Today, more and more people are relying on credit over cash for online and offline transactions. As per the RBI data, credit card outstanding amounts were as high as Rs 42,100 crore in the year of 2016. Ever since the digitization changed the lending process in India, increasing number of consumers are getting inclined towards a cash loan or credit for making immediate purchases. This is because credit/ loan is considered to be a better strategic choice especially in times of sudden or unforeseen expenses.
The rise of FinTech companies in India, which have combined financial services with the current technology, has made it possible for consumers to apply and avail loans in an instant. Today, there is absolutely no paperwork required while applying for a personal loan through online finance providers. This has also reduced the loan disbursal time which makes the loan borrowing faster and better. Unlike older days when loan approval and disbursal would take days, now with the help of digital lenders, the same loan gets disbursed into a consumer’s bank account just within few hours of applying.
An instant cash loan not only helps consumers to meet their needs during a financial crunch but also their wants to fulfill their desires.
Best way to Manage your Finances
In addition to this, a personal loan is the most sought-after loan in today’s world since it is an ‘unsecured loan’ which means you don’t need to provide any sort of collateral while applying for it. Also, one enjoys a complete discretion over how and when he or she can use the loan which makes personal loans even more alluring for consumers in today’s times.
The interest rates charged to the consumers applying for an instant personal loan by online finance providers is reasonable as compared to the traditional lending banks which is another plus point. Not only this, applying for loans online also saves them from the hassle of paying multiple visits to the banks and waiting in never-ending queues with numerous documents because who has time for that? This is why taking a personal loan can be really beneficial.
Read more: Here’s why you need to go for a personal loan?
Merits of Using Credit Over Cash
Here are few merits of using credit over cash:
- Protection against theft
Carrying around a lot of cash is not safe at all. If your wallet gets lost or stolen chances are you will never see it again. So, it is wise to use your credit just to be safe.
- Track your spending and plan your budget
Cash expenses are difficult to track but with online statements of credits it is easier to track your expenses. You can track when and where each purchase was made and thus categorize your spending and build a budget.
- Every transaction is online
Credit enables consumers to conduct transactions online which is much easier and hassle-free as compared to cash transactions.
- For big pocket purchases
If you are planning to buy something that costs more than your monthly salary, using your credit can be a responsible move.
- For emergency expenses
Credit/ loans help you to meet your unforeseen expenses. For example, if your refrigerator is broke, you can get a new one right away without having all the money in your bank account.
- To build your credit score
You might not be aware of this but not using your credit may hurt your credit score which can cost you while applying for loans or taking an insurance. This is because banks and insurance companies hit you with high-interest rates if you don’t have a good credit score.
You might have heard that no debt is good debt but if you plan your expenses and use your credit/ loans wisely, it isn’t anything to be afraid of. Rather using a personal loan/ credit can help households meet any sort of shortfalls such as home renovations, education fee, medical expenses, etc. The easy access to loans/ credits and affordable interest rates are helping consumers today to build a better life.
