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5 apps to consider for micro loans this festive season

By Leandra Monteiro

October 22, 2021

  • Cashe
  • Covid
  • Festive Season

loans, digital, fintech, lending, kreditbee, Reserve Bank of India, RBI, StatistaNow people can effectively and efficiently get funds at very low-interest rates by applying for a personal loan with an app. Not only do these applications allow borrowers to submit an online loan application, but they also help them digitally complete the whole loan process in a viable manner.

As the country’s longest festive season gets underway, Indian consumers are ratcheting up installment plans to purchase household items even from the offline stores. Popularity is swelling for these small-sized loans that typically amount to less than INR 5,000 for the salaried and self-employed individuals.

“We are seeing an improved demand for credit since the second wave. Whereas the second wave was mostly on the back of COVID related medical expenses, now we are witnessing things returning to normalcy. At Smartcoin, we are quite bullish on the festive loan demand. In the past 3 months, we have witnessed that disbursals & collections are gradually coming back to the pre-COVID level. In fact, we have even exceeded our pre-COVID figures in a few cases. There has been a 30% jump in demand for festive loans and we are expecting this to go up in this quarter for categories like shopping, travel, education, and home renovation. There is a jump in travel-related loans as well, which were quite high before COVID. Now we are again seeing travel-related expenses witnessing a 3-5 % high. We have been catering to both the salaried as well as self-employed individuals and have seen loan inquiries for buying mobile phones, buying furniture, etc. Another rising segment amongst micro-entrepreneurs is business renovation. So, we are witnessing a steady uptick in the number of queries there as well,” shared Rohit Garg, co-founder, SmartCoin Financials.

Here are a few apps that can help you to get instant loans during this festive season:

SmartCoin: SmartCoin, an app-based consumer lending startup based in Bangalore which offers small ticket personal loans to the underserved in India. SmartCoin’s app-based credit platform offers instant credit options starting from INR 1,000 to INR 1, 00,000 through 100% automation at a pan-India scale. To apply for a loan, you need to fill in some details, upload a few documents and you are done. The app has seen a lot of traction during the festive season and helps those in need for instant cash.  With the help of the app, one can apply for different purposes like for travel, shopping, and personal requirements for smaller amounts and even for micro credit to small entrepreneurs. The Company aims to address the credit requirements of numerous self-employed micro-entrepreneurs, micro-merchants and salaried individuals.

Features of SmartCoin

  1. Offers small-ticket personal loans to micro merchants as well as self-employed and salaried individuals
  2. Aim to provide accessible loans to our customers, especially those who reside in Tier-II and III markets while keeping default rates low. Till now, Smartcoin has disbursed more than 300,000 loans to its 100,000+ users worth INR 500 cr.
  3. One can avail of loan ranging from INR 1,000 to INR 1 Lakh. As far as the repayment is concerned, one can clear his/her dues anytime during the loan duration that is 62 days to 270 days
  4. SmartCoin’s growth rate has gone back to pre-pandemic times by clocking a user base of 6 million + unique users downloads.
  5. SmartCoin is a 100% digital organization with a loan disbursal network across the nation, serving 18,000 pin codes.

KreditBee: KreditBee is an instant personal loan platform for self-employed and salaried professionals. You can also use KreditBee loans, even though you haven’t taken out a loan yet, or don’t have a credit card. KreditBee offers three types of personal loans for customers in India.

Features of KreditBee

  1. A personal loan can be availed up to INR 2 lakh.
  2. The interest rate is applicable at 0-2.49% per month Loans range from Rs1,000 to Rs200,000. Tenure varies from 62 days to 15 months.
  3. KreditBee charges a one-time service fee while onboarding.
  4. A small processing fee is charged for loans Google rating is 4 stars.

MoneyTap: MoneyTap offers loans up to INR 5, 00,000 & pays interest on the exact amount you withdraw from your MoneyTap balance.

Features of MoneyTap

  1. For salaried employees only, the minimum salary should be INR 30,000 per month.
  2. A loan can be availed easily with a 100% paperless process.
  3. You can use any amount from your available credit line Make UPI transactions directly from your Credit Line Interest rates starting from as low as 13% per annum.
  4. Tenure can range from 3 to 36 months Google rate is 4 stars.

CASHe: CASHe was founded in 2016 by V. Raman Kumar, whose goal was to bring a formal credit system to millions of young salaried millennials who were refused credit by traditional banks and financial institutions.

Features of CASHe:

  1. Loans range from Rs 10,000 to Rs 3,00,000.
  2. The credit period varies between 2 months to 1 year.
  3. The loan application is 100% paperless.
  4. The amount is instantly credited to your bank account.
  5. There are no foreclosure charges The minimum net take-home monthly salary should be Rs 15,000 Google’s rating is 4 stars

PaySense: PaySense was founded in 2015 and based out of Mumbai, it is a venture-backed, financial services startup. PaySense offers a Personal Loan up to INR 5 Lakhs easily and quickly at your doorstep after uploading the documents. Features of Paysense Personal Loan. The loans are given for a duration of 3 months to 60 months. The standard processing fee is 2.5% of the loan amount. The flexible interest rate applicable starting from 13 % per annum Salary should be more than INR 18,000 Google rating is 3.5 stars As of now, Paysenses is based in any one of the 50+ cities we serve across pan-India.

Features of Paysense Personal Loan

  1. The loans are given for a duration of 3 months to 60 months.
  2. The standard processing fee is 2.5% of the loan amount.
  3. The flexible interest rate applicable starting from 13 % per annum.
  4. Salary should be more than INR 18,000. Google rating is 3.5 stars.

ALSO READ: Digital Lending Landscape in India Report 2021

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