Why prefer to pay later than a personal loan?


Last minute fund needs and the need to have cash on hand to cover additional expenses without taking out a loan from friends and family are always welcome. Fortunately, if your credit score is good, you can still access personal loans from banks in India or apply for credit cards. Both can help you get through an emergency or support you when you have a major purchase in the pipeline. The downside is that you have to be really quick to make EMI payments.

Until now, you could apply for credit cards and personal loans from conventional banking and financial institutions. But since the digital revolution, end users have been wooed by multiple fintech platforms working around the clock delivering something new and awesome.

MobiKwik is today one of the main players in fintech and one of the first to expand its digital payments by extending credit facilities to its user base. Perhaps becoming the first digital platform to launch the “Buy Now, Pay Later” ZIP service. Usually, if you have downloaded the MobiKwik app on your smartphone, all you need to do is activate the ZIP service. Once the activation process is complete (it doesn’t take several days), you can start applying for credit as needed to fill your shortage of funds. Depending on the credit score, an amount of Rs.1000 to Rs.30,000 is credited which is a decent amount to help you meet purchases, payments or other immediate monetary needs. The amount is quite manageable when repaying and is not too heavy for most middle class households. Compared to this, when you are considering taking out a personal loan, the loan amount (repayment) is usually not a nominal amount and becomes a significant part of your income.

Reasons why MobiKwik ZIP is better than personal loan

  1. Loan amount against Rs. 30,000 from ZIP

The personal loan amount is usually of a higher value and is borrowed to cover medical expenses or finance your child’s education, weddings, etc. In most cases, the loan amount is used for a high value purchase or investment. This is not the case with MobiKwik ZIP – the amount you can take on credit can go up to Rs 30,000, which is enough to meet your immediate cash flow problems or your urgent or last minute purchases.

Credit of any type is binding, whether you choose a personal loan, a conventional credit card, or a digital one. However, opting for MobiKwik ZIP is probably the best solution if you have urgent money or financing needs, as the loan amount is not too high and you can easily manage to repay on time.

  1. Paperless approval

This is probably the most popular reason for choosing ZIP over any personal loan. Applying for a personal loan from a traditional bank can be tedious, time consuming and involves a lot of paperwork. After days and weeks of follow-up with the bank and multiple rounds of verifications, the loan is finally approved. Comparatively, ZIP is characterized by a very fast turnaround time. The approval doesn’t require too many documents – all you need to provide is your personal details, and the requested credit amount is processed in seconds.

With almost negligible approval time, ZIP is like a virtual credit card in your hand, ready to use with the click of a button.

  1. Quick payment of money

It is the pleasure to be associated with an agile platform like MobiKwik. It’s super fast. Once the requested amount is approved, the loan amount is credited to your digital wallet within seconds. So not only is the approval time or processing time negligible, but the disbursement process is also just as fast in the case of ZIP.

Personal loans from banks, in comparison, take a long time to process and also take a long time to transfer to your bank account.

  1. Transparent refund process

While there isn’t much of a difference between the personal loan and credit card repayment process, ZIP’s repayment process was carefully created with the end user in mind. The aim of the platform is to facilitate easy and smooth reimbursement by users in order to avoid the risk of missing or attracting interest on late payments.

The invoice for ZIP is generated on 1st and the 16e of the month. Each bill covers 15 days, so if you’ve used up your credit limit worth Rs. 30,000 within 16e at the end of the month, your bill will reflect the amount on 1st, and if you used the credit from 1st until 15e of the month, the invoice will reflect the amount on the 16the. MobiKwik gives you five days to issue the refund and clear your invoice.

  1. Help improve your credit score.

Paying off your MobiKwik ZIP bills on time helps boost your credit score. The same goes for the repayment of the personal loan, but the difference is that the duration of a personal loan is usually between three and five years, while the duration of the ZIP line of credit is 15 days or more. a month. This means that you can improve your credit score quickly with the ZIP feature. Once your credit score is good enough, it helps you take turns applying for a personal loan, home loan, car loan, etc.


While there are various benefits of a personal loan, opting for MobiKwik ZIP is great for keeping your wallet full and meeting urgent cash needs without having to go through a paper personal loan application process. So download the MobiKwik application and activate ZIP now.

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