5 MinsJune 22, 2022
If you need some money urgently, you can apply for a personal loan via a bank or a financial institution. The biggest advantage of a personal loan is that it can be used for all of your consumption needs like home renovations,
medical emergencies, plan a wedding or even embark on a holiday.
One of the most significant evolution in
recent years, fuelled by the widespread use of the internet in India, has been the digital personal loans.
What are personal loans?
By their very nature, personal loans are unsecured loans that banks provide to individual borrowers, based on their creditworthiness. In other
words, banks check the income statements and details of the borrowers' earlier loans to get an idea of whether they will be able to repay the loan on time.
Since no collateral is involved, such loans are much easier to process. All the lender needs are the borrower’s KYC details and income records to prove that he/she will be able to service and repay the loan.
As a result, it is now possible to avail a personal loan online i.e. digitally. It is an easier and more convenient way to get a loan.
A digital personal loan enables you to get instant access to a loan as funds are generally disbursed immediately, making it a boon if you need funds urgently, for instance, for a medical emergency or an unplanned trip.
Some of the benefits that online personal loans come with are:
- You can apply for the loan from anywhere and at any time, even from the comfort of your bed.
- Your KYC and income documents can be uploaded online to get instant approval.
- The processing time of these loans is shorter. Axis Bank, for example, can process an application in hours – if not minutes – and disburse the loan in the time it takes to watch a movie online.
- While applying, your physical presence is not required at the financial institution, making it highly convenient.
- The personal information provided during the application process is securely stored.
[Also Read: How Long Does It Take To Get a Personal Loan Approved?]
With more people owning smartphones, lenders have taken advantage of the online opportunity available to help people apply and get access to loans instantly from anywhere in the country. Today obtaining a personal loan online is almost as easy
as watching your favourite series on an OTT platform.
- Convenience: The instant approval of online personal loans has changed the financial industry. Instead, people would opt to apply for a loan online from their homes or workplace rather than go to a bank and spend hours
completing the application and approval process.
- Minimal paperwork and paperless transactions: The borrower is merely required to upload documents online.
- Pre-approved personal loans: If the borrower has been a customer of good standing with a bank, the process is even more convenient. Once they opt for the loan, the disbursal can happen in minutes.
Axis Bank offers a range of Online Personal Loans tailored to meet the needs of most borrowers. To know online. You can use Axis Bank’s personal loan EMI calculator to know more.