Some ten years back, applying for a personal loan was a cumbersome process. Unavailability of loan products in the market, less scope for comparison, lengthy application processing times, mountains of paperwork, you name it, and it was there.
Luckily, over time, technology has made applying for loans a whole lot easier. Now you can get a personal loan instantly, usually in a couple of days!
Here’s how technology forever changed the way we borrow personal loans.
Comparing lenders has become easier
What is the first thing you do when you want to borrow a loan? You compare different financial institutions and their loan offerings to zero in on a suitable one.
Today, thanks to the internet, you can access information like personal loan eligibilitycriteria, interest rates, customer testimonials, among others, in a matter of a few clicks.Hence, the time required for conducting comprehensive loan research is much shorter.
Instant document verification
Gone are the days when you had to wait for weeks to verify your documents during loan processing.
Nowadays, when you apply for a personal loan online, all you need to do is upload a PAN Card, Aadhar Card, income proof, bank account statement, income tax returns, and other mandatory documents on the lender’s website to get verified.
This cuts the time required to meet a lender in person for verification and makes the entire process paperless, even convenient.
Additional Read: Watch Out For These Red Flags When Applying For a Personal Loan
Quick loan approval
In addition to document verification, loan approvals are also quick. Lenders first make sure you are an eligible borrower using your Aadhar and PAN details. Then, these details are used to fetch your credit information report, which is checked automatically by a risk-assessment algorithm.
Finally, the lender goes through your credit score, number of credit accounts, and financial history to gain an idea of your creditworthiness. If you fulfil all the essential criteria, the loan is approved instantly. This means disbursements also happen quickly.
Such automation cuts the loan approval time, making the loan application process fuss-free.
Flexible loan terms
The amount of flexibility you have regarding loan terms like principal amount, tenure, personal loan interest rates, etc., on personal loans is astounding.
For instance, now you can pay the EMIs via online or offline modes. You can choose between bank transfer, mobile wallets, or UPI payments under the online mode of repayment. Some financial institutions also extend auto-debit facilities through Standing Instructions (SI), which you can set up during the application.
However, if you feel more comfortable paying EMIs offline, you can always visit the nearest branch and pay via cash or cheque.
Additional Read: How Personal Loan Can Be Used for Down Payments
Technology has impacted all steps of the personal loan application process, making it more convenient than ever. So, if you’re looking for a digital-first lender, turn to Tata Capital!
Along with loans customized to your unique needs, we also provide strong after-services and timely customer support. While you’re at it, you can understand your repayment obligations using our personal loan EMI calculator here.
What are you waiting for? Visit our site today to learn more about our products.