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Fintech Unsecured Lending - Facts & Myths

Fintech Unsecured Lending - Facts & Myths

The amalgamation of finance and technology opened the pathway for many private financial institutions to launch digitally innovative financial products. The user experience enhanced with the advent of fintech and facilitated payments, lending, savings etc. on digital platforms like private apps and official credit websites.
Financial institutions and NBFCs in India promote app-based lending and this fintech concept has been actively accepted by many borrowers in India, in need of immediate finance for different purposes. However, there are certain facts and myths attached to fintech unsecured lending. Let’s uncover some myths and facts about digital lending for implementing safe financial activities online:

MYTHS:

Faster Returns: Though the digital lending services are faster than the traditional ones, faster returns are not promised on the lender’s side. The success and profits entirely depend upon the operational efficiency of the loan applications. Launching new digital apps for lending and expecting guaranteed profits in the initial phase can be a challenging task.

Location Barriers: Instant personal loan apps commit about speedy loan application, approval and disbursal from anywhere, anytime. However, its doesn’t stand to be true for locations where borrowers’ bank accounts are in regional and cooperative banks, which causes issues in loan disbursal and repayment.

Unlimited KYC Authentication: Paperless verification of KYC documents is super convenient for borrowers. Once the loan app is launched and the traffic starts populating in the app, it is difficult to manage the rush when you have a limited database. India is a country with a vast population. When many users submit their KYC details for verification on the loan app, the loan applications are often dropped due to the limited database to stack the KYC details. So, fintech allows unlimited KYC authentication is truly a myth.

FACTS:

Smart experience better than banks: Fintech has enhanced the level of user experience supporting top end financial services digitally – corporate banking, private banking, crowd funding, trading and lending. Partnering with fintech, digital wallet platforms such as Google Pay, Paytm, PayPal have emerged as an easy source of online payment.

Quality Check: Fintech firms are ideal to derive credit scoring of different borrowers as required by various financial institutions. This analysis of borrower’s creditworthiness simplifies lender’s decision making whether to sanction the loan or not.

Availability of smaller loans: Earlier, taking a personal loan felt like a burden which changed completely after fintech emerged. Now, there are exclusive instant loan apps giving small cash loans up to 1.5lakhs or more within 24hours. Sanction of small cash loans on the same day has supported many individuals and households during financial crisis.
 
Overall, irrespective of the myths and benefits, the fintech unsecured lenders indeed take a risk to offer an easy lending platform with a balanced business model. One that stands true to the borrower’s expectations and practically works in lending money just in the time of emergency.
 

SimplyCash

SimplyCash powered by Hero FinCorp is an instant personal loan app providing cash loans of upto INR 1,50,000 for both salaried and self-employed individuals. Driven by technology and fuelled by innovation, SimplyCash solves instant cash requirements of customers in just a few simple clicks without any physical documentation or meeting. The mobile app is available to users through all popular Android play stores like Google play store, Samsung store, Xiaomi store etc. With one of the most widespread presence, SimplyCash currently offers its services in over 90 major locations in India. Known for a seamless process, instant loan disbursal and transparent pricing - SimplyCash truly lives upto the expectations of being a 'Hero' product.  

Note: SimplyCash is a duly registered trademark and is a loan product offered, managed and operated by Hero FinCorp. Hero FinCorp Limited is a Non-Banking Financial Company registered under the provisions of Reserve Bank of India ("RBI") and is in the business of finance and lending.

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Accepted Banks:

ICICI BANK LTD HDFC BANK LTD IDBI BANK STATE BANK OF INDIA PUNJAB NATIONAL BANK YES BANK INDUSIND BANK KOTAK MAHINDRA BANK LTD

IDFC FIRST BANK LTD AXIS BANK BANK OF BARODA TAMILNAD MERCANTILE BANK LTD INDIAN OVERSEAS BANK INDIAN BANK RBL BANK LTD DEUTSCHE BANK AG CITY UNION BANK LTD FEDERAL BANK SOUTH INDIAN BANK STANDARD CHARTERED BANK CANARA BANK KARNATAKA BANK LTD CITI BANK BANDHAN BANK UNION BANK OF INDIA DCB BANK LTD DBS BANK INDIA LTD THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD DEUTSCHE BANK UCO BANK

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