7 Best Personal Loan Trends for 2020
1. Rising Competition
Before the digital age, applying for a personal loan was a tiresome process. Lengthy wait times, strenuous documentation, hectic procedures, all these made applicants feel bizarre about banks & loans. Only after acquiring sufficient documents & analysing the applicant's repayment capabilities, banks & the non-banking financial companies approved loans to customers. Today, the scenario is different. With rising competition, banks and financiers are improving their sales by making personal loans easy & accessible to all.
2. Digital Transformation
Earlier, to get a loan approved, there used to be long wait times along with numerous bank visits. Today it is all done in a click. With a smartphone in hand and available smart apps for instant loan approvals with low interest and no surety, getting a loan is as easy as buying groceries online. Time-consumption and tedious procedures are the words of the past. In the new age, everything is digital, and so is the loan process. Online personal loan application & process enables users to compare different loans, choose the best option & complete the entire application process in a click.
3. EMI Flexibility
Flexible EMI payment system enables applicants to pay loans on their terms. This system is the best fit for debtors who don't have regular or extra income.
There are 2 methods of EMI Loans
The loan is suitable for people who receive periodic incentives or payments. With this plan, customers can opt for a higher personal loan & start payment through regular EMI's. In this system, customers have the flexibility to reduce their EMI and interest based on the periodic income received. Bullet loan system uses a customized tool for loan application & repayment. Corporate employees have huge money inflows like incentives and bonuses which can be used to reduce loan liabilities.
The latest trend in personal loans is the flexibility it offers in increasing or decreasing their EMI amounts based on their financial dependencies.
Step down Flexi EMI plan
A step-down loan is a personal loan with higher initial EMI payments. After a defined period, the loan amount decreases & hence brings relief to the borrower. This method reduces the interest load substantially because the borrower is paying a higher principal amount. Step down personal loan is a perfect model for people with high income. High EMIs demands higher principal component payments. After a fixed term, the EMI amount declines and so the balance can be repaid with ease.
4. Repayment Methods
Waiting in long queues to make payments is now a word of the past. Customers can now avail online payment options like Standing Instruction (SI), Net Banking, Electronic Clearing Service (ECS), etc.
5. Attractive Interest Rates
The high competition in the personal loan sector has made the banks and non-banking financial enterprises charge the debtors with moderate interest rates. The benefit of online personal loan application is the interest rates can be compared over a wide base & the best option can be chosen.
6. Credit Score System
Credit scores share invaluable insights about your financial credibility. These scores are the ratings provided by the three main Credit Bureaus (Experian, Equifax, & TransUnion) The scores are based on your past repayments and financial situation. Credit score systems have made the entire loan process easy & better. For a faster loan approval today, all you need is a good credit score.
7. Online Lending Platforms
Online Lending Platforms are the biggest innovation to affect the personal loan market. They offer instant personal loans through apps and websites. People are highly interested & inclined towards online money lending and are opting to Fintechs rather than traditional banks.
Gold West Financial is one such online lending platform where people can get personal loans or personal line of credit ranging $10,000 to $100,000. There are numerous benefits to its customers.
Few of them are:
Lower interest rates
Flexible EMI tenures
A personal credit line
Gold West Financial is an online debt consolidation and personal loan management company that offers the most trusted and best-in-class services to its national clientele. Gold West Financial's fixed-rate personal loans have no prepayment penalty. Further, customers can have flexible repayment options and also consolidate all their high-interest debts into one new loan with a single monthly payment. Our online payment system is flexible & customers can get funds faster with lower monthly interest. We also give specialized assistance to our clients in getting their debt consolidation & personal loan plans approved by banks and financiers.
Gold West Financial – The Most Trusted Low Interest Personal