How online personal loans are helping first-time borrowers.

1. How online personal loans are helping first-time borrowers. _____________________________________________ Online personal loans have become a huge hit ever since their introduction. More and more young applicants and first-time borrowers have made such loan their ‘go-to’ option when they need quick cash loans. One of the main reasons for this is the fact that these loans usually don’t require you to have a credit history. With other finance solutions, a credit history is a must and this present an obstacle for individuals who have never borrowed before. Take for example Rahul. He had moved to Mumbai from Delhi 3 years ago and was working in a digital marketing company. Every year his friends planned to go to Goa but he could never go along as he never had the funds to cover the trip expenses. He didn’t want to borrow from his friends or ask his parents for money so one day he thought of applying for a personal loan. He was excited and was already planning the trip with his friends. However, to his disappointment, his loan application was rejected as he didn’t have a credit score. After this, he had given-up hope on ever going to Goa with his friends. Then one day he stumbled upon an ad while scrolling through his Facebook newsfeed. ‘Get up to 2 lakhs without a credit score - apply for your online personal loan today!’ At first he thought it was too good to be true but after a little research he found that there were a couple of lenders providing short-term online personal loans without the need of a credit score. He jumped at the opportunity and applied to 3 of these lenders. One of them even had an app through which he submitted his application. Within minutes he got a message from the app-based lender stating that his loan was approved and that the money would be transferred on the same day directly his account. He was overjoyed and told all his friends that he’ll make it for this year’s trip to Goa! Just like Rahul, there are thousands of first-time borrowers who have benefited from such online personal loans that use social worth score over a credit score. With such lenders, as long as you meet the minimum salary criteria and your social worth score is good, you will get your application approved.

2. Besides for this benefit, online personal loans generally also offer the following advantages: 1. No prepayment charges– allowing you to repay the loan in ways you are most comfortable minus any penalties for doing so. 2. High loan amounts– most lenders will provide you up to 2 lakhs. 3. Low interest rates– you can enjoy an APR ranging between 24 and 30 percent. This might sound like a lot but it translates into just 2 or 2.5 percent per month. That’s like buying your best mates a couple of beers. 4. Easy processes– unlike traditional loans that require you make branch visits and submit a stack of documents and fill an unending list of form, you can apply for online personal loan with just a few taps on the app. So if you don’t have a credit score and need quick funds, remember that an online personal loan is all you need. We hope this article has been helpful, good luck and all the best.