The rapid progress of technology has left no facet of our lives untouched. Technology has made availing a business loan convenient and comfortable for all the borrowers, and at the same time, it has reduced the time taken to complete any given task. The small business owners generally find applying for an MSME loan one of the most arduous tasks with endless visits to the loan lenders.
When the business owner faces a cash crunch, then he generally doesn’t have spare time to go out and know the status of the business loan application. Or to keep providing new business loan documents. Now, the rapid integration of technology in the financial sector has made it easy to avail MSME loan schemes through smartphones. The business owner can apply for a loan and avail it within just a few taps on the mobile screen. Additionally, he can also compare different business funding options, as well.
Who are Online Lenders?
Online lending companies are NBFCs that offer a wide range of loan schemes for small business owners. NBFCs do have a physical office, but they conduct their operations through online channels, such as mobile phones and website. The business owner can apply for the loan within just a few taps, from the convenience of his office or home.
Additionally, NBFC follows a paper-less procedure where the applicant just needs to provide the scanned copies of the required documents online. If the credit profile meets the requirements of the lender, the application is approved within a couple of days, and the loan amount is disbursed directly into the applicant’s bank account within a few working days.
The NBFCs offer unsecured business loans, ranging from Rs. 1 lakh to Rs. 5 lakh. Their requirement includes business turnover of more than Rs. 10 lakh in the previous year. They offer different business loans, such as working capital loan, machinery loan, and capital loan. The applicant gets an extended repayment tenor of up to 24 months to repay the loan amount. The loan interest rate depends on the profile of the applicant. NBFCs also allow foreclosing the loan account before its tenure after the payment of few EMIs without any penalty.
Advantages of applying for a Loan through A Smartphone App
The rising popularity of smartphones and mobile apps have played a significant role in revolutionising the financial sector. The applicant can accomplish everything with so little effort through a smartphone. The following are the benefits of availing business loans with mobile Apps:
• Convenience: the applicant can be sitting at the office chair or the home when he can compare different loan products and apply for the suitable one.
• Flexibility: the applicant can apply for a loan in his leisure time. He can apply for a loan in parts, and there is no need to fill up the loan application again and again.
• Information: all the information related to the business loan is available at the fingertips. It only takes a few seconds to know the status of the business loan application online.
• Privacy: all the information and details provided by the applicant is safe and secure. The NBFCs have secure servers, thereby ensuring privacy and secrecy.
• Up-to-date Information: the applicant can always have access to up-to-date information on various loan products. He can also use the EMI calculator and business loan eligibility calculator to make an informed decision.
Saurav is a SEO professional having an overall experience of more than 7 years. He started his career with a famous digital marketing company as a SEO analyst and is now devoted to writing informative articles and blogs. Apart from this, Saurav has done Bachelor's degree in Computer Science.