The online lending space is growing at a rapid rate of more than 20% and is targeting a new target audience instead of the old ones.
Previously, the word “loan” was mostly associated with businessmen, while other people avoided taking loans or buying things on credit except in times of financial emergency. But today, the scenario is changing and taking a new shape, especially among millennials, who are more receptive to latest technologies and smartphones to avail easy loans or to buy things on credit. As a result, the trend of going online, whether to order clothes or food, to make payments or to transfer money, is growing at a rapid pace.
The total value of transactions in the digital payments segment amounted to $64,787 million for the year 2019 and is expected to grow at a rate of 20.1%, bringing the total amount to $134,588 million. by 2023, according to a report.
Along with this, the online lending space is also growing rapidly, serving the new target audience instead of the old ones. New startups are offering the “buy now, pay later” concept, making the loan process more personalized, immediate, cross-platform and transparent. More and more millennials are turning to these digital platforms and apps to avail hassle-free loans and become independent financial decision makers.
Here are some of the platforms that offer instant loans:
It is a mobile app-based digital lending platform that provides loans to any undergraduate or postgraduate student over the age of 18. The user only needs to upload the photos of the KYC documents and the student card. The loan amount can vary between 500 and 20,000 rupees. The user can choose the repayment period up to 3 months. The money will be credited instantly to your PayTM or bank account, depending on your needs. An interesting feature of this app is that it gives mCoins if you connect with your friends, thus allowing you to earn cashbacks.
Aimed at millions of borrowers in India, who are not yet part of the formal credit system, Shubh Loans is building a platform to facilitate credit reporting, lending and risk management. Shubh Loans enables lenders to access unserved and underserved market segments by providing real-time analytics and credit reports based on alternative data. It raised Rs 34 crore funding from Omidyar Network India and also received an NBFC license from RBI.
It is an online lending platform, offering instant loans – starting from Rs 8,000 up to Rs 2 lakh – low cost shopping EMIs and travel EMIs, acceptable in any India for online and offline transactions. The amount is instantly transferred to the bank account with a flexible repayment term of 90 to 365 days. It also offers payday loans at a rate of 24-30% per annum.
Founded by a group of IIM & NIT alumni, it is the first online remittance store for students in India. It offers to pay on EMI for students and online student credit card known as KrazyBee Student Paycard. The membership process is quite simple, users only need to register, upload documents and place the order. After a quick on-campus spot check, you become eligible for the loan and EMI with a small down payment.
It is a fintech startup that focuses on young Indians. They provide a smart, simple and transparent financial platform to redesign the financial experience of millennials. Users get a no-fee credit card, no-fee EMIs, and emergency cash loans once they become members. The card can be used anywhere for all transactions.
Although there are many options available to get easy loans, but before choosing one, the intended borrowers should know the repayment period, interest rate and penalty for not repaying the loan on time.
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