Both instant personal loans and traditional personal loans are unsecured loans, so they do not require collateral. Both their primary purposes are to provide financial assistance to meet your needs without redeeming your savings and investments.
An instant personal loan is an online financial tool to help you get instant cash when the need for money is urgent, whereas a traditional personal loan is a standard way of acquiring unsecured loans, which involves an extremely time-consuming process. To apply for an instant loan, you will need to use an instant loan app.
Although both loans are easily available in the loan market and have the potential to offer you financial assistance in times of difficulty, loans acquired through an instant loan app give you extra advantages over the conventional method. However, which one should you opt for depends on your requirements.
Difference between instant personal loans and traditional personal loans
We have prepared a list of differences for you to make an informed decision while applying for a personal loan.
Simplicity
The best part about acquiring a personal loan from an online loan app is that it is simple to use. Anyone, regardless of an understanding of the technology, can navigate its interface. You will need to download the app on your smartphone, create an account, fill in our details, add your bank account details, submit relevant documents, and click the Submit button. You can easily keep track of your loan status on the app itself.
Whereas a traditional personal loan requires you to visit one of the branches of your preferred lender, experience the hassle of standing in queues, filling the application form, and submitting documents are all lengthy and difficult to follow.
Loan disbursal
Both instant personal loans and traditional personal loans are unsecured loan facilities provided to salaried and self-employed individuals to satisfy their financial needs. However, there is a major difference when we talk about disbursal time. If you apply for a personal loan through an online loan app, it will hardly take minutes for the loan to get disbursed, whereas a traditional personal loan could take from 4 to 5 workings to get disbursed.
If you need cash on an urgent basis, it would be wise to apply for a personal loan through an instant loan app as it caters to your urgent requirement, but if you can wait for a few days, you can opt for a traditional method.
Digital processing
Instant personal loan app ensures that the loan application process is 100% online, making it a convenient and paperless exercise for the borrowers. From applying to the disbursal of the loan, every step involved in the processing of a personal loan is online.
Unlike the traditional way of applying for an unsecured loan, the approval process is conducted by automated software, which ensures a safe process. It best works in favor of people who are short of time and need money urgently.
Access to information
The advent of the internet has made accessing information, such as searching your answers on Google, easy and has become inherently common among people. Nowadays, lenders have their web portal which you can visit to get information about their eligibility criteria, interest rates offered, and documents required.
Instant personal loans are available online, and any information regarding them can easily be accessed without the need to directly contact the lender. In the case of a traditional personal loan, you will have to visit each lender and seek information accordingly.
Absence of paperwork
Another advantage of an instant personal loan is that it requires no paperwork at any stage. You conveniently apply for a personal loan from the comfort of your home, provided you have access to the internet. You will have to register on your lender’s website or their online loan app, fill out your details, submit documents, and get access to an eligible loan amount almost instantly.
The documents required include identity proof, address proof, age proof, and income proof. However, in the case of a traditional personal loan, it requires a lot of paperwork.
Conclusion
In comparison, an instant personal loan is the best way to get instant cash without the need to personally visit your lender and follow up a lengthy application process. It has a smooth application process and disburses the loan within minutes, almost instantly.
If you are planning to apply for a personal loan, install Fullerton India instant loan app that ensures transparency, convenience, and speed.
More Stories
Are you aware of the 5 benefits of taking a Personal Loan?
Why Choose Personal Loan to Fund Your Business?
SBI Card launches video KYC facility, can now complete the process sitting at home