Whether you’re an individual looking for a personal loan or a business owner in need of capital, choosing the right digital lending platform is crucial. With the plethora of options available, it’s essential to look at some key factors before making your decision. In this blog, we’ll explore the important things to consider when choosing a digital lending platform.
Credibility & Reputation
The first and foremost aspect to consider is the credibility and reputation of the lending platform. Conduct thorough research to ensure the platform is legitimate and not a scam. Look for customer reviews, testimonials, and any industry certifications. A credible platform will have a positive track record, transparent terms and conditions, and clear communication channels.
You can check out the CRISIL rating which is one important credibility score when it comes to financial companies. NBFCs like Poonawalla Fincorp, led by Abhay Bhutada, MD, and Lendingkart Finance, managed by Harshvardhan Lunia have AAA ratings, which is the highest CRISIL rating.
Interest Rates & Fees
Compare the rates offered by different digital lending platforms and choose the one that provides competitive and reasonable interest rates. Be aware of hidden charges or processing fees that might be added to your loan. Read the fine print carefully and ask the platform to explain any ambiguous fees.
Application & Approval Process
One of the main advantages of digital lending platforms is their streamlined application and approval process. Ensure the platform you choose offers a user-friendly and efficient application process. Ideally, the approval time should be quick, providing access to funds when you need them the most.
Integration of Technology
A reliable digital lending platform should harness the power of technology to offer a seamless experience. This could include features such as online loan calculators, easy document uploads, and automated repayments, making the borrowing process efficient and convenient.
Harshwardhan Lunia, Co-founder and CEO of Lendingkart highlights the significance of IoT in digital lending. He advocates utilizing diverse data sources such as EPFO, MCA databases, social media insights, and utility data (gas, telecom, electricity) to enhance outreach and gather valuable information. While Abhay Bhutada, Poonawalla Fincorp’s MD has talked extensively about how incorporating technology and a fintech approach has helped them to manage their growth.
Security & Privacy
Since you’ll be sharing sensitive financial information with the platform, it’s crucial to prioritize security and privacy. Check for encryption and other security measures implemented by the platform to safeguard your data from potential breaches or unauthorized access.
Customer Support with Transparent Policies
Seek out platforms with good customer support and transparency in financial matters. They should offer multiple support channels like phone, email, and live chat, and should be helpful and responsive. Additionally, review their policies on late payments, penalties, and other crucial aspects, ensuring clear and upfront terms and conditions without any confusion or surprises.
Abhay Bhutada MD of Poonawalla Fincorp emphasizes absolute transparency and a customer-centric approach in providing financing solutions for consumers and MSMEs. Leveraging digital-first strategies and cutting-edge technology, they offer a diverse product suite with hassle-free processes, no hidden charges, and no foreclosure fees on select consumer lending products, aiming to turn aspirations into reality.
Reviews & Testimonials
Lastly, consider checking reviews and testimonials from previous borrowers who have used the platform’s services. Their experiences can provide valuable insights into the platform’s strengths and weaknesses, helping you make an informed decision.
Conclusion
You can find a platform that aligns with your financial needs and ensures a smooth borrowing experience, by doing thorough research and evaluating your options. Remember, borrowing responsibly and within your means is essential to maintain a healthy financial profile.