Let us first learn about what exactly is Digital Lending Apps. The meaning of lending, basically says about the act of giving money on credit to another person. The person who takes the money is known as Borrower. Now, why should one lend the money, as the one who will be taking the money will give the money with a fixed amount of predefined interest? Which means that the person who is lending the money will have a profit in terms of Interest.
The concept of lending has been in use since the times of Kings. They use to lend money to the lower-class peoples who used to be in need and charge interest in return. This concept is widely known to us in terms of loans for homes, cars, educations and personal use which banks give us. Now there is a new concept of the same. As everything is digitalizing we are now seeing the case of lending in the Mobile world also. We know have a number of digital lending apps.
If you remember earlier when we used to issue a SIM card, or open a bank account, we used to have some people at our home to verify the details. But now we have KYC, which helps in the same and makes the process of digital lending easier for the apps.
As we know that if the borrower who is not able to refund the loan in the said time, then the lender have the authority to recover the loan by taking over the borrower’s assets. There is more than one strategy which this Digital lending applies to.
Marketplace Lenders: In this type of digital lending activities borrowers and lenders are using a platform which is not having any kind of traditional banking facilities. But they can actually make out maximum out of these, as with these types of marketplaces, they don’t hold any guarantee of the lender nor the borrower, but they can communicate and based on their understanding they can work.
Now let us actually look at some of the apps with which we can actually lend money digitally and can help us when there are not many possibilities to go to the bank and get one approved and done because today also getting bank loans approved is one of the most hectic tasks.
With these apps, most of our paperwork goes paperless, and the loan gets approved by the E-KYC which was included by India Government recently. We can use Aadhaar details to actually get our loan approved by verifying our identity. Let us enlist the apps which give such functionality:
- Early Salary
Now let us talk a bit about these apps individually starting with Paysense.
Paysense: This is the first app which we are going to talk about on the Digital Lending Apps list. This App is one of the first apps from the list of the first set of apps which are bringing in these type of functionality in India also. The app promises a 4 step solution for a loan. You can login to their website www.gopaysense.com and then get an instant approval on the website, or alternatively, you can download the app which will be available on Play Store. Then you can select the EMI plan which you would like to take, and upload the documents for the e-KYC which will be the Aadhar card. After this still, you have to get some of the documents couriered to finally get your amount transferred to your bank account.
LoanTap: Just like any other app which is providing such services, this app also offers the same. They offer us loans based on our requirements and eligibility. They directly send us the loan amount to the savings account. After the loan, the next thing which many things are of the same interest. LoanTap offers us interest only payment scheme on the loan, which we can pay only the interest for a number of days we want, and after that, we can simply pay a huge amount of bullet repayment which will be towards the Principal Reduction and it will then calculate the new interest from the new total outstanding. This offers a much better way to pay the loan and might be more useful for users than the earlier app which we discussed the Paysense.
EarlySalary: This is another app with which we can get loans digitally. As per their website they can offer loans within minutes. The digital Lending app was developed in October 2015, and have its head office in Pune. They provide urgent money in terms of bridge loans, which are just for a tide over till we get the salary into our account. Many times we use to see people saying about the month end problems wherein we have to lend in some money to them, but now we can suggest this site, where within minutes people can get the loan for a short period of time.
All the three apps mentioned gives us a different type of functionalities. The Paysense gives us a normal loan where we can submit the pre-decided EMI each month. But with LoanTap we can take the loan, and then keep paying the interest every month, and when we have enough money we can pay our main principal amount. All the above two apps have been giving loans for a number of months, i.e., even above 1 year, but EarlySalary provides a quick cash for use till you get your salary in your account.
These were some of the apps and website wherein we can get the new digital lending facility in India also. What do you think about these apps do let us know in the comment section below? Also, let us know if you have any experience with these apps, and do you think to use these apps for your future use.