As per a report, the total amount of loans disbursed digitally in India is expected to reach $1 trillion by 2023. This figure will be 5 times of what the numbers were back in 2018.
The rise of fintech companies has contributed significantly to the growth of online loans. Hence, individuals who require urgent financing for any monetary crisis do not need to stress as several financial institutions in our country offer digital personal loans. Anyone can avail without requiring to leave his or her residential premises. Such credits also come with numerous features and benefits which can help substantially to deal with various financial duties during a financial crisis.
Features of a Digital Personal Loan
A personal loan availed through digital means comes with multiple features and benefits which are as follows –
- Simple online application process
Most financial institutions offer a simple online application procedure with the help of which borrowers can apply for an online personal loan without leaving home. They are not required to visit the nearest branch of their desired lender and stand behind long queues.
Some lenders also offer smartphone apps with which individuals can apply for a personal loan without documents, by only a few clicks and swipes.
- Fast disbursal rate
Such types of credits are known for their fast disbursal rate. On approval of your online application, you can avail of such an instant loan quickly.
If you meet the demands of the eligibility criteria of the said loan, your financial institution will credit the funds in your account within 24 hours.
- Minimal documentation
The primary reason such loans have a fast disbursal rate is due to minimal documentation with no processing delays. Applicants are required to submit only a few necessary documents like salary slips, bank account statement, KYC documents, etc. in order to ensure instant approval.
- Substantial loan amount
With the help of a digital personal loan, borrowers can avail substantial amounts going up to Rs.25 lakh at lowest personal loan interest rate. The offered loan amount is based on how well you meet the demands of the personal loan eligibility criteria. Higher your eligibility, greater will be the loan amount disbursed by your lender.
- No need to mortgage collateral
Personal loans are a form of unsecured credit which means that borrowers are not required to mortgage any collateral while applying.
Hence, there is minimal paperwork involved and reduced verification procedures. This also contributes to a faster loan processing that helps a lender to disburse the loan amount to the borrower’s account quickly.
- No end-use restrictions
Another beneficial feature of digital personal loans is the absence of end-use restrictions. Compared to education loans, home loans, etc. borrowers can use the funds of a personal loan for any cause; usage of funds is not restricted to any specific kind of expense.
- Flexible tenors
As a borrower, you can opt for a repayment tenor ranging up to 60 months as per your financial capability. With the help of online tools such as a personal loan EMI calculator, you can select an EMI which is most suitable for your financial strength.
Reputed non-banking financial corporations such as Bajaj Finserv also offer the facility of Flexi Personal Loans with which you can reduce your EMIs substantially. This enables you to borrow as much money you require from your eligible loan amount without the need to go through the application process multiple times.
This NBFC also brings forth pre-approved loan offers which make availing loans hassle-free owing to a less complicated process. Such offers are also applicable to a host of financial products such as business loans, credit cards, personal loans, etc. Check your pre-approved offer by providing your name and phone number.
Digital personal loans consist of these multiple features and benefits mentioned above. Before applying for such a credit, it is advised to compare the interest rates offered by multiple lending organizations.
Must Read: Pros And Cons Of Instant Personal Loan