Mobile loans can really provide an excellent alternative. Mobile lending is on the rise as people are becoming more and more comfortable using their cell phones to conduct important financial transactions like paying their bills, transferring money between accounts, or applying for a loan.
What is a Mobile Loan?
A mobile loan is a small, short-term loan that’s typically paid back over several months, weeks at the most. The fee usually amounts to about 10% of the total loan amount. They’re typically used as a short-term solution to bridge the gap until a full-length loan is approved. This is a great alternative to payday loans because the payments are a lot smaller, and the interest rates are far lower.
Why Choose a Mobile Loan Instead of a Payday Loan?
Compare the amount of money you receive from a payday loan with the amount you would get for a mobile loan. Check the interest rates, as well. Mobile loans typically don’t charge annual percentage rates. They have fixed interest rates and monthly payments. Payday loan s cost more in the long run. Consider this: The interest rate for a typical payday loan is in the 3-digits, while many mobile loans will still be interest-free for the first 12 months. Mobile loan s allow you to be in control of the amount of money you borrow. You choose the amount you need and the length of time in which to pay it back.
What do I Need to Apply for Mobile Loans?
You’ll need a checking account to which your salary or other income can be directly deposited. You also will need to provide your employer and/or income source and normal banking information, including your bank routing number.
Can I Get a Mobile Loan if I have Bad Credit?
Many lenders will still make loans to people with bad credit, but you may find the interest rates and fees a little bit harsh. It would be advisable to look around for those who make mobile loans for people with bad credit as they can benefit you. You will be required to present several documents at the lender’s offices, and these will include proof of address, utility bill, national identity card, and possibly a license.
The documents you need to fill in the mobile loan application form and to have with you when going to the loan officer for approval include:
- a valid government-issued ID,
- the counter ticket (if you are applying for the loan in your bank),
- 2 latest payslips,
- your income tax return or your Employee ID card,
- proof of address such as a utility bill and passport size photographs.
How Does The Process Of Mobile Loans Work?
A borrower can apply for a loan through the lender’s website. They will require searching for quick cash lenders. Then they need to fill in their personal details in the application form and submit them. Mobile loans are a form of secured loans. The approval process is simple and quick. You can apply to the lender’s website. Borrowers can also visit the lender’s branch office for an application. The application process is easy. They can submit the application form online and visit the lender’s office along with the required documents.
Are Mobile Loans The Future Of Digital Lending?
It is not a future for digital lending; it is the present and the best transaction facility. If the borrower can provide the required papers, they can get instant loans. Definitely, the popularity of mobile loans is increasing among borrowers. The application process is quick and convenient with online or in-branch processes. All you have to do is to select your lender.
Benefits of Mobile loans
Mobile loans typically extend credit to an array of credit borrowers. Thus, it has a wide target market. The approval process is simple and quick. Interest rates for mobile loans are usually higher in comparison to other types of loans.
You can get quick approval as mobile loans are processed faster than other forms of loans. You need to submit the application form and provide the required documents, and you can get your money.
Risks of Mobile loans
Personal information can be hacked easily. Also, a borrower can share information with people they don’t know. Hackers can misuse the information and get easy money. The payment process is not as easy as it requires additional steps. This is because the lender generates a digital transfer code to ensure the loan is paid on time. The advance rate of mobile loans is higher in comparison to other types of loans. Thus, the cost of debt is higher.
Alternatives for Mobile loans
Money transfers are a convenient alternative to instant mobile loans. The mobile transfer service is free of cost, and you can send money to anyone in the US for free. You can also send money anywhere in the world. This doesn’t involve a credit check.