True Balance Loan App: All About Personal and Microloans
In the fast-changing environment of digital financial services, mobile apps offering personal loans are already growing in popularity for users, especially those who may not be able to enjoy services from conventional banks. True Balance, an application that was initially designed for mobile balance management and recharges, has evolved into a financial services platform that offers personal loans and microloans in various countries, especially in India. In this article, we will give you a comprehensive review of the True Balance Loan App, including how it works, its features, the application process, and the pros and cons of using it.
- What is the True Balance Loan App?
True Balance began as an app that helped users track and manage their mobile phone balance, monitor usage, and pay bills. The app expanded its scope over time to include a variety of financial services, including microloans, personal loans, and credit score-building services. True Balance offers unsecured loans based on alternative data such as phone usage and recharges, thus providing financial inclusion to those who may not have access to traditional banking or a good credit history.
The app is very useful in countries like India, where the population is large and does not have access to formal financial services due to low income, lack of credit history, or documentation.
- How Does the True Balance Loan App Work?
True Balance employs a unique system to determine who is eligible for a loan, which is quite different from other lenders. This is how the loan process works:
- Registration and Profile Setup: To use the app, users must first download it from the Google Play Store or Apple App Store, depending on their device. Once installed, users need to register with their basic details such as name, phone number, and email ID.
- Loan Eligibility: The app assesses the creditworthiness of a user using his mobile phone data, including call records, recharge history, and the frequency of payments. This is a different approach to traditional credit scoring, which relies majorly on the applicant’s financial and credit history. This system is beneficial to people who have no formal credit history or whose history in banking is very limited.
- Loan Application: Once the profile is created, users can apply for a loan by choosing the loan amount they want to borrow. True Balance offers small, short-term loans, ranging from ₹1,000 to ₹20,000, depending on the user’s eligibility. Users can choose the loan tenure as per their preference, ranging from a few weeks to a couple of months.
Instant approval and disbursal True Balance offers instant loan approval with minimal paperwork, usually disbursing the amount directly into the user’s bank account or digital wallet in just a few hours after approval.
The application offers repayment of loans; therefore, several forms of repaying loans are made available to users. Repayment terms vary depending on the length of time, but normally are short term, with users repaying the loans monthly or every two weeks. Users might be allowed to borrow loans again if they successfully pay off their loans within the given period.
Credit Building: Using the True Balance Loan App and repaying loans regularly also gives users the chance to build or improve a credit score. True Balance shares their payment data with credit bureaus, which helps in creating a good credit history over time.
- Features of the True Balance Loan App
True Balance has several features that make it attractive for users looking for quick loans. Some of the features are as follows:
3.1 Easy Loan Application
The loan application process on True Balance is very simple and fast. With a few taps, the user can apply for a loan, and the approval process is automated. No extensive documentation or visits to a physical bank are required.
3.2 Instant Loan Disbursement
When the loan is approved, it gets disbursed almost immediately. This makes it an excellent choice for users who are in dire need of money. These may include emergency hospitalizations, household expenses, or personal needs.
3.3 Loan in Small Amounts
True Balance provides loans in small amounts. The smallest amount loaned is ₹1,000. This feature helps those who want a small loan and avoid taking in more than needed.
3.4 Repayment flexibility
Users can choose a repaying period that suits their budget. The app offers options from 7 days to several months depending on loan amount and user profile. All this makes it easier to manage finances for users
3.5 No need for credit score
Unlike the other loan providers, the app does not require a credit score to approve loans but instead uses an alternative method by assessing creditworthiness through the use of the user’s history on phone usage and recharges.
3.6 Low-Interest Rates
True Balance is known to be giving loans at competitive interest rates, which are often even cheaper than most traditional payday loan providers. These rates are lower than what many informal lenders charge, so there’s a reason for being on the app.
3.7 Tracking of Loans
The loan application status and repayment schedules of users can be tracked from the app. This tracks and organizes users with respect to timely repayment of loans.
3.8 Credit Building
As discussed, True Balance enables users to improve their credit scores over time through the reporting of timely loan repayments to credit bureaus. This is a great benefit for those who wish to establish a credit history or improve the existing credit score.
3.9 Security
True Balance takes its users’ personal and financial information through encryption and other security measures. The data remains secure from unauthorized access.
- Loan Types Offered by True Balance
True Balance offers loans to the customers according to requirements. The following are the most popular types of loans:
Personal Loans – Small unsecured loans can be taken up for purposes of paying medical bills, educational expenditure, or some other urgent fund requirement. Such loans are relatively short term in nature and may range between ₹1,000 and ₹20,000 for borrowed amount.
- Top-Up Loans: Once a user repays the initial loan successfully, they may be eligible for a top-up loan. This means the loan amount can be increased based on the user’s repayment behavior and eligibility.
- Emergency Loans: In case of urgent needs, users can apply for emergency loans that are processed faster than regular loans. These loans come with quicker disbursement timelines.
5. Eligibility Criteria for True Balance Loan
The eligibility criteria for True Balance loans are not very stringent compared to other loan providers. General requirements include the following:
- Age: The age bracket of a user applying for a loan should be between 21 and 55 years.
- Indian Residents: This app is primarily for Indian users, but it might also be available in other countries.
- Valid KYC: Users must provide valid KYC (Know Your Customer) documents, such as Aadhaar card or PAN card, to verify their identity.
- Phone Number: The user must have a valid mobile number registered with the app, as the platform uses mobile data for credit assessment.
6. Pros of Using the True Balance Loan App
- Fast and Easy Process: True Balance simplifies the loan application process with minimal paperwork and instant approval.
- Financial Inclusion: It offers financial services to individuals who might otherwise be excluded from traditional banking due to a lack of formal credit history.
- Flexible Repayment Options: The app provides flexible repayment plans, which makes it easier for users to manage their loans.
- No Credit Score Required: Users without or with very little credit can still apply and qualify for the loans.
- Access to Small Loans: True Balance is suitable for someone who needs a small short loan and would not want to borrow huge sums.
– Credit Score Building:
Loans repaid in time ensure that users start building or increasing their credit score, creating room for more significant, better opportunities in the long run.
- **Disadvantages of Using the True Balance Loan App
- Short-Term Loans: The loans are mainly short-term, which is not preferred for users who require more extended periods of financial aid.
- Repayment Pressure: The fast repayment schedule might put pressure on some users, especially those with fluctuating incomes.
- Limited Loan Amounts: Although the app offers small loans, individuals needing larger amounts may find this platform insufficient for their needs.
8. Conclusion
The True Balance Loan App is an innovative financial tool with alternatives to traditional lending ways. It is designed for an immense range of users, especially people without access to formal banks or those who cannot operate based on traditional credit scores. It is accessible in that it has an easy-to-use interface, quickly gets approved loans, and has very flexible repayment options for millions of people.
However, as is the case with all financial products, True Balance loans also have advantages and disadvantages. Users must know and understand the terms, interest rates, and repayment schedules of loans before availing themselves. If used responsibly, True Balance can be a very useful tool in managing short-term needs for money and improving the credit history in the long run.
