Getting loans has become easier than ever due to the rise of online loan apps. Though traditional loan-taking routes still exist, people are increasingly moving towards online loan apps because of their convenience: hassle-free application process, quick approvals and disbursement of funds.
If you are planning to take a loan but aren’t sure which type of loans are available on the online loan app market, take a look at this article to know more.
Types of loans available on online loan apps:
- Collateral Loans
A collateral loan is when you pledge an asset in exchange for a loan. It is also called a secured loan. There are many online apps that offer different types of collateral loans. Some major types are:
– Gold Loan: Today, you can easily apply gold loan online through a gold loan app. The loan amount is calculated based on the weight and purity of the gold.
You have the option of visiting the lender’s physical branch to submit the gold, or you can choose the ‘gold loan at home’ option, where an authorized person will visit your house to collect the gold items.
– Loan Against Property: A Loan against property is a secured loan that allows you to borrow money by pledging your property. The property can be land, commercial space or a home. It differs from lender to lender, so make sure you learn about the type of assets eligible for a loan before downloading the app.
- Non-Collateral Loans
Non-collateral loans are unsecured loans where you do not have to pledge any assets to borrow money. However, you need to prove your creditworthiness to get an unsecured loan.
Business Loan: You can easily apply for small business loan through a business loan app. One great thing about unsecured business loans is that the hassle free with minimal documentation.
MSME Loan: You can even find apps that cater to specific business needs. For example, if your business falls under the MSME category (Micro, Small and Medium Enterprises), you can apply for an MSME business loan through an online loan app.
Things to keep in mind before downloading a loan app:
– Know your loan requirements
– Verify the credibility of the loan app
– Learn all the costs involved in taking the loan (interest rate, APR, other fees/costs, etc.)
– Make sure the loan app is compliant with existing government regulations.
The financial sector is developing rapidly and borrowing money has been made easier than ever. Today, a gold loan, business loan or even an MSME loan is easily available through online loan apps. Whether it is a collateral or a non-collateral loan, there is an online loan app for all your loan needs.
However, it is important to note that the rest of the things about taking a loan remain the same. That is, you need to read the terms and conditions carefully, know all the costs involved, verify the credibility of the lender, and most importantly, have a repayment plan ready to borrow responsibly.