Getting urgent instant credit has become pretty easy these days because of the fast loan apps. Apps offer quick loans at short notice for emergency needs. But it’s important to be aware of the potential downsides. In this article, we’ll discuss the pros and cons of using these urgent loan applications in India to help you make the right decision.

Pros of Using Urgent Loan Apps in India-

1. Convenient – The largest benefit of using apps like TrueBalance or KreditBee is that getting funds is a quick and easy process. Traditional banks often take days or even weeks to process a loan, but urgent loan apps will provide funds in minutes or a few hours after an application has been made. This would come in handy, in situations where you need urgent access to money such as in cases of medical emergencies or sudden travel plans.
2. Minimum Documentation – The traditional loans require proper documentation with proof of income, records of employment etc. However, applications like Nira and Branch require only the basic KYC documents like your PAN card and Aadhaar card, making it hassle-free and easy.
3. Flexible Loan Amounts – Whether you need a small amount of money or you are in need of a larger sum, apps like Kissht and Cashe provide flexibility in selecting the loan amount. You can choose the loan amount as per your repayment capability and hence, manage your finances easily.
4. Easy Application Process – Most loan apps like Navi and Fibe offer a user-friendly interface where one can apply for a loan directly from their smartphone. The application process is quite simple and involves just a few simple steps, including registering, filling out your details, uploading documents, and selecting the loan amount you require.
5. Opportunity to build credit – For those who have limited or no credit history, urgent loan apps can be a good way to start building credit. When you repay your loan on time with apps like Branch and Nira, it improves your credit score. 

Cons of Using Urgent Loan Apps in India-

1. High Interest Rates – The biggest downside of loan apps is the higher interest rate compared to traditional bank loans. Since the loans are unsecured and processed quickly they charge higher interest rate. Apps like Kissht and Cashe may have interest rates that can range anywhere from 18% to 36%, depending on loan amount. So it can be costly if you’re unable to repay the loan on time.
2. Short Repayment Tenures – Many apps have short repayment periods ranging from a few weeks to a few months. So it can be challenging if you require more time to repay the loan. Apps like Truebalance and Fibe may provide flexible in repayment but be cautious about the repayment deadlines.
3. Risk of over-borrowing – The convenience with which you get the access to funds can sometimes encourage over borrowing and take out more loans than necessary. This can result in large repayment amount if you’re unable to manage multiple loans and result in penalties.

Conclusion – 

Urgent loan apps will save you a lot of time and hassle but one should note the interest rate is higher, the tenure for repayment is short, and also impacts one’s credit score. If used responsibly and with full awareness of terms and conditions, urgent loan apps like Fibe can be a very helpful financial tool in times of need. Yet, one must always weigh the pros and cons carefully and borrow only what you can comfortably repay in order not to fall into a debt trap.