7 Personal Loan Apps Emerging In This Fintech Boom

Fintech is a combination of two dynamic words: finance and technology. Over the last few years, it has evolved to make financial services more efficient. Fintech companies have positively impacted various sectors of banking – from payments to lending, from insurance to asset management – and are increasingly growing in popularity.

There are various factors involved in making fintech the biggest revolution since the Industrial revolution. In 2008, after the Great Recession, many people harboured a feeling of distrust towards traditional banks, so fintech was a welcome change.

With easy access to smartphones and the internet, customers expected their banking experience to be convenient and comfortable. Fintech took care of that quite comfortably. The COVID-19 pandemic also contributed to the success of fintech. With social distancing being the new normal, people were apprehensive about visiting banks and financial institutions and preferred digital banks over traditional banks, adding to the fintech boom.

Under the fintech umbrella, personal loan apps have emerged as the second-top vertical in financial services after online payments. We bring you a list of personal lending apps that are emerging in this fintech boom:

1. MoneyTap (Vietnam)

• Credit limit is from 3,000,000 VND up to 50,000,000 VND
• Interest rate starts from 22-35% per year
• Loan term starts from 3 months to 36months
• No collateral or guarantors

MoneyTap is Asia’s first app-based credit line for consumers, offered in partnership with FE Credit. MoneyTap launched the concept of a credit line in February 2019. Customers can borrow any amount as and when needed, up to the credit limit at any time and from anywhere. The best feature of MoneyTap’s credit line is that interest is charged only on the amount used and not on the approved credit limit. The line of credit gets automatically replenished as you keep repaying the borrowed amount. MoneyTap’s personal line of credit stays active for a lifetime, and hence it’s the best tool to access quick funds in case of emergencies.

2. Tala (Philippines)

• Credit limit from 1000 Peso to 20,000 Peso
• Service fee is 11-15%
• Loan term is from 21 days to 1 month
• Approval within a day

Tala is an international microfinance company that operates in several countries through a mobile app. It offers financial services to a million customers across the world.

3. Viva Payday Loans (USA)

• Personal loan amount of $100 to $5000
• APR is 5.99% to 35.99%
• Repayment period ranges from 90 days to 6months

Viva Payday Loans is a top-rated payday loan app. This app provides instant loan approvals and next day disbursal. The entire loan application process is online and can be completed within 5 minutes.

4. ExtraLend (USA)

• Personal loan of $100 to $3000
• Repayment period of 6 to 24 months
• Cash is disbursed same day or next day
• Huge database of lenders, so high chances of getting a loan
• Interest rate is determined by the respective lender

Extralend boasts of a huge database of lenders. It is a platform that connects borrowers to lenders who offer unsecured loans with repayment tenure between 6 and 24 months. The loan application process is simple and is done completely online.

5. Credy (India)

• Personal loan of upto Rs. 100,000
• Flexible tenure and interest rate
• Approval in 1 minute and disbursal in 48hrs
• Entire process is digitally done on the app

Credy is one of the fastest personal loan apps. It approves loans within minutes and disburses loans within 48 hours. The loan application process is instant and entirely digital.

6. MoneyLion (USA)

• Get a loan of upto $1000
• Flexible tenure and interest rate
• Helps you to build credit

MoneyLion is unlike any other personal loan apps on this list. The unique thing about MoneyLion is that it gives you a chance to build your credit. When you get a credit-builder loan from MoneyLion, your repayments are reported to the major consumer credit bureaus. When you establish a strong repayment behavior with consistent, on-time payments, you improve your creditworthiness and establish a strong credit history.

7. PaySense (India)

• Loan amount ranges between Rs. 5000 to Rs. 5Lakh
• Interest rate is affordable at 13%
• Repayment period is of 3 to 6 months
• No collateral required
• Application in 2 mins on the app
• Self-employed and salaried professionals are eligible for a loan

PaySense offers personal loans to salaried as well as self-employed professionals. The application process is easy and quick. The PaySenseapp allows you to choose an auto-debit option for your monthly payments, making it easier to repay the loan.

Image credit- Canva