Digitisation of banking services has profoundly influenced the way people live their day to day life. Today, applying for an instant personal loan is a seamless process, and requires you to make as little efforts as booking a cab. As the competition among lenders for a personal loan is immense, lenders have made it possible for an applicant to get a personal loan online within a few minutes of approval. As a personal loan does not require any form of collateral, the process becomes seamless.
You can compare the personal loan interest rates offered by various lenders and choose the one which is economical and can fulfil all your requirements in the best possible way. Today, you do not have to wait for a few days like old times to get the money in your bank account. In this article, we will cover up to five prime areas where technology has played a crucial role in making the entire personal loan process paperless.
Top 5 ways technology helped in bringing the idea of a paperless personal loan to life:
1. Instant approval:
People apply for a personal loan due to a wide variety of reasons. However, it comes in handy in case of emergency. Technology allows lenders to offer quick approval of the personal loan. You can verify your loan eligibility on your lender’s website, and if your profile matches their norms, you can apply for the loan instantly. All you need to do is submit the required documents, and your lender will process the loan in no time. Lenders will go through your credit history, identity verification, and you will get approved instantly.
2. Loan tenure flexibility:
Personal loans can stretch for up to five years, so in case you need a significant amount, you can opt for a larger tenure to accommodate your current financial health. Many lenders allow online prepayment facilities in case you get the additional cash flow, and you can make easy repayments and save on the interest of your loan.
3. Interest rates:
Interest rates play a crucial role in deciding your overall liability over the personal loan. Today, you can quickly check out the interest rates offered by various lenders on their websites, thanks to the access to fast internet and technological developments over the past two decades. You can use a personal loan interest calculator on your lender’s website to know your exact liabilities on applying for a personal loan so that you can manage your finances accordingly.
4. Document verification:
There was a time when applying for an instant personal loan required you to bring all the documents to your lender to get them verified multiple times before the lender approves your loan. At times, you would have to wait in long queues to get your turn, and it wasted a lot of your time. Today, verification of documents is automatically handled by the lender while you submit them online on their website. You need not wait for hours for your turn. Your lender will send you an alert as soon as they finish the verification process.
5. Quick disbursal:
Digital payment systems have made it possible for people to get their loan amount disbursed directly into their bank accounts. Digital payments have allowed you to get the financial assistance you need as soon as the loan gets approved, which is crucial in case of an emergency.
Technology has made the whole process of a personal loan application seamless for people, making financial aid more accessible than ever before. It has helped lenders provide their wide range of services to their customers while making it easier for customers to access these services.