The world is quickly progressing into the digital domain. Everything from paying utility bills to transferring money between bank accounts is being done online. Likewise, the lending ecosystem has also undergone a paradigm shift. Digital lending platforms have, in recent years, emerged as the next big thing in the FinTech space.
Many small business owners and entrepreneurs are already turning to digital lenders for borrowing SME loans. But are such platforms reliable? Let’s find out.
Digital lending vs traditional lending
1. Minimal paperwork:
We are all aware of the endless paperwork that greets us every time we apply for a loan from traditional lenders. You need to fill forms, attest documents, submit photocopies, provide references and a lot more to initiate the loan process.
Digital leaders, on the other hand, keep documentation to the bare minimum. All that is required to get a loan approved digitally is a stable internet connection. The rest happens with your authentication without the hassle of loads of paperwork.
2. Quick loan processing:
Traditional lenders often take 6-7 working days to process a business loan. In contrast, the processing happens quickly via digital lending. You can upload the scanned copies of all the necessary paperwork on the lender’s website and authenticate essential details using secure channels.
Additional Read: Business Loan Industry Trends for the Last 5 Years
3. Convenient loans:
Unlike traditional lending, applying, processing, and loan disbursal is a user-friendly process with digital lenders. You can apply for the loan from the comfort of your couch at your convenience!
4. Handy tools:
Many digital lenders host resources like business loan EMI calculators to help borrowers get accurate EMI estimates and budget their finances well. You can compare the best deals available online and pick the lender of choice. Further, you can also track every stage of your loan process online. Traditional lenders rarely provide such tools.
5. Superior privacy:
Privacy is of utmost importance when it comes to matters of finance. You always need to be careful of the paperwork when entering your bank. But as you can apply for a digital loan from the safety of your home, you don’t have to worry about somebody else getting a glimpse of your personal and financial details. Moreover, all the digital avenues are entirely safe and encrypted to ensure maximum security of operations.
6. Access to multiple lenders:
Digital lending solutions allow borrowers to contact various lenders at once, compare the business loan interest rates, and choose the best loan deal. This is not always the case with traditional lending. You have to visit multiple financial institutions and go through the hassle of filling numerous forms to get all the necessary information.
Additional Read: Trends Transforming Online Business Lending
Clearly, digital lending solutions are leading the way for convenient business finance. Not only are they reliable, but also incredibly seamless and accessible to even small business owners.
Apply for business finance online!
Get quick and easy access to competitive business loans at Tata Capital! Enjoy minimal documentation, quick processing, attractive interest rates, and flexible loan terms. To know more, log on to our website or contact us today!