In today’s digital era, all banks are offering personal loans through their instant personal loan app, whether it’s the biggest Nationalized Bank in the country, State Bank of India, or a private bank like HDFC. In 2023, there is no bank that does not offer personal loans through its mobile banking app, yet many people search for unauthorized apps on the Play Store.
There are so many instant personal loan app on the Google Play Store. It’s hard to know which ones are approved by the Government and which ones are not. Some apps claim to be approved by the Reserve Bank of India, but they are not.
Why Instant Personal Loan App is harmful?
If an instant personal loan app is not authorized and approved by the Government, then taking a loan from such app can land you in big trouble. Recently, a series called “Money Mafia” aired on Disney Hotstar, which showed that many people lost their lives by taking loans from instant personal loan app. These apps were offering small loans with just an Aadhar card and PAN card, and after that, their agents started harassing borrowers by calling them to pay EMIs.
These apps charged interest rates of 20% to 40% on the loan amount at their discretion, without following any rules and guidelines issued by Reserve Bank of India. In many cases, they even started demanding installments before the due date.
When you install these apps on your phone, they steal all your phone data, including your contact numbers and personal photos. When someone is unable to pay the installment on time, these loan providers morph their photos and share them with their relatives and friends, saying that they have taken a loan but have not paid it back yet.
These insults in front of acquaintances are unbearable for loan-takers, and some people end up committing suicide after facing so much humiliation. Recently, in February 2023, the Indian Government banned 232 betting and loan apps from the Google Play Store and App Store.
Which Instant Personal Loan App should be used?
If you need a personal loan urgently and want to get it quickly, you should only use the apps that have been approved by the RBI. These apps are only available from Public Sector banks, Private Sector banks, NBFC, and Payment banks.
We all have a savings account in some bank or the other. All you need to do is type your bank’s name followed by “mobile banking app” on Google. Like this
That’s it. You will get the results.
Read Suggestions: SBI Personal Loan Guide 2023
Then you just need to go to the Play Store or App Store and download your bank’s mobile app.
For your convenience, we have provided links to some famous banks’ mobile banking apps in the table below. You can directly click on those links to go to those apps.
| Sr no | Bank Name | Mobile App Download Link (Click on App Name) |
|---|---|---|
| 1 | State Bank of India | Yono App |
| 2 | Punjab National Bank | PNB One |
| 3 | Bank of Baroda | BOB World |
| 4 | Union Bank of India | Vyom App |
| 5 | HDFC | HDFC Mobile Banking |
How to use Instant Personal Loan App?
Now let’s talk about how to use these mobile banking apps like an instant personal loan app. First, you need to register on the app. There are two conditions for this:
- You should have an account in that bank.
- Your mobile number should be linked to your account as registered mobile number.
If both of these conditions are fulfilled, then you can register on the app by watching any tutorial video on YouTube and following the steps.
After registering, you need to log in to the app. Once you log in, you will see the option of “Pre-approved personal loan” on the home screen of the app. For example, we are taking the example of Punjab National Bank’s PNB One app.
You need to click on the “Pre-approved personal loan” option. As soon as you click on this option, the app will check your account’s credit entries for the last 10 or 12 transactions (only from income through salary) and based on that, it will check if you are eligible for a personal loan or not.
This is because every bank checks the borrower’s credit score and “repaying capacity” before giving out a loan. They only give loans to those who are capable of repaying them. And those who are not capable of repaying loan fall prey to fraud instant personal loan app.
If you are eligible, you will receive an offer telling you how much personal loan you can take, for how long, and at what monthly installment and interest rate.
Below are the current interest rates as of March 2023 for personal loans offered by some major banks on the basis of your Credit Score:-
| CIBIL Score Range | Rate of Interest (Approx.) |
|---|---|
| 750 and above | 10% – 14% |
| 700 – 749 | 11% – 16% |
| 650 – 699 | 12% – 18% |
| 600 – 649 | 14% – 20% |
| Below 600 | 16% – 24% |
You can use our EMI calculator to find out how much installment you need to pay every month for a particular loan amount and interest rate.
What Documents required for Instant Personal Loan?
An instant personal loan is a completely digital loan, which means you don’t need any documents to get it if you take it from your own bank. However, if you take a personal loan from any other trusted app, you’ll need your Aadhaar card and PAN card.
Conclusion
So, friends, I hope you learned a lot from this article and understood it well. I myself am a banker and I understand how bad it feels when we have to tell someone that they can’t get a loan. Especially when that person really needs it. In such situations, people often get trapped in fraudulent instant personal loan apps and ruin their lives. I request you to stay away from such apps and take a personal loan from your bank. And if you’re not eligible, seek help from someone reliable, but don’t fall for fraudulent apps.
