Ease of digital lending has unveiled a plethora of opportunities for people to meet their financial needs, mostly the ones that are immediate. Such loan products are being taken for various personal reasons, be it to travel, for a wedding, or loans with smaller ticket sizes being taken as credit for mobile recharges and utility bill payments.
These new-age financial technology players are using alternate repositories, advanced methodologies, and emerging technologies such AI and Big Data for credit scoring and disbursements.
For almost all fintech companies that offer these instant loans, the process is similar, which includes entering your details on a website or app to check eligibility and how much you can get. You then upload documents, undergo a check and then get the money credited into your bank account. The time taken for the process varies for each app.
However, these are unsecured loans and the pay-back time for these loans is usually shorter with a relatively high interest rate that is often in double digits.
Here are some non-banking companies that offer short-term loans:
InCred is a new age NBFC offering bespoke loan products to consumers as well as businesses in India. Its product offerings include Personal Loans, Education Loans, SME Business Loans, and Two-Wheeler Loans. It offers small & medium business loans with terms meeting the specific needs of a borrower. It provides with simple and easy services such as Working Capital loans of up to 12 months, Business Loan (Collateral-free term loan) up to 36 months and Channel finances services benefitting its customers.
MoneyTap offers app-based consumer credit line. The â€śCredit Lineâ€ť means that the bank will issue a limit of up to Rs. 5 Lakh, without any collateral or charging any interest. Against this limit, using the MoneyTap app, consumers can borrow as little as Rs 3,000 or as much as Rs. 5 lakh and repay it as EMIs from 2 months to 3 years. The app connects with the banking systems to give them not only an instant approval but also a credit limit, depending on individual credit history with real-time data from CIBIL. MoneyTap claims to give customers an instant decision and instant access to money.
My LoanCare is an online loan marketplace, providing financial services and products. The digital platform connects borrowers with suitable lenders to find them their right loan product, matching with their needs and credit profiles. Borrowers range from entry-level workers and small businesses to high-net-worth individuals. These loans are usually taken for short term requirements. Generally, these are used for children education, marriage and other financial emergencies in the family. My LoanCare claims that the rate of interest on jewel loan is relatively low as it a secured loan for banks and NBFCs. They provide loans under various schemes like agricultural gold loan, EMI scheme, bullet repayment, and overdraft scheme.
Happy provides customized loan offerings to micro enterprise owners to meet their specific demands. It even offers micro business loans that start at as low as Rs 2,000 for durations as short as 30 days. Happy also provides a product called Recharge Loans These are ultra-short ticket and short-term loans, which the consumer can utilize to recharge for self, family and friends with an average ticket size of Rs 200.
This platform offers various kinds of loans without the need for credit cards or credit scores. ZestMoney also offers loans for travel, furniture, fashion, educational courses, etc. and works across e-commerce platforms like Flipkart, Amazon, Myntra, MakeMyTrip, PepperFry, etc through no cost EMIs.
PaySense also focuses purely on short-term loans, especially for working professionals. It has credit options ranging from Rs 5,000 to Rs 1 lakh. To determine a loan applicantâ€™s credit score and eligibility and for the documentation process, PaySense leverages India Stack.
Slightly more long-term, LoanTap claims to have one of the lowest EMIs in the industry with no charges on prepayment. Personal loan from LoanTap is an unsecured loan and doesnâ€™t require collateral as security except under special circumstances. LoanTap offers personal loans between Rs 50,000 to Rs 10 Lakh. However, the final loan amount is decided basis oneâ€™s eligibility and credit checks. The loan tenure is from 6 months to 5 years.