniently and quickly.

Effective Ways to Responsibly Use a Personal Loan

Travel plans mostly happen randomly, and with little time left, people hardly get to save enough for their hotel bookings, flight tickets and other expenses. But does that mean you should cancel your travel plan or break your fixed deposit? Not necessarily!

Consider getting an instant travel loan instead of going for the awful plan. Let’s discuss in detail what makes travel loans an intelligent choice for your vacation plans, how they can help you explore without having any financial burden and the tips you need to remember when using a travel loan.

What Makes Travel Loans a Smart Choice for Your Vacation Plans?

Is work-life being too stressful for you? Are you burned out from work? A change of scenery is the cure for you. Extended trips can be a costly affair, and if you are a true backpacker or an adventure junkie, you will make the most brilliant move- picking the right travel loan. Now, what makes travel loans a smart choice for your vacation plans?

Covering Expenses, you Want

The instant travel loan online can be used for any travel purposes. It can be used for food, accommodation, flight tickets, excursions, activities, or anything else. You may use it for both domestic and international travelling.

Quick Loans

You can get your travel loans credited to your bank account almost immediately. You are not required to step out of the comfort of your home but can easily apply online within a few minutes. You just need to provide details like your city of residence, employment type, mobile number, or email ID. There might be other details, too, which will vary from one travel loan to another.

Minimal Documentation

In travel loans, the documentation process is very minimal. You do not need to ransack your whole house looking for difficult-to-get documents. Mostly, they will ask for minimal documents like income and KYC documents. You do not need to bring the hard copy anywhere. Simply upload their soft copy while applying for the loan.

Fixed Interest Rates

Personal loans for vacations often have fixed rates. This means you'll have a set monthly payment, making it easier to budget and manage your costs.

How can Travel Loans Help you Explore New Destinations?

Exploring new destinations does not always need to be expensive. It can be smooth sailing if you opt for the right choice. Here are a few pointers on how can travel loans help you explore new destinations.

Zero Stress with Planning

Planning an ideal vacation can be very stressful when there is financial stress. But when you know your travel loan is well managed, you can confidently execute your itinerary.

Customised your New Experiences

Travel loans let you personalise your trip, whether it's a luxurious escape, a cultural adventure, or an off-the-beaten-path journey. Your travel dreams are the focus, and the loan helps tailor the experience to your preferences.

Exclusive Offers and Discounts

Multiple financial institutions offer exclusive discounts by tying with certain vendors and providing additional perks like special travel packages and other travel-related services.

More Opportunities to Explore

Travel loans can help you explore and plan for previously impossible new destinations.

What are the Tips for Securing the Best Interest Rate on a Travel Loan?

Travel loans are the ultimate solution for travel aspirations. Here are the following valuable tips for securing the best interest rate on a travel loan:

Pay all your debts on time to raise your credit score.
Compare interest rates from different lenders online to find the best deal.
Lenders like applicants with steady jobs. Avoid changing jobs often to improve your chances of approval and get better rates.
Pick a shorter loan term to lower your overall interest payments.

Following all the tips will help you attain the best interest rate on your travel loan and you will know why should you think about using a travel loan for your next trip.

Conclusion

Do you need an instant loan online for your travel loan? A travel loan makes it a lot easier to plan your dream vacation. Make sure to use a loan eligibility calculator to check your eligibility for using a travel loan. This will allow you to plan your trip and help ensure that the overall costs fit your budget. The simple user interface of mPokket is a great option for getting easy access to travel loans. Using this trustworthy cash loan online provider will make your travel journey smoother.