Money management platform Fi Money has launched its lending services to offer users instant credit, in partnership with Federal Bank. The instant personal loan service will provide borrowers with immediate access to credit through a paperless and pre-approved application process.
In a statement, Fi Money said the instant loans will be rolled out in a phased manner, with a certain number of users gaining initial access to avail credit from Rs 50,000 up to Rs 5 lakh, followed by a full-scale launch for all users in the coming weeks.
India’s appetite for credit has hit decade highs while deposit growth lagged far behind, prompting the RBI to raise concerns over this gap and the banking system’s balance sheets.
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While the central bank has urged lenders to increase due diligence on loan applications, it also means longer waiting periods and higher customer rejection rates. Consumers are increasingly falling into the trap of predatory lending practices as they turn to alternatives instead of formal credit. Fi Money aims to solve these issues with a secure and frictionless borrowing experience for its users.
The Bengaluru-based fintech has simplified its lending process to approve applications in a matter of minutes, The amount will be disbursed directly into the user’s Fi-Federal savings account, making funds instantly available.
As per the statement, Fi Money follows a no-questions-asked policy when it comes to the usage of funds and no pre-closure fees, so users are not charged if they choose to pay off their loan early.
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“Our aim is to provide quick and easy access to credit for our users whenever and wherever needed. Our research showed that the most significant pain point borrowers face when applying for credit is the lengthy paperwork and complicated application procedure. We have ensured that users will have a simplified and transparent borrowing experience on Fi,” said Sujith Narayanan, co-founder and CEO, Fi Money.