Best Instant Loan Apps 2024 in India

Best Loan App in India 2024

Hello friends, in this article, we’ll discuss about a very important thing, that, as of today, which instant loan app is the best. These are some very famous instant loan apps, I’ve presented their screenshots in front of you.

Best Loan App in INDIA 2024

Best Loan App in INDIA 2024

But if you go to the Play Store at this present, then who knows how many instant loan apps are there filling the space. Okay, there’s one thing that I’ll tell you, that you open Play Store today, or any other app. 

Take Paytm, or take Google Pay, in a way, take Amazon, take FlipKart, apart from them, any apps that you can find out there, all of them are in the chase to compel you to take their personal loans, claiming it to be the best.

Okay, apart from this, take Hero, take LNT, such companies who have nothing to do with finance sector at all, even they are in the business of giving personal loans. Okay, now understand this- there are some YouTubers some say Paytm personal loan is the best, some say Google Pay personal loan is the best.

 some would tell you to take personal loan from Amazon, that’s best, some would call FlipKart the best, some would call Hero the best. Some would say this is the best- no one knows how many apps like this are there.

 You wouldn’t even know the name of those companies, even for them- some would say that it’s the best. Why is this happening? Which is actually the best? No one will tell you that. And to tell you the truth, even they don’t know for real if it’s the best or not. 

Let me tell you a truth. If Paytm has told someone to connect their links, and has promised the person money, then the person would say Paytm is the best. 

Someone will say, this company, which opened just yesterday they themselves don’t know if the company will survive or not that company would give their links. And anyone who uses that link, would tell you to apply from that link, that company’s the best. No one knows anything. 

They’re just taken up with calling this personal loan, or that, the best. What is best? In this article, we’ll look at things from the basics, as to where we should take personal loans from, and how we should take it. I mean, I made a article about it earlier too, about the five best instant loan apps. In that article too, I explained in-depth, and received lots of love from you on that article as well. This article…I was watching a few articles recently. 

They came into my view- articles from different people. You know- I’m honestly telling you in this article I’m not gonna give any links. You can check the description box- no links. I’ve made this article only to raise awareness about where you should take personal loans from. And some students out there, they go on a completely different level, to get the personal loan from anywhere possible.

 So, in this article, first understand what a personal loan actually is. Now get this. Take any loan as of this date. For e.g. first understand the banks- then we’ll come to these personal loan apps. If I go to any bank to get home loan presently, then it’s usually available at around 9-10% interest rate. 

Similarly, if I go to get a car loan, then that too is available for 9-10%. But if I go to take personal loans from the same banks, then bank would charge 15%, some may charge 12%. And some would say, they’d give you loan at even 25%. So, why are these personal loans so expensive? 

See, if someone takes a home loan, and defaults the loan, then bank would immediately come and tell you to vacate the home, the home will be auctioned, and they would recover their money. Similarly, one defaults a car loan, and the bank’s team comes and says, we will seize your car, sell it on open market, and will recover our money. 

But whenever any bank gives you personal loan, or if any app is giving you, then, looking at your CIBIL score, your PAN card, and your status, they give you a loan, of 1 lac, 2 lacs, 5 lacs, or 10 lacs- as required. 

If someone happens to default the loan, then no possession at all is mortgaged to the bank. So, what will the bank do at best? Take a legal action against the recipient. And through legal laws, they can keep on taking actions, but banks won’t recover any money even though the law takes action. That’s why banks say about these personal loans, credit cards, and such loans that these are all unsecured loans. 

And the loans like home loan, car loan- banks call them secured loans. Now obviously the secured loans will be cheaper in cost, and the unsecured loans will be costlier. But, there should be a limit, no?

 That suppose, if I’m taking personal loan from bank, then bank- suppose my CIBIL score is excellent then bank would give me one at 12%, or would give it at 15%. But bank won’t say things like they’d give a loan at 66%. Get this through your head. It’s loan you’re taking. Suppose I’m taking a loan of 1 lac, and someone tells me that, after 1 year, I have to give back 2 lacs. 

Then…apart from it, we can see the rate of interest with our own eyes that these instant loan apps are taking interest in full swing but no one is saying that, if, in case, you default a few of their EMIs, then it may happen- even you don’t know how much of interest will be applied on you. This is called- “being caught in a debt trap” that is- debt, debt over debt, and debt over that debt. 

During these times, you yourself must have seen cases, that, to which extremities people are pushed, and ultimately decide to do all sorts of things, as there would be so much pressure on them. So, we shouldn’t even initiate such acts only with that intention I’ve made this article.

 I’ll only make one request to you, before we go ahead, see, if it occurs to you even a little that, the article we’re gonna start and if you do agree with it- just write “I agree” in your comment. And if you feel the information I’m giving you is useless to you, then write “I don’t agree”. If you write “I agree”, then please like the article. If you write “I don’t agree”, then please dislike the article, so that I get the motivation, and I feel that, whatever I’m doing- I’m doing the right thing.

 I’m not going to give you any link in this article, and neither do I promote the instant loan apps. Only that- my only motive here is to be able to spread some financial literacy. If you want to make money, then in good ways or the banks or so doing a good job their links can be added too. But these shoddy instant loan apps whichever they are, xyz companies which opened only a while ago, and even they themselves don’t know if they’ll survive or not the links to them aren’t something that I want to give. 

Now understand one thing. Here’s a personal loan of my own, from ICICI Bank. I’ve presented a screenshot for you. I’ve blurred the loan account number, because of YouTube policies. Look here, the loan amount is of 3.17 lacs. 

Here’s a 3.17 lacs of loan, and its EMI is of Rs.28373. See, it’s written here- Rs 28360. I put it in the calculator, so the exact amount wasn’t matching. There’s only a difference of Rs.13. Look at the rate of interest calculated here- 13.4%. So, guys, even at 13.4%, loans are available. For availing- now, if someone has an even better CIBIL score than mine maybe that person would get one at even 12%. See, let’s understand the banks first. 

If I talk about ICICI Bank, then they clearly say, that their rates of interest on loans vary from 10.5% to 16%. Now, if someone’s CIBIL score isn’t good, then we would reject that person’s file, but we won’t say that we’ll give a loan at 20%, or at 25%. That won’t happen. Similarly, SBI says, their rates of interest on personal loans starts from 11.05%. 

In the same way, HDFC Bank says that their rate of interest ranges between 10.5% and 25%. In a like manner, Axis Bank says, their rate of interest on personal loan that begins from 10.49%. Okay, here’s one thing, I explain this in several articles too that, in this current time, you should hold onto Paytm. Paytm would say- with Aditya Birla, they have what they’d say- go on to Paytm and take a personal loan. 

It’s not like Paytm has money of their own to give personal loans. It has tied up with Aditya Birla, or with two or three more companies. I’ll click on Paytm and will be redirected to Aditya Birla. Like this one, I had made a article on god-knows-who. 

I guess, I made a article on FlipKart. Maybe it’s FlipKart- yes it was FlipKart has tied up with Axis Bank. FlipKart tells you to take personal loans from them. You’ll click on FlipKart, and it’ll redirect you to Axis Bank. It’s not as if FlipKart is doing social welfare for Axis Bank. If the loan has to be taken from Axis Bank, then go directly to Axis Bank for the loan. 

I go to FlipKart, make someone the middleman, and the middleman has to be paid as well. Axis Bank will give commission on your behalf, because FlipKart has brought the customer to Axis Bank. Since we’re smart enough, we’ll take one from Axis Bank itself. 

All those companies that I wrote of midway, they’re engaged with- they have no relation to personal loans only that, with some bank, with some NBFC- they have a tie-up. 

In between, they just say- go to the sites through their medium. So guys, look at them in a direct manner. First thing I’ll tell you is that always prefer taking personal loan from bank itself. Because bank has a certain mature way. 

Okay, let’s move ahead. We’ll discuss everything later on. Now these are some loan apps whose screenshot I put in here. Who gives the most amount of loan? It’s Bajaj Finserv. 

They give the highest loan, upto 40 lacs. Navi gives the highest loan of 20 lacs. 

Take a look at this screenshot. There’s mPokket. Now the highest loan it gives is of 45K only. Their target itself is to give loans to students mostly. Are you getting what I’m saying? Let’s take look at it further. If we see that see, which personal loan would be the best that which gives me the most time to repay. 

Suppose…if I look at it tenure-wise, then Bajaj Finserv gives me a time between 6 months to 8 years. Similarly, Navi gives me the maximum time period of 6 years, for personal loan. If I scroll down, then these give me loans for only 4 months. 

What loan would I take for a mere 4-month period? So, the thing is- which personal loan is the best? That which has the lowest rate of interest, the lowest processing fee, okay, which gives the biggest time period this is the best thing. 

Let’s move on. Look here. Let’s talk about rate of interest. Navi says, their rate of interest ranges between 9.9% and 45%. Now, here it has to be observed at which rate of interest the personal loan app gives us loans. Similarly, Bajaj Finserv here says, they give 11%-37%. 

This is the screenshot. See, some here say, 36%. Here it says that the rate will only start from 28.8%. That means, just think. There’s no end. If they could, they would demand 100%. Do you get it? Of all these things related to rate of interest, just take a screenshot. 

After this, let’s talk about processing fees. For processing fees- Navi says that they have 0 fees- which is a very good thing. Okay, they mention- 0%-15%. Is 15% a joke? Now, someone takes a loan of 1 lac 15%- 1,2,3,4,5… someone took a loan of 1 lac. 15% processing fees is required. That means, in my account, only 85K is deposited. 

Suppose, in future, they ask me for 35% rate of interest. So, there’s a loan of 1 lac over the head. In the account, the deposit that came was only of 85K. Now the EMIs that are to be paid must be paid at 35% interest rate. I mean, someone has to be insane. I mean, it’s a simple thing- that, instead of going to the banks, why would I go these instant loan apps? Got it? Come on, let’s go ahead. 

After that, it is the screenshot of minimum age as to which age they’re concentrating on. And here’s the list of total downloads on Play Store where it’s shown how many downloads that each app has, which indicates the creditworthiness of an app. 

And this is the list of ratings of each app on Play Store. So, we’ve seen all that. Let’s understand something let us find a conclusion. In present date, let’s put banks on one side, and put instant loan apps on the other side. 

Now, today why the advertisements of instant loans apps have increased that anyone’s now suggesting to take loan from instant loan apps, portraying that they’re the best and why the banks aren’t being suggested? That’s because, a commission of 3%-4% is usually given here. Yes, 3%-4%. 

If someone uses my link to get a 1 lac-rupee loan I’m not naming any apps, but there’re many such apps so, if someone gets a 1 lac-rupee loan using my link, then I’d get 3k-4k rupees as commission. 

Now, if this article gets a view of 5-6 lacs, or 8-9 lacs, or even a million, and if 2000 people use my link to get a loan of 50k, or maybe 4-5 lacs well, let’s assume an average of 1 lac so, I didn’t put any link only because I wanted to point out that you shouldn’t be rash about it, please. First, see what’s the best personal loan. 

Think it yourself, had I put link with this article then surely, I’d have benefited, but it’s true that India lacks financial literacy. Many just blindly trust anything that I or anyone else say on YouTube. So, please, don’t proceed blindly, I earnestly request you. So, what’s the best personal loan? 

The best personal loan is the one which has the interest rate of 11% to maximum – maximum 25%. This is the best personal loan. Anything over that if you’re watching this and you’re choosing anything over that, then you’re doing injustice to yourself. If you’re taking a personal loan on 30% interest, then you’re being wrongful to yourself. 

Even though I’m saying maximum 25%, I’d prefer it to be 20%. Tell me something – a lot of people say that instant loan apps give loan easily, while the banks often reject it. That’s true. If your CIBIL score is on the lower side, then instant loan apps will give you loan still, but the banks won’t do that. 

If you’re going for instant loan apps to improve your CIBIL score, then why are you taking loan of 1 lac, 1.5 lacs, or 5 lacs? Get one for lesser amount, like 10k, and pay all the EMIs quickly. You can also take a credit card against FD, spend using that, and improve your CIBIL score that way. 

There’re other methods as well. There’s no need to take a loan of large amount for that. And if your CIBIL score is alright, or almost alright, only a fraction of difference there – a lot of times loan gets rejected for that then you should wait. 

Suppose you need a loan of high amount, suppose I need a personal loan of 5 lacs and if the bank is not approving for it, then instant loan apps will also reject it. This is only valid for smaller amount of loans. 

Well, if the bank doesn’t want to give loan, then they wouldn’t grant even 10K rupees, and obviously, not 5 lacs either. But these will give you loan of small amounts, but not of the larger amounts. So, you need to understand that. 

There’re rates of interest, processing fees – what I was explaining is that rate of interest rate starting from 11-12% to 20%, or maximum 25%, is a good personal loan. If the same is offered by instant loan apps, then they’re good too. So, you shouldn’t pursue just one loan app and accept whatever interest rate they’re offering, which can go up to 35% or even 40%! Secondly, there’s also processing fee. 

Suppose, I’m taking a loan of 1 lac, on which I have to pay processing fee. The bank will charge approximately 1% or 2%, or maximum 3%. Bank doesn’t charge more than that. Even if they do, that can easily be negotiated. But it’s usually 1% or 2%. 

But here, as we saw, they charge 0-15%, even 20% processing fees – 7-8% is the usual rate of processing fee. So, when I’m not getting anything, then why should I blindly go after these instant loan apps? So, you need to understand that there’s no best personal loan shake it off of your mind that instant loan apps are the best. 

The best is that which gives you loan at the cheapest interest rate. That could be bank or instant loan apps. Now, I’ll discuss one last point. Let me get rid of this pen, and just put a random slide here. So, the last point that you need to understand put banks on one hand and instant loan apps on the other. So, why banks are better? Why I say banks are better? 

Suppose, someone can’t repay the loan due to any xyz reason. Suppose, A is a customer and he can’t pay back. What’d bank do? They’ll come A’s house, and they’ll follow up everyday. Well, bank will try to recover the money that they’ve given. 

But bank won’t go to A’s relatives, they won’t ring up the A’s relatives and complain about A. Understand this – bank will only approach the person who has defaulted. They won’t approach their relatives. 

But on the other hand, when you’re going to log in to an instant loan app, you’ll have to keep clicking on ‘Allow’ over and over again to give numerous permissions. They’ll have your contact list; they’ll have the access to your gallery. 

If someone defaults – suppose, you default – God forbid someone defaults a loan if someone defaults, then they’ll first call them. That person might really have some obligations and thus can’t repay, o they’ll understand that they won’t get anything back from this person. Now, they’ve already got the contact list. 

So, they’ll ring up some relative, and complain about the defaulter and demand money from them. Obviously the relative will be intimidated – they’ll not know that it’s not them who should pay and nothing will happen if they don’t so, they’ll panic and ring you up and tell you what’s happened. 

Then another relative will be intimidated by them, followed by another one. Then everyone will complain to you about the phone calls and you’ll be pressurised. Can you understand? Now, you don’t have money, and you’ll have to arrange it from somewhere and repay. 

So, see, how an immature way it is. This isn’t right – RBI doesn’t have any guidelines that allow them to defame you among your kin. So, this is also a difference. When someone takes a loan, they don’t intend to default it later. They have the intention of repaying. 

So, this was a difference. Well, I can never promote it. How can I say which one among these is the best? I got this comment in my last article too that “Sir, you’ve told us the whole story, but didn’t mention which is best loan app”. 

Well, I can’t bring my pen to tick any one of these and say “This one is the best”. What can I do? I just tell you what processing fee they charge, and what’re their rates of interest etc. If someone defaults even 1 EMI, then God knows how many penalties they impose, totally devastating the life of the guy. So, I can’t promote any of these. 

This was my purpose to make you aware that you shouldn’t blindly apply on any app. Lastly, I’d like to request that if you like this article then please write ‘I agree’ in comments and give a like. But if you don’t agree with me, and think that I should have mentioned 5 such apps, which potentially could have caused damage to a lot of people, then comment “I don’t agree” and state your reasons and give this article a dislike, so that I get to know the ratio of like and dislike, and I’ll keep that in mind for my next article. 

But if you feel I should keep giving my honest reviews, then please comment ‘I agree’ and like this article. 

For now, this is the end of the article. I put my heart into this article. I recently uploaded one, but then I changed my mind. Well, a lot of people – if you live in the city, then you might have the financial literacy. 

I’ve worked in banks and I’ve worked in rural areas too. I worked in a remote village of Maharashtra I am from North India and I couldn’t speak Marathi properly. But I worked there and I saw – I saw the condition of financial literacy in rural areas. So, I know that people, very easily become influenced from articles. 

So, I made this article with all my heart. Rest is up to you. Please give a response, and suggest what should I do and what kind of article should I make. So, for now, this is the end of the article. Thanks for Reading and thank you all.

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