Personal Loan Options Expand with New Mobile Apps
There are a steadily increasing number of lenders, peer-to-peer loan companies and alternative financing strategies that you can use to find a personal loan, so many consumers appreciate being able to find, manage and request loans using mobile apps. Androidapps.com and other sources now provide convenient mobile apps that take the drudgery out of requesting loans, but mobile apps can now facilitate offering a loan through P2P and marketplace lending. In-app loa forms can accelerate the process while helping consumers find a personal loan that meets their needs.
One of the latest mobile apps that’s drawing lots of attention is the Onloan app for Android from the Google Play Store. This intuitive app allows users to create loans for alternative lending and invite key peer groups to get started. These groups might include co-workers, friends, family members and specific demographic groups. Users can create a loan, calculate legally binding paperwork and set up the loan without using banks as intermediaries. People who use iOS phones can also manage, track, find and request loans with the iLoan app, which is available from iTunes.apple.com.
The Apple, or iOS, app helps private lenders to keep track of any personal loan they’ve made with smart calculation and amortization features such as these:
- You can enter new loans and keep an accurate record for the entire life of the loan–whether you’re borrowing or lending money.
- The app tracks principal, interest, payments and origination date and balance.
- You can enter new payments when you make or receive them.
- It’s easy to generate loan statements for the borrowers.
- You can calculate the changes in interest if the borrower makes additional payments or misses a payment.
If you need to borrow money, mobile apps can facilitate finding the right loan through one of the emerging peer-to-peer lending networks. Mobilepaymentstoday.com offers a free download of a mobile app that caters to millennials, and the app manages P2P loans that range from $100 up to $10,000. This sophisticated app even includes a built-in algorithm that extends credit limits up to $1,000 each quarter for borrowers who repay their loans as agreed.
Intuitive Mobile Apps Now Facilitate Making Loans Without Using Financial Institutions
Consumers now prefer to request loans online according to a PDF prepared by PWC.com. This trend is especially strong among millennials, which are young adults under the age of 34, but older generations are also beginning to prefer the convenience and privacy of shopping for financial products online. Mobile apps are also gaining popularity with all demographic groups, and these loan apps can simplify the drawn-out process of requesting to multiple lenders to obtain a personal loan.
Onloan, the Android app, takes a personal approach that is similar to what social media platforms offer. Lenders post photos of themselves in their profiles, and users can share the information with their social media contacts, friends, family members and business associates. This user-friendly and engaging approach attracts borrowers who might not like the hassle, red tape and impersonal nature of requesting personal loans at traditional banks. In fact, you can offer or find a loan just by signing into your Facebook account.
Small Personal Loans Are Facilitated by Various Types of Mobile Apps and Digital Technology
New markets are rapidly evolving for small personal loans. Borrowers often become frustrated with delays, administrative red tape, and uncaring lenders who won’t consider special or unique circumstances when evaluating loa forms. There’s been a paradigm shift in how money moves according to a report posted at Huffingtonpost.com. Consumers and businesses are using new, digitally enhanced platforms and mobile apps where investors can offer small personal loans through marketplace lending strategies.
Androidapps.com also offers budgeting apps that help lenders and borrowers track their loans, manipulate them, enter expenses related to administrative costs and execute personal financial tasks such as managing multiple loans, credit card accounts, other assets and liabilities.
You can use one of these financial apps from the new generation of technology to budget your money, request a loan and keep track of your financial details such as income and expenses. These apps can facilitate and automate preparing your income taxes like an expert accountant or software program. The emerging marketplace lending industry offers faster credit decisions, easier approvals and more flexible borrowing terms.
Treasury.gov reports that marketplace lending offers both opportunities and risks. Many lenders use a more user-friendly business model when underwriting offers of credit. This practice is innovative but generates risks. Small personal loans made through P2P lending networks–and mobile apps–don’t qualify for any kind or repayment guarantees from the government, so lenders can lose their entire investments.
These new lending practices have evolved during a period of low interest, strong credit conditions, low inflation and declining unemployment rates. If any of these conditions change–and they’re expected to in the near future–these new credit models could generate high default rates and massive investment losses.
Risks of Offering Small Personal Loans Through Marketplace Lending
Apps make it easy for almost anyone to enter the field of offering small personal loans. However, simplified apps for handling the technical details can’t make the kind of informed decisions that experience can facilitate. Some of the key concerns for inexperienced P2P lenders include:
- Defaults are hard to predict because they don’t remain constant over time.
- Unsecured loans are risky because borrowers can’t be forced to repay them.
- Marketplace lenders must report both positive and negative information about loan repayments to the major credit reporting agencies.
- People with the best credit ratings tend to go to banks for a personal loan.
- Private investors have no government guarantees for their loans.
- Marketplace lending hasn’t been tested long enough to understand all the risks.
Despite the risks, the alternative lending industry is making rapid inroads in the personal loan business. In the United States and United Kingdom, a recent upsurge in P2P loans is leading a recovery in the personal loan industry. Technology apps make it increasingly easy for any investor with some extra cash to finance a small personal loan. You can find out more about mobile apps for loans and financial management at the Personal Money Store.