According to the report, the total amount of digitally disbursed loans in India will reach $1 trillion by 2023. This figure will be 5 times higher than in 2018.
The growth of fintech companies has contributed significantly to the growth of online lending. Therefore, people who need urgent funds due to the monetary crisis need not worry because several financial institutions in our country offer digital personal loans. Anyone can use it without leaving their residence. These loans also have many functions and benefits that can significantly help in solving various financial problems during a financial crisis.
Digital personal loan features
Personal loans obtained through digital means have several functions and advantages, which are as follows:
- The simple online application process
Most financial institutions offer a simple online application process where borrowers can apply for a personal loan online from the comfort of their home. They do not need to visit the nearest branch of the desired lender and stand in long lines.
Some lenders also offer smartphone applications where people can apply for a personal loan without paperwork with just a few clicks and swipes.
- Fast payout rate
This type of loan is known for its high disbursement rate. After your online application is approved, you can take advantage of the instant loan quickly.
If you meet the eligibility criteria for the specified loan, your financial institution will credit your account within 24 hours.
- Minimum Documentation
The main reason this loan has a fast disbursement rate is minimal paperwork and no processing delays. Applicants only need to provide some required documents such as salary receipt, bank statement, KYC documents, etc., to ensure instant approval.
- Significant Loan Amount
With the help of digital personal loans, borrowers can receive significant amounts of up to Rs 25,000 with lowest interest rates for individual loans. The loan amount offered depends on how well you meet the eligibility criteria for a personal loan. The higher your eligibility, the more loan amount your lender will pay off.
- No need to guarantee collateral
Personal loans are a form of unsecured loans, which means that borrowers are not required to pledge any collateral when they apply.
Therefore, a minimum number of documents and a simplified verification procedure are required. It also facilitates faster loan processing, which helps lenders quickly transfer loan amounts to borrowers’ accounts.
- No end use limit
Another useful feature of digital personal loans is that there are no end-use limits. Compared to education loans, home loans, etc. Borrowers can use personal loan funds for any purpose; the use of funds is not limited to certain fees.
- Flexible tenor
As a borrower, you can choose a repayment term of up to 60 months depending on your financial capabilities. With online tools such as the Personal Loan EMI Calculator, you can choose the EMI that best suits your financial strength.
Well-known non-bank finance companies like Bajaj Finserv also offer Flexi Personal Loans, with which you can drastically reduce your EMI. This allows you to borrow as much money as you need from the respective loan amount without having to repeat the application process several times.
This NBFC also puts forward a pre-approved loan offer that makes it easy to get a loan through a less complicated process. The offer also applies to various financial products such as business loans, credit cards, personal loans, and more. Check your pre-approved offers with your name and phone number.
Digital personal loans consist of many of the above-mentioned features and benefits. Before applying for such a loan, it is advisable to compare the interest rates offered by several lending institutions.