Fast Personal Loans: An Alternative To Credit Card Loans?

There is a lot of pressure on individuals to increase lifestyle expenditures and inflation, not to mention wage decelerations. Not surprisingly, our country witnessed a sharp rise in the popularity of credit cards over the last two decades.

Nobody admits it, but many are caught in a vicious cycle of revolving credit. There are some credit card customers who are experts in choosing the best there is, use the special features of the cards and the benefits and end up saving money. But they are few and far between, while the rest (who try to copy them) fall flat and become increasingly entangled in high interest debts. This does not have to be this way. The recent past saw the formidable entry of alternative players into the playground and many of these companies have become instant hits among users, especially in metropolitan cities. Your fast personal loans are preferred even credit card loans today.

Comparison of credit card loans and personal loans

Credit card loans are useful only if you can repay the borrowed amount on time. By the time the maturity date is crossed, the interest rate triggers alarmingly. In addition to that, they will raise a not so small charge of late payment as well. The way you handle credit card loans is a direct indicator of your credit behavior, which can affect your credit score.

It is not easy to fight the temptation to use credit at your leisure and practice restriction, while personal loans do not offer this kind of room for maneuver or luxury. Lenders allow you to take personal loans only if they are convinced of your creditworthiness. The maximum EMI you allow is 30 to 40 percent of your monthly income, in a way that forces you to be cautious about your expenses.

The table below shows how one can save almost R $ 42,000 on a loan amount of Rs 100,000 by opting for a personal loan instead of a credit card loan, which is a substantial amount.

Personal Loans

Credit Card Loans

Tenure

Interest rate

EMI

Total Amount Paid

Tenure

Interest rate

EMI

12 months

14%

8,979

1,07,745

12 months

36%

10,047

You SAVE Rs. 12,810

24 months

14%

4,802

1,15,231

24 months

36%

5,905

You SAVE Rs. 26,483

36 months

14%

3,418

1,23,040

30 months

36%

4,581

You SAVE Rs. 41,854

Why are customers switching their loyalty from credit card loans to personal loans?

Getting a loan was a long and painful affair for many, not so long ago. This is the reason why people have opted for credit card loans indiscriminately despite the staggeringly higher interest rates. However, the new Fintech companies formed in the last five years have managed to change this perception, offering incredibly fast emergency loans and other similar financial products and services. The component parts that are considered as part of the eligibility and risk assessment are the applicants’ income, credit score, employment history and nothing else.

The main value offered by online loan providers is personalized loans at reduced interest rates. A person visiting the website of an online lender can complete the application form while chatting with the company official through the bot chat featured on their website. For example, fintech companies like Qbera reach potential customers by the time they enter the website and this speed is what draws people to this type of banking. The process is so simple that the money can be credited to the applicant’s account within 24 hours, provided all the requested documents are presented (proof of identification, proof of income / employment and bank statements).

You can say that technology is the real star here, thanks to the digital wave. Users can discover and access the best loan products online and lenders can check their solvency in seconds! Individuals who pay their IMEs and fees on time will be happy to know that they will be registered as “good credit behavior” and will work for you in the future in many ways. Being in the good books of the company will result in lots of benefits, such as more loan amount, lower interest rates, lower fees and charges and even more flexible holdings, because all companies go all out to retain quality clients.