In India, the world of digital loan apps is expanding fast, and with over a thousand options available, Navi has become one of the popular names in the market. Founded by Sachin Bansal, a well-known name in the Indian startup ecosystem, Navi aims to make the process of taking loans smooth and accessible for people across the country. But is it as good as it claims? This blog post dives into Navi’s pros, cons, and who should or shouldn’t consider taking a loan from it.
Is Navi Legitimate?
If you’re worried about the app’s legitimacy, you can breathe easy. Navi is 100% legitimate and trustworthy. Unlike some shady loan apps, Navi does not share your data with third-party vendors, so you won’t get annoying sales calls. However, they may use your data to offer other Navi products, like insurance or home loans, but it stays within Navi’s ecosystem.
Features and Offerings
Navi offers personal loans up to Rs. 20 lakh with an interest rate that starts from 10%. Here’s a quick look at its main features:
- Flexible Repayment: You can repay your loan over a period of up to 5 years.
- Zero Foreclosure Charges: There are no fees if you want to repay your loan early.
- Minimal Processing Fees: Navi claims that it has no processing fees for some users, but this is not true for everyone. Processing fees vary based on your credit profile.
Navi Loan Pros
- Quick Disbursement: Navi is known for its fast loan processing time. Many users receive their loan amount almost instantly after verification.
- Transparency in Repayment: Navi offers a structured EMI system, so you know exactly how much you need to pay every month.
- Flexible Tenure Options: You can choose a repayment period that suits your financial situation, from a few months up to five years.
Navi Loan Cons
- Variable Interest Rates: While Navi advertises an interest rate starting at 10%, most users report that they’re offered rates around 18-20%, especially those with average credit scores.
- Processing Fees Apply to Many: Despite Navi’s claims of zero processing fees, it turns out that this doesn’t apply to everyone. High credit profiles might get a lower or zero processing fee, but others may still be charged.
- Hidden Charges?: Navi does not publicly disclose certain fees and charges. Our team tried to find the complete breakdown of charges, but the information was not readily available.
Eligibility Criteria
Navi has specific eligibility requirements. Here’s a quick summary:
- Minimum Age: While Navi’s website says 18, in reality, applicants under 21 have a lower chance of approval.
- Income Requirement: You need a minimum annual salary of Rs. 3 lakh.
- Credit Score: A CIBIL score of 750+ is ideal, and without it, your application is likely to be rejected.
Given these criteria, it’s clear that Navi is looking for high-credit-quality customers. However, people who meet these high standards might already be eligible for better loan offers from banks with lower interest rates and fees.
Who Should Take a Loan from Navi?
- New to Credit or Young Applicants: If you’re young or don’t have an established credit history, Navi might be one of the few options you can try.
- Non-Salaried Individuals: If you’re self-employed and have trouble securing loans from banks, Navi could be a convenient choice.
Who Should Avoid Navi?
- High Credit Score & Salary: If you have a good credit score (750+) and earn more than Rs. 3 lakh per annum, you’re better off approaching a traditional bank, as they often offer better terms.
- Users Looking for Lower Fees: If you’re someone who wants transparency on processing fees and interest rates, Navi might disappoint with its dynamic fee structure.
Loan Application Process with Navi
Let’s walk through the steps of applying for a loan on the Navi app:
- Basic and Work Details: Start by entering your basic information, such as your name, date of birth, PAN number, employment type, and monthly income.
- Loan Offer: Based on your details, Navi will show you a loan offer. You can accept this offer to move to the next steps.
- Bank Details & Verification: Enter your bank account information where you’d like the loan to be deposited. Navi may perform a small “penny drop” test to verify your account.
- Auto Debit Setup: You’ll need to set up auto-pay for monthly EMI deductions. This is mandatory.
- KYC Verification: Finally, complete your KYC. You’ll be asked to submit a selfie and a video for verification, along with an Aadhaar OTP verification.
Once everything is approved, your loan amount will be credited to your bank account.
Our Final Review
While Navi is a legitimate and reliable app, it may not be the best choice for everyone. It’s a good option for those with limited credit history or those who need fast cash without much hassle. However, high-income earners with good credit scores can likely find better loan options with lower interest rates and fees from traditional banks.
Navi is also working on making the loan process as seamless as possible, and if you need a personal loan with minimal requirements, it’s worth considering. If you decide to take a loan from Navi, ensure you understand the exact interest rate, processing fee, and repayment terms beforehand.