In recent years, digital wallets have evolved into all-in-one financial platforms, offering a variety of services beyond just payments and recharges. One such feature that MobiKwik offers is its Loan Feature, which allows eligible users to avail short-term loans directly through the app. Whether you need extra funds for personal expenses, emergencies, or a large purchase, MobiKwik’s loan feature can provide quick access to cash, without the need for paperwork or lengthy approval processes.
If you’re curious about how to activate and use the MobiKwik loan feature, you’re in the right place. In this guide, we’ll walk you through everything you need to know.
What is MobiKwik’s Loan Feature?
MobiKwik offers instant personal loans to eligible users through its integrated MobiKwik Loan feature. The loan is provided in partnership with various financial institutions and NBFCs (Non-Banking Financial Companies). Users can apply for loans ranging from ₹1,000 to ₹1 lakh, depending on eligibility, and repay them in easy EMIs (Equated Monthly Installments).
Key benefits of using the MobiKwik loan feature include:
- Instant Loan Disbursal: Loans are processed quickly, and funds are disbursed almost immediately.
- Flexible Repayment: Choose from flexible repayment tenures ranging from 3 months to 12 months.
- Paperless Process: No documentation is required, and the entire process can be completed through the app.
- Minimal Interest Rates: MobiKwik offers competitive interest rates, making it an affordable borrowing option.
- Easy Access: Loans can be availed directly through the MobiKwik app, making it highly convenient.
How to Activate and Use MobiKwik’s Loan Feature
Step 1: Ensure You Meet the Eligibility Criteria
Before applying for a loan through MobiKwik, it’s important to ensure that you meet the basic eligibility criteria. MobiKwik typically considers the following factors:
- Age: You must be at least 21 years old and less than 60 years of age.
- Credit Score: A good credit score (usually above 650) is required for higher loan amounts and favorable terms.
- Active MobiKwik Account: You must have an active MobiKwik account with a verified KYC (Know Your Customer).
- Regular Income: MobiKwik may require proof of income or employment for loan approval.
- Usage History: Your transaction history and relationship with MobiKwik (including wallet activity and loan repayment history) will also be considered.
If you meet these requirements, you’re ready to activate the loan feature.
Step 2: Download or Update the MobiKwik App
If you haven’t already installed the MobiKwik app, you can download it from the Google Play Store (for Android) or Apple App Store (for iOS). If you already have the app installed, ensure it’s updated to the latest version to access the loan feature.
Step 3: Complete Your KYC
To be eligible for the loan feature, your MobiKwik account must be fully verified. This includes completing your KYC (Know Your Customer), which is mandatory for most financial transactions in India. If you haven’t completed your KYC yet, follow these steps:
- Open the MobiKwik app.
- Go to the Menu and tap on Profile.
- Under KYC, tap on Complete KYC.
- Follow the on-screen instructions to upload your Aadhaar card, PAN card, and selfie for verification.
- Wait for the verification process to complete (usually within a few hours).
Once your KYC is successfully verified, you can proceed to apply for a loan.
Step 4: Check Eligibility for Loan
- Open the MobiKwik app.
- Tap on the ‘Loans’ or ‘MobiKwik Loan’ option (usually available under the ‘Offers’ or ‘Wallet’ section).
- You will be asked to check your loan eligibility based on your credit profile and MobiKwik usage.
- Enter basic details like your monthly income, employment status, and city of residence.
- The app will show you the loan amount you’re eligible for, along with the interest rates, repayment terms, and other conditions.
Step 5: Apply for the Loan
Once you’ve checked your eligibility, you can apply for the loan:
- Choose the Loan Amount: Select the loan amount you wish to borrow from the available options (usually from ₹1,000 to ₹1 lakh).
- Select Repayment Period: Choose the repayment tenure (usually between 3 to 12 months).
- Review Loan Details: Carefully review the loan details, including the interest rate, processing fee, and EMIs.
- Confirm and Apply: If everything looks good, tap on ‘Apply for Loan’.
Step 6: Instant Loan Disbursal
After you apply for the loan, MobiKwik will process your application in real-time. If you meet all the criteria and your loan application is approved, the funds will be disbursed instantly. You will receive the loan amount directly into your MobiKwik wallet or linked bank account, depending on the loan terms.
Step 7: Repay the Loan in Easy EMIs
Once you receive the loan, you will need to repay it in monthly installments (EMIs). Here’s how to manage your repayments:
- View Your EMIs: You can view your upcoming EMIs under the ‘Loans’ section in the MobiKwik app.
- Set Up Auto-Debit (Optional): For convenience, you can set up an auto-debit feature, where your EMIs will be deducted automatically from your MobiKwik wallet or linked bank account.
- Manual Payment: If you prefer to pay manually, you will receive reminders for upcoming EMI payments, and you can make the payment directly through the app.
If you fail to repay your EMIs on time, MobiKwik may charge a late fee and may report your payment history to credit bureaus, which can impact your credit score.
Tips for Using MobiKwik’s Loan Feature Responsibly
- Borrow Only What You Need: Borrow only the amount you need and can repay comfortably. Avoid over-borrowing as it could lead to financial strain.
- Timely Repayment: Always ensure you repay the loan on time to avoid penalties and damage to your credit score.
- Check for Better Offers: Before applying, check if MobiKwik is running any special loan offers, such as low-interest rates, processing fee waivers, or longer repayment periods.
- Use Loan for Necessities: Use the loan for essential expenses, emergencies, or planned purchases, rather than for impulse buying.
Common FAQs About MobiKwik’s Loan Feature
1. How quickly is the loan disbursed?
MobiKwik offers instant loan disbursal, meaning once approved, the loan amount is transferred to your MobiKwik wallet or linked bank account within minutes.
2. What is the loan tenure?
The loan tenure typically ranges from 3 to 12 months, depending on the amount borrowed and your eligibility.
3. Are there any hidden fees?
MobiKwik is transparent about its fees. You will know the interest rate, processing fee, and EMI schedule upfront before you accept the loan.
4. Can I apply for a loan if I have an existing loan with MobiKwik?
If you are currently repaying another loan, you may still be eligible for additional loans, provided your repayment history is good and your overall credit profile supports the new loan.
5. Can I repay the loan early?
Yes, MobiKwik allows prepayment of loans without penalties. You can clear your loan early if you wish, reducing the interest burden.
Conclusion
MobiKwik’s loan feature is a convenient and fast way to access short-term credit, all without leaving the app. By following the simple steps outlined above, you can activate the loan feature, apply for a loan, and manage your repayments with ease. Whether you’re dealing with an emergency, planning a large purchase, or just need extra funds, the MobiKwik loan feature provides an accessible and flexible borrowing option. Just remember to borrow responsibly and ensure timely repayments to avoid any financial strain.