Whether you’re a budding entrepreneur or a working professional, financial struggles are consistent, no matter what you do. Although careful planning and budgeting can help mitigate the risks, they still cannot help avoid them completely
Evidently, this creates a demand for lending options or better said-a loan. In fact, several corporations have grabbed this as an opportunity to establish a new trade altogether-Fintech Businesses.
If you didn’t know this, a fintech corporation helps connect users who are seeking loans with private lenders, mostly online. Some of the common loans that most people seek include guaranteed tribal loans, installment loans, payday loans, invoice financing, and so on. More or less, most of these options are short-term loans and do not require many formalities. In this article, we shall be sharing more info about these common loans that you can avail of from the fintech corps. So, keep reading.
Payday Loans
One of the most popular products of fintech corporations is a payday loan. It is typically a short-term personal loan, termed for a maximum of 1 month. Notably, these loans also don’t carry a high value. You can avail of a payday loan valued anywhere between $100 to $2500, given that you meet the basic eligibility criteria.
Another noteworthy feature of payday loans is they are available round the clock, which makes it easier for anyone to take advantage of these loans whenever they need them. Plus, the process of loan origination to approval and amount disbursement only takes up about a day. Thus, making it one of the quickest lending options available.
As a business owner, it is difficult to wait for the money to arrive, when there’s an immediate cash crunch. For instance, there could be a breakdown that could bring your production to halt. Of course, you cannot wait for weeks or even days for your loan to arrive.
In such scenarios, it is rather better to seek a quick lending option that could get you out as soon as possible. And payday loans could make up the perfect option in such situations.
Guaranteed Tribal Loans
Another common short-term personal lending option is a tribal loan. Though there is no clear definition of these loans, the fintech corps explain them as a form of payday loan.
Notably, the most contrasting difference between a usual payday loan and a tribal loan is that the latter is offered by lenders who essentially operate from tribal lands. In addition to this, there are, however, other differences too.
The rate of interest and loan value also varies between a payday loan and a tribal loan. However, in most cases, the rates are found to be comparably lower than conventional payday loans.
Another noteworthy feature of tribal loans includes the no-collateral requirements. Yes, you read that right. For availing of a tribal loan, you don’t need to submit any security or collateral, thereby increasing the chances of loan approval despite owning no assets. Plus, there are also no credit checks from the lenders. They only need to ensure if you can repay the loan in time or not. And for this, they usually have a glance at your monthly income statement and expenses.
Installment Loans
Tribal loans and payday loans are essentially the shortest termed personal loans by far. But there are other short-term personal lending options as well. In most cases, the term of the loan depends on your income and the amount of loan you intend to borrow.
To put this into perspective, the higher the value of the loan borrowed, the longer would be its tenure. However, it is also noteworthy that for a short term loan, the tenure cannot exceed more than 2 years.
Moreover, since these loans are to be repaid in installments, as the name suggests, the value of these loans is also comparably higher than payday loans or tribal loans. You can easily borrow a loan amount up to $100,000 if you fulfill the basic requirements. The lenders usually don’t need to perform many checks on your credibility.
Invoice financing for businesses merchant cash advances, and other loans that extend between 2 months to 2 years are some of the most commonly offered options from a fintech corporation.
How to Apply for Personal Loans with Fintech Vendors?
By now, as you’re already aware of the lending options that a fintech corporation can offer, you might need to know about the application process. The fact that most of the aforementioned loans are easily available and do not require many formalities, does not mean that there are none at all
Every lender has to have some sort of credit checks on the borrowers before they can lend any loan.
To better understand this, keep reading
Look for a Money Lending Fintech Vendor
The very first step in order to apply for a short-term loan is to look for a money lending network or a fintech corporation. You need to know that these fintech corporations do not lend out loans but only help users connect with the lenders. It means you should be looking for a company that has more lenders enlisted and holds a good authority in the market.
Submit Basic Details
On reaching a money lending network website, you shall be prompted to fill in some basic details. For example, your name, date of birth, your active bank account, your monthly salary, and outstanding debts. The AI responder of the network would evaluate your details and pull up suitable lending options for you
Wait for Approval
Once you have a list of private lenders who can offer you a loan, it’s up to you which lender you apply for your loan with. Nevertheless, the complete process, as already mentioned, is pretty quick right from loan origination to approval and disbursement. So, post-application you won’t have to wait for hours for your loan approval.
The best part about applying for a loan online is that there is no paperwork involved. So, you can actually expect to receive your loan without much hassle. Nevertheless, it is still advised to borrow responsibly and not to over mine your resources.