Paperless Loan Advantages

Due to digitization, paperless personal loans are getting popular amongst the borrowers. Paperless personal loans have a seamless process right from their application to their disbursement in virtually no time. This results in the borrowers getting the required funds quickly in their time of need.

What Is A Personal Loan?

A personal loan is an effective way to meet all your stressful financial needs. A personal loan is an unsecured loan thus it requires no collateral deposit. Most of the personal loans have no end-use restrictions thus they can be used to meet any financial need like a wedding, house refurbishment, medical emergencies or a vacation. Personal loans require minimum documents like proof of ownership, income and address for the application to be processed. Some lenders may have eligibility conditions like stable monthly income and a good credit score.

Nowadays, borrowers can avail a personal loan just like purchasing a commodity online. The borrowers need to fill the application, upload scanned copy of required documents and after the approval of the loan; funds are directly transferred to the borrower’s bank account.

A Green Approach: Online Paperless Personal Loan

In recent past a lot has changed how customers are dealing with their banking needs. Most of the customers require quick solution to their banking and financial needs. Government is also building a cash-free infrastructure. The advent of digital markets in the financial sector has led to paperless personal loans.

How Does Paperless Loan Work?

Financial institutions find it easier to receive and verify the digital documents before approving a loan. Potential borrowers also favour online personal loans as they do not visit the branch and fill out the form manually. The borrower can submit the scanned copies of the required documents. The online loan can be applied from anywhere and get it approved easily.
There are many instances where easy paperless personal loans can be helpful:

• As financial support in times of financial crisis
• During medical emergencies
• Meeting unplanned wedding expenses
• To make a sudden repair to your house
• To meet the expenses of business operations

Eligibility To Apply For An Online Personal Loan

In order to have a seamless process of availing a loan, you must fulfil the conditions given below:

• You must be an Indian citizen
• You must be between 22 and 58 years
• You must have a good credit history and a good credit score of minimum 750
• You must have the soft copies of the required documents

List Of Documents Required For Online Personal Loan

The process of an online personal loan can be fastened if the borrower has the following documents in the form of a soft copy

• Proof Of Identity –

Aadhar card, PAN card, Driving license, Voter’s ID card or any other valid ID with your photo and name on it

• Proof Of Residence –

Utility bills, Passport, Ration card or Voter’s ID card

• Proof Of Service –

Your work ID card of your current employment

• Financial Documents –

You may need to submit your bank statements, Form 16 or equivalent tax form and salary or income slip of last 2 months

Benefits Of Applying For Online Paperless Personal Loan

• No Paperwork –

Since the whole process is digitized, the borrower no longer is required to visit the branch with the required documents and undergo the tedious process of completing multiple forms manually.

• Quick Disbursement –

As soon as the documents are verified the loan is disbursed in to the borrower’s account directly. You may also access pre-approved loan which also makes the process faster.

• Eco-Friendly Approach –

Using digitized approach to avail a loan saves substantial quantity of papers making it an environment friendly approach.

• Low Cost –

Lenders can reduce the cost of form printing and other operational costs by promoting online paperless personal loans. The lenders can pass on the benefit of reduced costs to the borrower. Thus, attracting more customers.

• High Security –

It is always a risk of losing an important document in the traditional way of applying for a loan. In the paperless approach all the required documents are scanned and stored digitally. Hence the risk involved reduces manifold times.

Conclusion

Applying for a personal loan online is easy and hassle –free process. It is less time-consuming where you do not need to manually fill out multiple forms. Once the documents have been verified, the loan amount is credited to the borrower’s account.

IIFL Finance understands the need for quick capital and has designed its loan products to come with the lowest personal loan interest rates. Personal loans are flexible and include customised repayment options, keeping in mind the capital needs of borrowers. Furthermore, IIFL Finance personal loans have no hidden costs or charges. Once you apply for a personal loan with IIFL Finance, you can be assured of an ideal loan product with utmost transparency.

Frequently Asked Questions

Q1. Are instant loan apps safe?
Ans- You can safely apply for loans online if the instant loan app works with an authorized and reputed bank or NBFC.

Q2. Do instant personal loans require collateral?
Ans-  No, you do not need to pledge any collateral for an instant personal loan.