From Paperwork to Pixels: The Impact of Technology on Instant Personal Loans
The advent of technology has revolutionized the way industries operate, leading to substantial transformations in their working methods and procedures. Automation has become the norm across various sectors, including business, education, healthcare, and finance. As a result, every industry is striving to harness the power of technology to its fullest potential.
Notably, the banking and finance sector has experienced significant changes in its processes, particularly affecting personal loans. Gone are the days of lengthy applications and countless document submissions, followed by months of waiting for approval. Thanks to technology, the personal loan application process has become remarkably swift and straightforward, allowing us to get a personal loan instantly. FinTech has revolutionized how we borrow!
Let’s explore how technology has influenced each step of the personal loan approval process.
How FintTech Transformed Personal Loan Applications
1. It’s Simple to Choose a Reliable Lender
The vast wealth of knowledge accessible through the internet is truly remarkable, empowering individuals with an exceptional ability to find information and solutions. This is especially evident when it comes to seeking a reliable loan provider. By conducting thorough research online, you can easily identify trustworthy lenders such as KrediBee, and explore their offerings in detail in a matter of minutes.
Moreover, many lending institutions provide an EMI calculator, simplifying the process of determining your personal loan’s EMI and offering you a clear understanding of your repayment obligations over time. With the added convenience of applying online, securing an instant personal loan has never been quicker or more accessible.
2. Alternate Eligibility Criteria for Credit
In the not-too-distant past, securing a personal loan was a difficult process, troubled by lengthy processing times and stringent eligibility criteria. Even if you had a steady income, you often found yourself excluded from the realm of top-tier loan providers due to your lack of an extensive financial track record on paper. This difficulty particularly affected newly employed individuals, leaving them on the sidelines.
However, times are changing rapidly. Today, certain lenders are embracing a transformative approach, considering factors such as bank statements, payment records for utilities and telecommunications, and even shopping histories to assess safety and trustworthiness when extending loans. This shift towards a holistic evaluation is fostering inclusivity within the personal lending landscape, enabling a more diverse range of borrowers to access financial assistance.
3. Online Personal Loan Application
The era of physically visiting a bank branch to secure a personal loan and engaging in face-to-face negotiations with lenders for interest rates and repayment terms has become a thing of the past. Now, the comfort of your home serves as the platform for online personal loan applications. With the aid of technology, every subsequent step, from verification to approval, is seamlessly conducted online.
By uploading essential KYC documents such as PAN card, Aadhar card, income proof, bank account statement, and other mandatory paperwork, borrowers enable lenders to verify their application and provide an in-principal approval based on eligibility. This digitized approach not only offers you convenience and efficiency but also facilitates easier tracking of all developments for lenders, rendering the entire process paperless.
4. Instant Verification of Documents
Long gone are the days when borrowers had to endure the tedious and time-consuming process of verifying documents for traditional bank loans, which could take up to two lengthy weeks. The financial landscape has undergone a remarkable transformation, introducing a swift and efficient experience. Nowadays, lenders have completely revolutionized the system, providing not just rapid processing from loan application to disbursal in a matter of minutes but also tempting pre-approved offers that guarantee immediate transfer of funds to your account as soon as you submit the required documents to your trusted loan provider.
Technology has transformed the personal loan industry. From tedious paperwork to instant digital transactions, borrowers can now access loans quickly and conveniently. Online lenders have made it easier for people with limited credit histories or low credit scores to access loans, enabling them to meet their financial needs. However, as technology continues to evolve, borrowers need to exercise caution when borrowing online and ensure that they understand the terms of their loans fully. By taking advantage of these technological advancements while being responsible borrowers, we can all benefit from the convenience that technology has brought to personal lending. So go ahead and explore your options in the digital space!
Author Bio: Tanvi Kaushik specializes in Content Marketing and works with the Digital Team at KreditBee – India’s fastest personal loan platform where self-employed and salaried professionals can easily avail of personal loans in just a few minutes when in need of quick funds. Tanvi writes to-the-point articles on personal finance and budgeting which are truly appreciated by her readers. She is committed to making money matters easy to understand even for the layman. Her commitment to her work doesn’t stop her from pursuing her hobbies of hiking, trekking and going on adventurous trips.