You would be aware of the time and documentation required if you had attempted to obtain a loan a few decades ago. Then, it was a time-consuming and exhausting process because there were so many documents to complete, attested photocopies to attach, and multiple trips to the lender.
However, the landscape of lending has seen a significant transformation in recent years due to the development of digital technologies and the fintech sector. Simply said, everyone now has access to a smartphone, putting the world at their fingertips.
Today, your smartphone serves as your portal to everything you need, including your investments, loans, clothes, gadgets, and medications.
Over the past ten years, the financial technology sector has grown quickly around the world. As a result, major corporations invested time and resources in creating products and services suited for this market, and this effect was also felt in India.
As a result, the outstanding portfolio of personal loans card has increased by roughly 48% in one fiscal year, from INR 26700 in March 2019 to INR 39700 in March 2020, according to a recent statistical analysis from The Times of India.
Features of Online Loans
Online loans are currently the most often used type of borrowing. However, you will realize that an online loan is a user-friendly product once you look at its features.
- No Collateral is Required
- Simple eligibility requirements
- Very little paperwork
- Speedy processing
- Flexible Options for Repayment
- There are no upfront fees
- Decreased interest rates
- Flexible Lending Options
Let's understand some of the features in detail:
Application tracking in real time
The ability to track your loan application in real-time is yet another fantastic benefit of personal loans. Once you've applied, you can see the status of your application using a computer or smartphone. In addition, you will receive regular updates from the lender on the progress of your loan application. By doing so, you may track the status of your loan application and provide any necessary supporting documentation.
Options for Flexible Repayment
Borrowers of personal loans have a variety of flexible repayment choices. Depending on their circumstances, individuals can choose between overdraft repayments, step-up options, interest-only EMI payments, and term payments. The most practical repayment option that matches the borrowers' monthly budget is their choice.
Speedy document processing
If your credit score is good, the documents and loan application are processed within a few minutes, and your loan amount will be in your bank account within 24 hours of applying for a loan. When you meet the eligibility requirements, the process starts and ends with the loan amount needed for disbursal.
Factors that led to the growth of people availing of online loans
The Coronavirus Outbreak
The pandemic has altered our way of life in many different ways. Most of the goods we require for daily life have to be purchased online as a result. People gradually embraced online transactions, whether they were purchasing food, clothes, or personal loans, after being compelled to embrace digital technology.
In reality, as a result of the pandemic, there was an increase in demand for online loans as consumers hurried to cover unexpected medical expenses, student loans, home remodelling loans, working capital difficulties, etc.
The simplicity, speed, and convenience of applying for a loan through an app without having to endure time-consuming procedures like completing a good amount of paperwork, waiting in line, and speaking with bank representatives, has also benefited online loan applications in India.
Economic Digitalization
The government has prioritized digitization in recent years to boost economic growth. The element encouraged both customers and lenders to use digital lending infrastructure in addition to helping to foster the development of digital literacy.
Excellent read! Your blog effectively captures the transformative impact of online loans on the loan industry. The convenience, speed, and accessibility offered by online loan platforms have indeed revolutionized the borrowing experience. The insights into the changing dynamics, from streamlined application processes to faster approvals, highlight the evolving landscape of financial services. It's fascinating to see how technology is enhancing efficiency and providing borrowers with more options. Kudos for shedding light on this significant shift in the loan industry!"
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