Last-minute fund requirements and the need to have money in hand to cover extra expenses without taking a loan from friends and family is always a welcome move. Thankfully, if your credit score is good, you can always access personal loans from banks in India or apply for credit cards. Both can help you go through an emergency or back you when you have a big-ticket purchase in the offing. The downside is that you need to be very prompt in making the EMI payments.
Till now, you could apply for credit cards and personal loans from conventional banking and financial institutions. But ever since the digital revolution, end users are being wooed by multiple fintech platforms working round the clock by offering something new and impressive.
MobiKwik is one of the leading fintech players today and also one of the first to expand its digital payments by extending credit facilities to its user base. Becoming perhaps the first digital platform to launch the 'Buy Now, Pay Later' ZIP service. Typically, if you have the MobiKwik App downloaded on your smartphone, all you need to do is to activate the ZIP service. Once the activation process is complete (it does not take days to happen), you can start requesting credit as and when required to meet your fund shortage. Depending on the credit score, an amount of Rs.1000 to Rs.30,000 is credited which is a decent amount to help you tide over immediate purchases, payments, or other monetary needs. The amount is quite manageable when repaying and is not too burdensome for most average middle-class households. Compared to this, when you consider taking a personal loan, the loan (repay) amount is usually not a nominal amount and becomes a sizable part of your income.
Reasons that make MobiKwik ZIP better than going in for a personal loan
Loan amount versus Rs. 30,000 from ZIP
The personal loan amount usually is generally higher in value which is borrowed to meet medical expenses or fund your child's education, weddings, etc. In most cases, the loan amount is used for a big-value purchase or investment. Not so with MobiKwik ZIP – the amount you can take on credit is up to Rs 30,000, which is good enough to meet your immediate cash crunches or urgent or last-minute purchases.
A credit of any type is binding – whether you choose a personal loan, conventional, or digital credit card. However, going in for MobiKwik ZIP is possibly the best solution if you have any urgent money or finance needs because the credit amount is not too high, and one can easily manage to pay back within the given timeframe.
Paperless approval
It is possibly the most popular reason to choose ZIP over any personal loan. Applying for a personal loan from a conventional bank can be tedious, time-consuming, and includes a lot of paperwork. After days and weeks of follow-up with the bank and providing multiple rounds of verifications, the loan finally gets approved. Comparatively, ZIP is characterized by a very fast turnaround time. The approval does not require too many documents – all that you need to provide are your personal details, and the requested credit amount is processed within seconds.
With almost negligible approval time, ZIP is like a virtual credit card in your hand, ready to be used at the click of your finger.
Swift money disbursal
That is the fun of being associated with an agile platform like MobiKwik. It is super-fast. Once your requested amount is approved, the loan amount is credited to your digital wallet within seconds. Thus, not only is the approval time or the processing time negligible, but the disbursal process is also equally swift in the case of ZIP.
Personal loans from banks, in comparison, take time to get processed and also take time to get transferred to your bank account.
Seamless repayment process
While there is not much difference between the repayment process of personal loans and credit cards, the repayment process of ZIP has been carefully created with the end-user in mind. The platform's objective is to facilitate easy and smooth repayment by users so that the chances of missing out or attracting interest on late payments can be avoided.
The invoice for ZIP gets generated on the 1st and the 16th of the month. Each invoice covers 15 days so that if you have used any value from your credit limit of Rs. 30,000 within the 16th to the end of the month, your invoice will reflect the amount on 1st, and if you have used the credit from 1st till 15th of the month, the invoice will reflect the amount on the 16th. MobiKwik gives you five days to make the repayment and clear your invoice.
Helps to improve your credit score.
Repaying your MobiKwik ZIP bills in time helps you strengthen your credit score. So does repaying the personal loan, but the difference is that the term period of a personal loan is usually between three to five years, while the term period of the ZIP credit line facility is 15 days or a month. It means that you can improve your credit score fast with the ZIP facility. Once your credit score is good enough, it helps you apply for a personal loan, home loan, car loan etc., in turn.
Conclusion
While there are various pros of a personal loan, going in for MobiKwik ZIP is ideal for keeping your wallet full and meeting urgent money needs without any need to go through a paper-driven process of applying for a personal loan. So download the MobiKwik app and activate ZIP now.
