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How to choose the best fintech for credit needs?

Jan 8, 2021 10 min read

How to choose the best fintech for credit needs?

If you think applying for a loan is as tedious and draining as it was a decade ago, you might want to hold that thought. With Fintech and technological advancements in Indian Banking system, the credit needs are met faster and more efficiently than ever before. However, if you are confused about which Fintech is the best to fulfill your credit needs, there are a few things you need to keep in mind. While choosing a digital lender, you will come across a lot of lucrative deals but it is important to do your bit of research before finalizing any one of them.

Here are a few things to give you a heads up of what should you consider while choosing your fintech lender. In this article we will discuss at length these factors; Service, Security, Customer Experience, Instant Personal Loan Amount Disbursal, After Loan Service and Credit Profile. Before we get into the discussion, we must look at the fintech lending scenario in India and how it has contributed to the ease of loan disbursal to the customer.

What is the fintech lending scenario in India?

Since Fintech gained an extreme popularity post 2015 in India, people have been curious as to what these are and how has it changed the lending scenario? To answer these questions quickly for you we would say that fintech has brought along a technological revolution in the Indian Banking System and lending specifically has become a lot easier. The customers being at the core now have the opportunity to avail loans quickly and easily without spending a lot of time standing in bank queues for clearance. The real-time loan disbursal has changed the lending scenario in India and it continues to grow in every part of the country.

Factors to Consider while Choosing Fintech for Loan Requirements

Applying for a loan can be exhausting in case you are applying offline, however with digitization in the banking sector and advent of Fintech, applying for a loan online has become hassle-free, easier and quicker. While choosing a fintech to meet your credit needs, there are a few very important factors that one must consider. Let us have a look at some key features to spot while choosing fintech for your credit requirements:

  • Services

As basic as it sounds, having a good look at what services a fintech offer makes a huge difference in determining whether or not one should apply for a loan with them. When we talk about services, we have to look at the lending services, customer support, ease of loan repayment, flexibility and much more. If you encounter a fintech that lacks customer support or hides the charges applicable on your loan amount, this is a red flag. Always makes sure to do your bit of research before applying for a loan with any lender.

  • Security

We’ve already talked about the services that a Fintech lender must offer but it is equally important to consider that your lender keeps your sensitive information secure and that they have a robust system to stop security breach. When you apply for a loan, you tend to share sensitive information such as your personal details and bank details, a Fintech must have top-notch technology to audit and keep your data safe.

  • Customer Experience

Although in the banking industry, customer experience had not been a priority for a long time, however with technology coming in, the scenario has drastically changed and it gets better with time. The customer should be the center of all the services, whether it is via app or any online mode, you should be able to get your request processed quickly, easily and smoothly. In case of any doubts or queries, you must have a 24/7 support system for your concerns.

  • Quick Loan Amount Disbursal

Gone are the days when your loan approval would take a few business days. Now technology has taken over the lending process and the loan process has become quicker. When looking for a fintech lender to meet your credit requirements, make sure that they offer hassle-free, quick loans with minimal documentation. In such cases, your loan amount is credited in your account within a few minutes.

  • After Loan Service

It just doesn't end with loan amount disbursal these days. Fintech offers exciting offers and deals to their customers, make sure that your lender has an excellent record of that so that you can enjoy these benefits at all times. There are personalized offers tailor-made for you exclusively, make sure that you keep them in consideration as well.

  • Check your credit profile

Of course, before applying for a loan you must check your credit profile. Make sure that your credit profile is strong to get an easy loan and amazing deals. Pro tip: If you apply for a loan with too many lenders, your credit score might get affected. Also, if you have any late payment records, your chances of getting a loan decrease. So refrain from doing that.

Bonus:

These are a few major differentiators to consider when applying for a loan. But as a perk for you, some lenders help you with the comparison all by themselves and do a full credit assessment for you beforehand.

FAQs

  • What are fintech lenders?

Ans. Fintech lenders are the lenders who disburse out loan amounts with latest financial technology streamlined to make the process efficient, safe and quick.

  • How much time do Fintech need to process loans?

Ans. Fintech usually disburses loans in real-time, however, there are certain credit limits attached to it. Each fintech has its own set of rules, hence do your research before applying for a loan with any of them.

  • How is fintech changing the loan process?

Ans. Applying and obtaining a loan has become a lot easier. Introduction of technology has helped leverage customer experience making it seamless and smooth.

  • Can Fintech tie up with banks?

Ans. Yes, many fintech tie up with banks to bring personalization at your doorstep. They also come with great offers and deals as a part of their tie ups.

  • Do fintech consider the credit score of a customer before giving loans?

Ans. Yes Fintech considers the credit score of the customer while assessing the credit limits of a customer.


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