Get a Personal Loan Approval Faster Than any Bank in India | P2P Loans by Monexo28 June, 2018
Getting a personal loan in India can be a harrowing experience. Taking a personal loan from a bank of finance agency usually involves physical application through a representative, submission of documents and then waiting for various checks to be completed. While public and private lenders are putting up online application forms on their website, these remain rudimentary and only work as a simple query form in most cases.
What’s more disconcerting is the fact that even after providing all relevant details your loan application may get stuck in the bureaucratic limbo as every bank and financial institute has its own policy and regulations.
Getting faster personal loan approvals with Peer-to-peer financing
A P2P platform is the equivalent of Amazon.in for money lending activities. It is a marketplace where your loan is listed and people looking for investment can pick and choose it for funding. Peer-to-peer platforms like Monexo allow you to borrow money from other individuals through a secure and verified channel.
How are borrowers and lenders connected on a P2P platform?
Unlike banks where customers have to go through the same standard and lengthy procedure of loan application, P2P platforms match borrowers and lenders based on their profiles. The matchmaking is done through proprietary AI processing techniques which analyse the loan amount, rate of interest, tenure and various other points from a borrower's profile and compare the information with lenders looking for similar investments.
Who is eligible to get a P2P personal loan?
Almost everyone, since banks and NBFCs do not offer credit to borrowers without a collateral or high credit rating, and a majority of borrowers in India fall in-between these two categories. You only need to fulfil a few basic requirements like having a regular employment and a bank account with salary credit.
Even if your loan application was denied by a bank or non-banking financial company you can get a personal loan approval from P2P platforms like Monexo.
How a P2P marketplace is able to offer lower interest rates?
It is quite simple really and just like how Amazon offers lower prices on products sold through its portal. By removing the middlemen, a P2P platforms lowers the costs for processing your loan application while speeding up the disbursal process. For example, while interest rates charged by private lenders like Bajaj Finance and Fullerton India can be anywhere between 15 to 40 percent, P2P platforms like Monexo are able to offer interest rates as low as 12.98%.
What is the process for calculating interest rates on a P2P marketplace like Monexo?
Interest rates are calculated based on a risk-based pricing model which means the more the risk, the higher your personal loan interest rate. The good thing though is that P2P marketplaces like Monexo have their own scoring and pricing parameters for risk profiling of borrowers. So, a borrower can get a loan from a P2P platform even with a low CIBIL score.
Applying for your first P2P personal loan with Monexo
Monexo is India’s top P2P platform where you can get your loan approved within 4 to 24 hours successful application submission. Since the process is entirely online, your loan application is ready for submission within 5-minutes.
Here are the steps to apply for a personal loan with Monexo,
- Visit www.monexo.co/in to register as a borrower
- Fill the necessary information and upload the required documents online to complete your personal loan application
- Approve the quotation sent by Monexo after reviewing your online loan application to get your loan listed on the peer to peer marketplace
- Wait for lenders to fund your loan
- Receive the amount in the bank account that you have shared with Monexo
Monexo deducts a minimal fee from the loan amount as servicing fee. The fee amount is between 2-4% depending on your Monexo rating. The rating is given by Monexo, based on your credit history and documentation.
Ready to apply for your first P2P loan online? Visit the Monexo website to start your online personal loan application now.