Gone are the days when you used to wait for weeks to get your personal loan sanctioned. Earlier, getting a personal loan was a tedious task involving considerable paperwork, a time-consuming process, and constant physical visits to banks or lending institutions. With the advent of technology and digitization of processes, especially after COVID-19, online personal loans have been changing the financial industry. What earlier required 14-15 days can now be done in a maximum of 2-3 days.
Digitization has compelled banks and other financial institutions to adopt technology and offer online facilities to their customers, including the online loan application facility. The entire application can be filled online in easy steps through websites and mobile phone applications, thus, eliminating the hassle of physical visits, paperwork, photocopies and more.
Benefits of Online Personal Loans
The perks of online personal loans are as follows:
- Affordable interest rates: Personal loan interest rates are more affordable than other unsecured lending arrangements like credit cards. Currently, the personal loan interest rate starts at just 10.99% per annum. Lower interest rates reduce the borrower’s EMI burden.
- Quicker process: As the entire application process can be completed online, this has led to a considerable reduction in the processing time. Personal loans are inherently quick-approval products because of the simple personal loan eligibility criteria. Digitization has further reduced the time required to get these loans. Most banks now process and approve a personal loan application within just 1-3 days.
- Easy access to information: Different banks have their own terms, charges, and eligibility criteria for their loan products. With digitization, customers do not need to physically visit each and every bank to select the best one. Most banks display their terms, charges, and criteria on their websites which can be accessed by the borrowers anytime.
- Multiple options: Online applications have made comparisons easier, thus providing borrowers with multiple options. Through detailed comparison, borrowers can select banks that satisfy their requirements and provide a cost-effective personal loan facility.
- Transparency: Digitization has promoted transparency in the loan process. Earlier, due to the lack of information availability, borrowers had a sense of distrust. Now, with all information available at their fingertips, borrowers can easily make informed decisions.
- Paperless process: Now, documents can be uploaded directly on the bank’s website or with the online loan application form. Digital signatures further facilitate and simplify this online application process, thereby making the entire exercise a paperless one which can be completed from the comfort of one’s home.
Personal Loan EMI Calculator
Another benefit of online personal loans is that borrowers can know the EMI amount in advance, before applying for the personal loan. With the personal loan EMI calculator, the borrower needs to enter the loan amount, personal loan interest rate, and tenure to get the exact amount of the EMI, due monthly.
Bottom Line
Personal loans are some of the most preferred facilities used by borrowers to meet their financial exigencies. Being an unsecured loan, it requires no collateral security from the borrowers. Apart from that, there are no restrictions as to the utilization of the loan amount. Borrowers can utilize the funds to fulfill any of their requirements like meeting medical emergencies, making purchases, travelling or marriage expenses, for educational or business purposes, among others. This makes personal loans a popular choice among borrowers. With easy application and simple criteria, they help you can meet your financial needs in a much easier manner than ever before.
