Are you someone who hates visiting a lending institution physically for loan-related purposes, especially applying for a Personal Loan? Then digitisation is surely a blessing for you! Gone are the days when people had to wait months to get their Personal Loan documents approved by lending institutions. With digitisation, it has become easier to apply for an instant Personal Loan online in a hassle-free manner.
What exactly is digitisation? Let’s start with understanding the concept.
Understanding the concept of digitisation in the lending industry
Digitisation in the lending industry refers to using digital technology to automate and streamline the loan application, approval, and disbursement processes. This involves using digital platforms, systems, and tools to manage customer data, loan applications, and other critical functions in the lending process.
Digitisation has brought many benefits to the lending industry, including increased efficiency, improved customer experience, increased accessibility, and better data management. By automating many of the manual processes involved in lending, digitisation has made it easier for borrowers to access loans and for lending institutions to manage their operations and assess risk.
Examples of digitisation in the lending industry include online loan applications, digital contract management systems, and real-time loan tracking systems. With the increasing popularity of digital lending, many traditional financial institutions are also adopting digital technologies to remain competitive.
How has digitisation been a blessing for online Personal Loans?
Digitisation has made applying for and receiving Personal Loans much more efficient and convenient. Here are a few ways in which digitisation has transformed the Personal Loan industry:
Online Application
Borrowers can apply for personal loans online without visiting the NBFC or financial institution. Many lending institutions now use digital verification processes, allowing borrowers to digitally submit required documents, such as ID proofs and income proofs. This reduces the time and effort required to apply for a loan.
Automated Verification
Digitisation has enabled the automation of various verification processes, such as identity verification, income verification, and credit score check. This has significantly reduced the time it normally takes to process a loan application.
What’s more, if your KYC is updated with your Aadhaar and PAN, you don’t need to upload or submit the documents. You can get them verified online within a matter of minutes.
Instant Approval
With the help of algorithms and advanced decision-making tools, lending institutions can approve Personal Loan applications almost instantly. Borrowers can get a loan approved and disbursed instantly.
Paperless Processing
Digitisation has made it possible to process Personal Loans without needing physical documentation. Now the borrowers are not required to submit Personal Loan documents physically. They can now upload digital copies of their documents, making the process faster and more convenient.
24/7 Availability
The best part of an online personal loan is that these are available 24/7, meaning borrowers can apply for a personal loan at any time convenient for them from anywhere using a smartphone.
Easy Repayment
Borrowers can now make repayments online, which implies flexible repayments without visiting the NBFC or financial institution. This has made the repayment process more convenient and less time-consuming.
7. Robust secure system
Security is an important aspect of any financial institution. With the option of getting instant Personal Loans online, security was an essential question. But with digitisation, the process of Personal Loans has become safer than ever before.
8. No collateral requirement
Taking a Personal Loan is hassle-free, as it is an unsecured loan, which means the borrower does not need to provide any collateral as security to obtain the loan.
9. Seamless experience
Applying for a Personal Loan online offers users a seamless experience as the process is quick and easy. It takes little time to complete the loan procedure, from application to approval, followed by disbursal.
Are you eligible for an Online Personal Loan?
Now that you know the benefits of digitisation for applying for a Personal Loan online, let’s check if you qualify for the standard eligibility criteria:
Must be a salaried professional with a decent income.
Minimum monthly income should be Rs 20,000 per month.
Must be between 21 and 58 years of age.
A credit score of 630 or above would be great.
Minimum work experience of 12 months is required.
Working for at least six months in the current organisation.
Are EMI Calculators helpful for online Personal Loans?
With digitisation, it has also become easier to calculate your EMIs before applying for a Personal Loan online. The calculator considers the loan amount, tenure, and interest rate to calculate the EMI and total interest payable.
This tool is convenient and helps you plan your loan repayment in a better and more organised manner. Using the personal loan EMI calculator, you can avoid overburdening yourself with high EMIs and ensure that you are not defaulting on your loan repayments.
So, if you are planning to take an instant loan online, use a Personal Loan EMI calculator available on the websites of reputable NBFCs. It will help you get an accurate estimate of your monthly payments and plan your loan repayment accordingly for better financial planning in the future.
Bottom line
Digitisation has profoundly impacted the loan industry, changing how loans are applied for, approved, and managed. It has brought a lot of conveniences and ease to the loan application process.
Nowadays, you can apply for a personal loan online from the comfort of your own home. You need to provide your personal and professional information and upload the required documents, and the process can be completed in a matter of minutes. This has greatly reduced the need to visit lending institutions and has made the application process much faster and more efficient.
Additionally, with the advent of digital technologies, the loan approval process has become quicker and more transparent. Overall, digitisation has revolutionised how people apply for Personal Loans and has made the process much easier and more convenient.
