Many business owners often face tough times due to inadequate funds where Fintech lenders come to their aid. Although their first impulse is banks but they generally face rejection due lack of security to offer. Additionally, banks also ask for a number of documents which they cannot provide. So, Fintech companies or lenders are the best options for the small business owners.
Financial Technology (Fintech) Companies or NBFCs (Non-Banking Financial Companies) are the other options for business owners to avail a business loan from. It is a parallel source of funding where the companies offer loans similar to banks but they do not hold a banking license. They offer lending services like banks but comparatively at customer-friendly terms and conditions.
Now let’s take a look at how Fintech companies in India are better than banks:
Simplified Loan Application Process
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Instead of visiting at a bank branch in person, the borrower can apply for a small business loan at any time and from anywhere. The Fintech lenders in India have a digital loan process and they offer online loan application. The borrower can apply for a loan online by visiting the lender’s website and fill the loan application. Additionally, he can upload the soft copies of the documents online.
Unlike banks, Fintech lenders have a swift disbursal process. They do not take a long time in approval and disbursement. The lender’s representative process the loan application right after the application is filled. And Fintech lenders usually disburse loans within in 3 days.
No Prepayment Charges
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To make up with the loss on interest due on the early payment of the unsecured business loan, banks charge some penalty on prepayment of the loan. The new-age Fintech companies do not charge any penalty on prepayment or you can say, they have 0 penalty charges. If the business owner can afford to repay the loan early (before the tenure), he can go for the same without incurring any additional charges.
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Business loan interest rate is not the only charge on the loan for business. But there are several other charges as well, such as insurance premium. But when a business loan is availed from a Fintech Lender, there are no such or hidden charges. You are also advised to know the APR – Annual Percentage Rate of the loan which involves all the charges.
Additionally, Fintech companies in India have a customer-centric approach where they are more focused on helping small businesses. So, if you too are thinking to avail a loan for the growth of your business, you can avail the services from a Fintech Lender.
Additionally, you can also register your business for free at the Connect App by ZipLoan to build your business network. Through the e-marketplace, you can create a business profile, list your products/services, find business, discover new business opportunities, and build connections.