Which Fintech Platforms Offer The Best Personal Loan Rates? Here's The Breakdown

Personal loans: While fintech platforms offer accessible and convenient loan options, borrowers should carefully consider the terms and compare offers to ensure they are getting the best deal

According to data from the RBI, over 59 per cent of personal loans disbursed by fintech companies go to borrowers under the age of 35.

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Personal Loans: Fintech platforms in the evolving Indian lending landscape are emerging as major players, especially in the realm of personal loans. Individuals in need of financial assistance for unexpected emergencies, vacations, or special occasions like weddings would turn to commercial banks. However, with banks sometimes denying loan applications, many are now exploring fintech alternatives. While fintech platforms offer accessible and convenient loan options, borrowers should carefully consider the terms and compare offers to ensure they are getting the best deal.

What is Fintech Platform?

A fintech platform leverages technology to expand access to banking services, typically through mobile apps or websites. These platforms make banking more accessible, allowing users to manage finances without visiting a physical branch. Recently, several fintech platforms have emerged, offering personal loans with a focus on ease and accessibility. According to data from the Reserve Bank of India (RBI), over 59 per cent of personal loans disbursed by fintech companies go to borrowers under the age of 35.

Advantages of Borrowing from Fintech Platforms

While fintech platforms often charge higher interest rates than traditional banks, they offer several advantages:

Smaller Loan Amounts: Fintech platforms typically provide smaller loans, with amounts as low as Rs 10,000.

Ease of Borrowing: These platforms cater to borrowers who may not meet bank criteria, offering a more straightforward and less restrictive application process.

Online Accessibility: The entire loan process is conducted online, making it convenient and time-efficient for borrowers.

Caution on Interest Rates

Despite the convenience, personal loans are unsecured, meaning there's no collateral at risk. However, it is crucial for borrowers to compare interest rates and fees across different fintech platforms to avoid paying excessive charges. Key factors to consider include interest rates, processing fees, and pre-payment penalties.

Required Documents for Personal Loans

To apply for a personal loan through a fintech platform, you'll need the following documents:

• PAN for KYC
• Address proof (e.g., electricity bill, bank statement)
• ID proof (e.g., voter ID, Aadhaar)
• Three months' salary slips
• Interest Rates and Features of Top Fintech Platforms

Here's a snapshot of interest rates and features offered by some of the leading fintech platforms in India:

Paytm

Facilitates personal loans from lenders such as Hero FinCorp, Aditya Birla Finance, and Tata Capital. Loan amounts range from Rs 10,000 to Rs 5 lakh, with the option to convert into EMIs.

Satya Microcapital

Provides micro loans ranging from Rs 45,000 to Rs 1.25 lakh, with a loan tenure of 2-3 years and a processing fee of 1.5 per cent plus GST.

KreditBee

Offers loans with interest rates between 17 per cent and 29.95 per cent per annum. Loan amounts range from Rs 1,000 to Rs 5 lakh, with disbursal times as quick as 10 minutes.

DMI Finance

Provides 100 per cent digital loans with attractive interest rates and quick disbursal. Pre-closure charges range from 2 per cent to 4 per cent, with loan tenures ranging from 3 to 48 months.

MoneyTap

Offers personal loans starting at 13 per cent per annum. Borrowers can access up to Rs 5 lakh and only pay interest on the amount transferred to their bank account.

Upwards by Lendingkart

Offers loans up to Rs 5 lakh with EMIs starting from Rs 2,500. Interest rates range from 18 per cent to 32 per cent per annum, with a processing fee of up to 2 per cent of the loan amount. The repayment period is between 6 months and 24 months.

Branch International

This RBI-registered NBFC offers loans up to Rs 2 lakh. Loan limits increase as the borrower builds a credit profile.

Paysense

Provides loans ranging from Rs 5,000 to Rs 5 lakh, with a processing fee of up to 3 per cent and a tenure of 3 to 60 months.

Groww Credit

Provides instant personal loans up to Rs 10 lakh with flexible repayment options from 3 to 60 months. The APR ranges from 13 per cent to 48 per cent.

Finzy

Offers personal loans with interest rates starting at 10.99 per cent per annum, with loan amounts ranging from Rs 25,000 to Rs 5 lakh and a tenure of 6 to 36 months.