Manu plans for a world tour from this New Year. Although she has ₹2,50,000 in savings, she wishes to take ₹ 3,00,000 lakh personal loan through a digital app of a private bank. The process ends very simply, as Manu completes all her KYC details digitally from her home. The algorithm of the app analyses her data and sanctions for loan approval to the bank.
Her spending for a world tour is:
| Loan Amount | ₹ 3,00,000 | Her Savings |
| Interest Rate | 12% | ₹ 2,50,000 |
| Tenure | 5 years | |
| EMIs | ₹ 6,673 | |
| Grand Total | ₹ 3,00,000 + ₹ 2,50,000 | ₹ 5,50,000 (for her world tour) |
Technology eases all loan applications through digital platforms. You can apply for any loan through an online website or in a digital app. All the financial institutions have started developing their digital platforms for banking transactions. The report of Boston Consulting Group predicts that the digital lending market in India will reach $1 trillion by 2030.
Are you tired of visiting the bank for a loan? Do you know how technology helps you get a personal loan? This blog expounds on the role of technology in the personal loan industry.
Introduction
A personal loan is a helping tool that provides instant access to money to meet your financial needs. Conventional banking requires you to visit the bank and submit all your KYC details personally. This process stretches the period of loan approval.
Technology revolutionises the loan approval process by eliminating the conventional banking method. The use of technology in the financial sector enables everyone to access the banking service. The emergence of digital lending platforms refines the personal loan industry.
The Digital Revolution in the Personal Loan Industry
In contemporary times, the personal loan industry witnesses a paradigm shift in the loan market. It is because of the advancement of technology. The traditional lending method is characterized by lengthy processes that are transformed into digital platforms, which is time-saving. This innovation is not a trend but a promise to redefine the future of the personal loan market.
- Online Application
You can apply for a loan through an online website. From the website, you can view different types of loans. The interest rates also vary by the type of loan. Choose a loan application that suits your financial capability. Through an online portal, you can upload all the KYC details for verification. For example, you can apply for a Fresh Personal Loan in Loans Jagat.
- Quick Approval and Disbursement
Conventional banking requires more days or weeks to sanction a loan. But today’s technology applies algorithms and data analytics to process the loan application. This examines the applicant’s CIBIL score and credit report. So, the digital platforms approve the loan immediately and disburse the amount into your account. For example, Axis Bank’s app Axis Mobile approves a loan amount of ₹ 2,00,000 immediately.
- Flexible Options
All traditional banking expects you to meet their criteria for loan sanction. But on digital platforms, you can choose the loan amount, repayment terms, and interest rate that match your credit report. There is transparency in approving your loan amount. You can compare the loan offers of all the banks. For example, the interest rates for personal loans are 10.50% to 16%.
- Easing Documentation Process
The technology eliminates physical visits to banks. Because you can upload scanned copies of KYC documents on the website or digital platform. The algorithms of digital mechanics process your loan application. It simplifies the loan approval process.
- User-Friendly Experience
Even a person with minimal education can access the website and digital platform for loan applications. All the steps involved in a loan application are simple. Conventional banking has complex terms to understand the loan application, but digital platforms come with simplified language. For example, in digital apps, the loan amount ₹ 3,00,000, interest rates of 10.50%-16%, and period are displayed.
- Financial Inclusion
Technology connects the remote areas of our country with banking through digital platforms and online websites. One can apply for a personal loan application from anywhere. Traditional banking covers only limited areas and requires a physical visit for KYC verification. But technology eradicates those complexities and approves the loan for immediate disbursement. For example, during COVID-19, many people preferred digital apps for ₹ 1,00,000 loan requests due to curfew.
Conclusion
The fusion of technology with the personal loan industry is a boom in the banking sector. Technology eases the loan application process for both the lender and the borrower. It directly connects them without any interference. A borrower can check his suitable personal loan according to his financial capability.
