Whenever the competition increased in any field of business it creates ease for the customers. Due to the increase in competition the power of negotiation is converted to customers. In the start when there is no competition in the market against any product or business. You will find that product or services which that business is providing in the market on expensive rates. But as we see the competition increased and more options available in market companies change their marketing strategy. They suddenly start focusing on customer service and pricing policy. Now customer have more power in hand they have more options in term of products and companies and they will have the power of comparison as well in shape of price and quality.
The same thing happened in the financing industry in start there are very few players in this field how to lend loan to their customers. Most people went to banks for financing purposes. They will use these loans in business projects or for some other resources. At that time bank have very tough financing procedure which customer has to go through. But now there are multiple players available in the market that helps people to get the loan in a very easy way.
Banks required security against the loan which they issue in last so the people who did not have any assets to put as guarantee did not get a loan from banks. But when these new competitors come into the market they did not want any kind of asset guarantee for small amount loans and people can get loan easily.
Then in the past, you did not have the option for comparison if you ask for a personal loan to a bank you cannot compare personal loans details with any other reference. So you did not have any other option from which or with which you can compare these details.
But now there are many companies and online platforms which provide personal loan to a borrower. So they have plenty of options for the loan and they can compare it with each other to get a loan from the best option. Comparing the interest rate on loan is not the only option you have to compare the duration of return back. That it will suit you or not then you have to focus on installment which you have to pay the amount they required on each installment suits you or not. In the past, people do not have these options but now they have all these options.