In recent years, the way we apply for our loans has changed; personal loan apps have slowly replaced the traditional way we apply for loans. On one hand, we have traditional banks where the process is long, with extensive paperwork, multiple visits to the bank, and a long approval time. A loan app is an alternative that offers its users both speed and convenience. But it doesn’t stop there, there are multiple differences between the two. In this article, we will look into the key difference between traditional loan apps and mobile loan apps.
1.Application Process:
The application process of traditional loan applications vastly varies from the application process of mobile loan apps. The mobile loan app’s application process is faster compared to the traditional process. You can apply for the instant personal loan online at your home convenience. When it comes to traditional loan applications, you have to pay multiple visits to the bank, provide them with extensive paperwork and documentation, and fill out forms. On the other hand, cash loan apps only require your personal information, such as your name, address, income, and employment details. You also have the option of uploading your documents on the app instead of visiting the bank to submit the documents.
2.Approval Time:
You get a quick loan from mobile loan apps. Loans receive approval faster on mobile loan apps than traditional bank loans. With a mobile loan app, your loan application can get approved within minutes, while it takes several business weeks to get your loan approved via traditional bank loans. This is because mobile loan apps use AI, which processes your application, compared to banks, which employ people to process the application.
3.Loan amount and term:
Mobile loan apps offer smaller loan amounts compared to banks. The duration of the personal loans are also shorter. Banks provide larger loan sums, and their loan repayment duration can last years.
4.Security:
Fast cash loan apps promise security. Mobile loan apps are equipped with end-to-end encryption, which safeguards your information when it is being transferred. Banks, on the other hand, don’t promise the same safety as mobile loan apps.
5.Repayment process:
With Mobile loan apps, you can pay and repay the amount online. Moreover, you can set your mobile loan app to automatically deduct the loan amount from your bank account every month. Banks require you to visit the location and deposit the money. Moreover, instant loan apps may offer flexibility for repayment, such as early payment without penalties or extending the loan term, while traditional bank loans may not have such options.
6.Customer interaction:
Banks provide a more personalized loan experience where you can interact with the bank employee who will assist you with the loan application. If you have used a mobile loan app, you know there is minimum interaction with bank employees. A loan app is also now introducing a feature where you can interact with employees online via video calls and still have a personalized experience at your convenience.
In conclusion, while both traditional bank loans and a pay later loan app have advantages, you need to consider all the factors and choose between the two. Mobile loan apps offer convenience, speed, and accessibility, making them a good choice for those who require smaller loans with faster approval times.