4 Things to Check Before Borrowing on an Online Loan App

Thanks to advancements in modern technology, anyone looking for a personal loan today is not only spoilt for choice (in terms of loan places online) but also gets to enjoy a faster and more streamlined application process. Many banks, NBFCs and other personal loan providers already have an online presence, which means that you can avail of online loan services using a desktop/laptop. But today, there are even online loan apps that take it a step further. When you say “app”, you’re usually referring to a mobile application on your smartphone. So, online loan apps are also called mobile loan apps. Using such an app, you can apply for personal loans on the app itself, which just needs to be downloaded on your smartphone or tablet.

Online loan apps are a boon for those who prefer smartphones to a laptop/desktop, and for those who are looking for a simple and lean application process. With a mobile loan, the entire process from registration on the app to loan disbursal happens online, on your phone itself. But before you borrow through an online loan app, here are 4 things you need to do:

1. Make Sure it’s Trustworthy

There are many things you must do before you apply for a loan from an online loan app, or even download such apps, for that matter. First, you need to ensure that the company is a legal and authorized lender and that it’s still in business. You don’t want to download an app only to find out that it shut down operations a while ago, do you? Research about the app and its parent company and read reviews on trustworthy sources like Google Play. You will get a real picture of how simple and easy-to-understand the application process is, and whether the app delivers what it has advertised.

2. Read up on App Permissions

It is a good idea to read up on the privacy statement on the app and see if you’re okay with it before you start using any online loan services. Once you’ve installed the app, it will ask for a series of app permissions. For example, it may request access to your camera and phone gallery. It may also request access to your phone contacts and locations. Make sure you read the corresponding explanation given and proceed only if you’re comfortable. If you’re not, it’s perfectly fine to limit the permissions you give and check the privacy statement again.

3. Compare Rates Before You Proceed

One big advantage of borrowing from a mobile loan app or any online loan app is that there’s absolutely no manual intervention involved. You don’t need to speak to a loan officer or visit a physical bank branch for a personal loan. You can apply for one right from your phone, from the comfort of home. In the process, you can also compare interest rates across a range of mobile loan apps and other online loan services. This may help you find a personal loan offer that’s best suited to your requirements, maybe with a low rate of interest as well.

4. Check the Processing Time

With online loan apps, another major advantage is the quick processing time, whether it’s the application process or the disbursal of your loan funds. The app will let you if you’re eligible for a loan almost instantly. After your loan application has been approved, you can receive the loan funds in your bank account within minutes or a few hours, depending upon which online loan app you decide to go with. It is recommended that you read up on the processing time of all the online loan apps available and see which one suits you.

In Conclusion

While we all know the advantages that come with borrowing from an online app, the above points are things you need to check irrespective of who your personal loan lender is.  If you want to check out a good online loan app, KreditBee is an option you can consider. Apart from their easy-to-understand process and hassle-free, their application process is also 100% online. All you need to do is download the app, complete your profile, and leave the rest to us. If you wish to learn more about our personal loans, write to us at [email protected] or simply call +080 44 292 200.