Feb 22, 2017 01:58 PM IST | Source: Moneycontrol.com

Paperless personal loans – How to make the most of them

From applying for the loan to submitting documents and getting it sanctioned, personal loans are just a few clicks away.

Paperless personal loans – How to make the most of them
Adhil Shetty

With the government steering India towards being less cash-dependent, individuals and enterprises including retailers and banks are increasingly adopting paperless means to carry out regular transactions. After the demonetization move, several economic activities have shifted online – and availing personal loans being one of them.

From applying for the loan to submitting documents and getting it sanctioned, personal loans are just a few clicks away. It can be availed without any human interventions and without the hassles of paperwork.

Here is everything you need to know about paperless personal loans:

What are paperless personal loans?

From applying for it to getting it sanctioned, paperless personal loans are entirely processed online. Unlike pre-approved loans, paperless loans are not pre-approved on the basis of the customer’s profile with the bank. You need to fill out an application form and furnish soft copies of all documents online, verifying which, banks sanction the loan. This process can be carried out remotely with a few clicks without any paperwork involved.

A paperless personal loan can be availed through an online loan aggregator, a bank, or financial institution selling such a product. For applying from a bank or financial institution directly, candidates can apply on the website by submitting scanned copies of documents online. While applying for a loan through an aggregator, you can upload documents on the website and the aggregator forwards the documents and gets the loan sanctioned on your behalf.

Before you zero in on a loan, make sure you run your research and compare with loans offered by other banks. The terms and conditions vary with banks so go through all the relevant notifications and clauses.

Benefits of paperless personal loans

•    You get the loan instantly – With the entire process carried out online, the turn-around time is reduced. Time taken for physical submission of documentation and verification is cut down. As a result, loans are funded within the shortest possible time.

•    Presence-less, paperless – Hassles are minimized in this process, as there’s no need for visiting the bank in person or sending documents through courier. You can compare different loans, pick the one that suits you and get it sanctioned, all through a few clicks while sitting on your couch.

•    Safe – With banks and financial institutions adopting updated information security measures, documents submitted online are protected from anti-malware and are safe. To upgrade your security, you can always have anti-malware and anti-virus installed in your devices. However, with your documents stored online, you don’t have to worry about losing them or misplacing them.

Paperless personal loans are easy to avail compared to the traditional ones but the onus of repaying it still lies with the borrower. So, before you get yourself in debt, make sure you have a repayment plan in place. Paying back on time will help you be on the good books of any bank in terms of credit history and repayment habits, thus improving your chances of availing loans in future.

The author is CEO of bankbazaar.com
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