In a growing economy like India, the availability of credit and quick loans is important for all. To cater to this need, the banking and financial services industry has made several efforts to digitize their products and services. This has led to the creation of financial products and services such as online personal loan and peer to peer lending.
In a traditional scenario, availing of a personal loan is a tedious process. You are required to personally visit a bank branch for a lengthy KYC procedure and submission of various documents. Even then, the submission and approval process takes several days.
On the other hand, fintech companies like MoneyTap have entered the lending space to offer online personal loans that are not only quick and convenient, but the entire process can be completed from the comfort of your home. Browse online to find a product that suits your need and upload soft copies of your KYC documents. Authentication and verification take 24 to 36 hours, after which the loan amount is disbursed into your account.
Apart from the speed and convenience, there are various reasons why online personal loans are taking the banking world by storm –
1. Easy Online Access & Less Paperwork
- The biggest advantage of online personal loans is that you can access the online lending platform at your convenience.
- All KYC documents maybe submitted as soft copies. This drastically reduces paperwork.
2. Hassle-Free Customer Experience
- You can access the lending platform from your smartphone, tablet, or computer at your convenient time.
- The reduced turnaround time to avail of a loan, the ease of uploading KYC documents online, and the quick approval process gives you a hassle-free customer experience.
3. Faster Approval
- Approvals are now faster with the help of digital technology and e-KYC linked to Aadhaar for online personal loans.
- Lenders assess your creditworthiness using smart algorithms that check different data points. This speeds up the underwriting process.
4. Data Security Systems
- Online personal loans applications and websites are based on advanced fintech software. This helps to ensure the security of your financial and personal data.
- Data security systems such as encryption and website security standards are followed to keep your information safe.
5. Creative bouquet of financial products
- The online personal loans industry has built upon traditional financial products to include new and smart product offerings for loan seekers.
- One of the most innovative developments through fintech has been the peer-to-peer lending model.
- This model allows lenders to connect directly with borrowers and earn a direct interest.
In the end, it makes sense to say that online personal loan systems are an upgrade to the traditional lending procedure and are more relevant to the consumers of our age. The fintech industry has challenged the banking processes at every step and will continue to do so. The flexibility offered by online personal loans to loan seekers is revolutionary and makes it a preferred method of borrowing today.
Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge the name change) and works with MoneyTap, India’s first app-based credit-line. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters and when they want to get a loan. He has made it his life’s mission to help and educate people on various financial topics, so email him your questions at [email protected].