Today, the fintech industry is spearheading the digital evolution in the financial domain. As more and more people have started using the online services including payment of bills, investment in mutual funds, trading stocks, etc. there has been a considerable rise in the P2P platforms aka Peer-to-Peer platforms where you can get instant personal loans from the comfort of your home. However, a lot of people still don’t trust these platforms and prefer to get loans from traditional banks. The question is, is the apprehension towards the online platforms really necessary? Let’s find out.
P2P Platforms and Safety
Whenever a new financial product is launched in the market, it takes time for the people to get used to it. For instance, for a long time, people avoided using credit cards and debit cards as they didn’t think these were safe. However, today cashless payments are more popular than ever and most professionals have at least one credit card or debit card. The same analogy applies to P2P platforms. Although it’s a new type of lending system in which people can apply for personal loans online, it’s completely safe granted you select a trustworthy company that has a good reputation in the market.
If you want an affordable personal loan interest rate and instant disbursal of funds, then you shouldn’t be afraid of getting a personal loan from a well-recognized P2P lender. In fact, there are many reasons to prefer them over traditional banks:
The smart professionals of today’s generation prefer online transactions. So, they pay for a number of things with plastic money or online, including utility bills, mobile recharge, shopping (online and offline), etc. There are two main reasons behind it- it’s convenient, and it saves a lot of time. In the same way, applying for loans online is also super convenient. You don’t have to pay several visits to a bank, fill out long and cumbersome forms, arrange various documents, etc. In P2P lending, you can simply upload your documents and request for the loan amount you want to borrow. A representative pays you a visit at the day and time of your convenience to verify the documents, and that’s it! If all goes well, you can get the funds within 48 hours!
Loans Without CIBIL
The CIBIL report is one of the most important financial documents that you can have. It helps the lenders assess your creditworthiness and the associated risk. So, if your CIBIL score is high, then you can get a loan easily. On the other hand, if your score is poor, then the bank may refuse to approve a loan.
When an individual needs a personal loan on an urgent basis but their CIBIL score is not up to the mark, then P2P loans are often the best option. This is because there are many P2P lenders that have a more forgiving process for the loan approval. So, even if your CIBIL report doesn’t look good, you can get the money easily.
Affordability and Repayment Flexibility
P2P loans are usually more affordable than traditional loans. This is because they offer several options for flexible repayment. You can choose to increase or decrease the size of EMI over time or even increase the loan tenure itself. Furthermore, their interest rates are also lower than traditional loans. This is because the brick-and-mortar banks have a massive infrastructure and staff, and they also run the business from several locations (bank branches) which means they have to bear several expenses. P2P lenders, on the other hand, have few offices as their business is largely based online. So, they can afford to offer a competitive personal loan interest rate to their customers.
People are usually misguided about the new-age financial products, nothing else. So, if you are having trouble getting a personal loan from your local bank, or if you aren’t happy with the interest rate or repayment terms they are offering, feel free to check out your options on the Internet. You won’t regret it.
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