5 applications to consider for micro-loans this holiday season

5 applications to consider for micro-loans this holiday season

By Léandra Monteiro


  • Checkout
  • Covid
  • Holiday season

Now people can get funds efficiently and effectively at very low interest rates by applying for a personal loan with an app. Not only do these apps allow borrowers to submit loan application online, but they also help them digitally complete the entire loan process in a viable way.

As the country’s longest holiday season kicks off, Indian consumers are stepping up installment plans to purchase household items, even in offline stores. The popularity is increasing for these small loans which usually amount to less than INR 5,000 for employees and self-employed.

“We have seen an improvement in demand for credit since the second wave. While the second wave was mainly due to medical expenses related to COVID, we are now seeing a return to normalcy. At Smartcoin, we are quite optimistic about the holiday loan application. Over the past 3 months, we have seen disbursements and collections gradually return to pre-COVID levels. In fact, we’ve even exceeded our pre-COVID numbers in a few cases. There has been a 30% jump in holiday loan demand and we expect that to increase this quarter for categories like shopping, travel, education and home improvement. There is also an increase in travel-related loans, which were quite high before COVID. Today we see again that travel spending is peaking at 3-5%. We have served both employees and the self-employed and have seen loan applications for the purchase of cell phones, the purchase of furniture, etc. Another growing segment among micro-entrepreneurs is business renovation. So we are also seeing a steady increase in the number of queries, ”said Rohit Garg, co-founder of SmartCoin Financials.

Here are some apps that can help you get instant loans this holiday season:

SmartCoin: SmartCoin, a Bangalore-based app-based consumer loan startup that provides low-cost personal loans to underserved people in India. SmartCoin’s app-based lending platform offers instant lending options ranging from INR 1,000 to INR 1,000,000 up to 100% India-wide automation. To apply for a loan, you need to fill in a few details, upload a few documents and you’re done. The app has been very successful during the holiday season and helps those in need of instant cash. With the help of the app one can apply for different purposes like travel, shopping and personal needs for smaller amounts and even microcredit for small entrepreneurs. The Company aims to meet the credit needs of numerous independent micro-entrepreneurs, micro-traders and salaried individuals.

Features of SmartCoin

  1. Offers instant loans at low prices to micro-traders as well as to the self-employed and individuals
  2. Aim to provide accessible loans to our clients, especially those residing in Level II and III markets, while maintaining low default rates. So far, Smartcoin has disbursed over 300,000 loans to its 100,000+ users worth INR 500.
  3. One can avail a loan ranging from 1000 INR to 1 Lakh INR. Regarding repayment, you can pay your contributions at any time during the loan period which is from 62 days to 270 days.
  4. SmartCoin’s growth rate returned to pre-pandemic times by registering a user base of 5 million+ unique user downloads
  5. SmartCoin is a 100% digital organization with a loan disbursement network across the country, serving 17,000 PIN codes.

KreditBee: KreditBee is an instant personal loan platform for independent and salaried professionals. You can also use KreditBee loans even if 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 used up to INR 2 lakh.
  2. The interest rate is applicable at 0-2.49% per month. Loans range from Rs 1,000 to Rs 200,000. The tenure period ranges from 62 days to 15 months.
  3. KreditBee charges a one-time service fee upon integration.
  4. Small processing fees are charged for loans. Google rating is 4 stars.

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

Features of MoneyTap

  1. For employees only, the minimum wage should be INR 30,000 per month.
  2. A loan can be used easily with a 100% paperless process.
  3. You can use any amount from your available line of credit Make UPI transactions directly from your line of credit Interest rate from 13% per annum.
  4. The occupancy period can range from 3 to 36 months. Google’s rate is 4 stars.

CHECKOUT: CASHe was founded in 2016 by V. Raman Kumar, whose objective was to bring a formal credit system to millions of young generation Y employees who have been denied credit by traditional banks and financial institutions.

Features of CASHe:

  1. The loans range from Rs 10,000 to Rs 3,000,000.
  2. The duration of the credit varies between 2 months and 1 year.
  3. The loan request is 100% paperless.
  4. The amount is instantly credited to your bank account.
  5. There is no entry fee Minimum net monthly salary should be Rs 15,000 Google rating is 4 stars

PaySense: PaySense was founded in 2015 and based in Mumbai, it is a venture capital funded financial services startup. PaySense offers personal loan up to INR 5 Lakhs easily and quickly at your doorstep after downloading the documents. Features of Paysense personal loan. Loans are granted for a period of 3 months to 60 months. The standard processing fee is 2.5% of the loan amount. The flexible interest rate applicable from 13% per annum The salary should be above INR 18,000. Google rating is 3.5 stars. At the moment, Paysenses is based in one of the more than 50 cities we serve across India.

Features of the Paysense personal loan

  1. Loans are granted for a period of 3 months to 60 months.
  2. The standard processing fee is 2.5% of the loan amount.
  3. The flexible interest rate applicable from 13% per year.
  4. The salary must be greater than INR 18,000. Google rating is 3.5 stars.

READ ALSO: 2021 Report on the Digital Lending Landscape in India

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