The demand for quick loans has skyrocketed recently owing to the increase in living standards. Consequently, mobile money lending has become preferable to most people. Apart from that, these loaning apps guarantee countless benefits to borrowers.

Why Mobile Money Lending Has Become More Popular

It is not a surprise that the majority of the 4 billion smartphone users prefer mobile money loans. Here are the main reasons that contribute to this:

1. Cheap Loans

The beauty of this loaning option is they charge lower interest to the borrower. More often than not, the repayment period is strictly monthly. However, the loanee must know that a penalty fee applies if you fail to repay the entire amount in full.

2. Quick Loan Processing

All mobile money lending apps process loan requests within minutes. However, the provider will only approve your loan request if you meet all the requirements.

3. No Security Needed

All borrowers deem it unfathomably scary to risk a highly-priced asset in exchange for a loan. However, circumstances compel loan recipients to offer such properties to get a loan for an emergency. Thankfully, mobile money apps strictly give unsecured loans to any qualified debtor.

4. Fair Interest Rates

Technically, interest rates vary thinly from one country to another. For example, mobile money apps charge at most 7.35 percent on short loans. On the contrary, banks may offer slightly higher rates for short-term loans.

Funny enough, some money lending apps do not charge any interest rates. However, a penalty fee applies if you fail to repay the credit in time.

5. Mobile Users Can Borrow Airtime Credit

Do you need to make a call urgently? Worry no more as mobile communication companies allow their users to borrow airtime. However, the company sets a specific airtime amount.

After that, the airtime limit gradually increases as the user’s creditworthiness improves. More often than not, the company processes airtime requests in seconds.

6. Transparency

The good thing about mobile money lending is that there are no go-between involved. A borrower directly interacts with the lender. As a result, the loan processing fee is much more reasonable.

7. It Does Not Specify a Repayment Option

Thankfully, mobile money lending platforms do not dictate any repayment plans to borrowers. Therefore, a debtor can gradually pay back whichever amount they get before the loan repayment date.

Conclusion

Lastly, mobile money lending has made it much easier to secure quick loans. You do not have to do any paperwork to get credit. Thankfully, the respective central bank regulates these banks. Hence there is no risk of exploitation.

Related Tags: Mobile Money Loans, Mobile Financial Services.