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Personal Loan

Digital Lending 101: How Instant Personal Loans Work in India 2025

07 Aug 2025 by Team FinFIRST

Digital Lending Process for Personal Loans; How Instant Personal Loans Work in India

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Everything you need to know about 100% digital personal loans with a focus on how IDFC FIRST Bank's FIRSTmoney personal loan offering.

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Plan a five-star vacation without breaking your holiday budget

A complete guide to getting instant approval on digital personal loans

How Digital Lending Is Changing the Credit Game

Ten years ago, getting a personal loan meant weeks of paperwork, physical visits to a branch, and constant follow-ups. Today? You can get the funds you need within a few hours — entirely online.

Welcome to the world of digital lending, where fintech meets finance to help you borrow smarter, not harder.

At IDFC FIRST Bank, we’re leading this transformation with our FIRSTmoney Personal Loan which is built for salaried professionals and self-employed individuals looking for speed, transparency, and zero-hassle personal financing.

So, What Exactly Is a Digital Personal Loan?

A digital personal loan is an unsecured loan that can be applied for, processed, and disbursed completely online without any physical documentation or branch visits.

All you need is:

A smartphone or a computer
PAN + Aadhaar (linked with mobile)
Salary slips or bank statements (to be uploaded digitally)
A good credit score (typically a CIBIL score above 700)

How the Process Works : Step-by-Step

Here’s how digital personal loans (like FIRSTmoney) work in India in 2025:

Step	What Happens
1. Eligibility Check	You share basic details: income, residence, PAN to check your eligibility
2. Loan Offer Generation	Based on credit score and profile, the system generates real-time, customized offers
3. Document Upload	Upload salary slips, bank statements, or link your bank account via netbanking
4. eKYC & Verification	Aadhaar-based OTP verification + digital bank statement validation
5. Instant Approval	Automated system verifies and approves application, often in a few minutes
6. Disbursal	Loan amount is credited to your bank account within a few hours

No manual intervention. No queues. No waiting weeks for a callback.

FIRSTmoney by IDFC FIRST Bank: What Sets It Apart?

FIRSTmoney Personal Loan Highlights

Loan amount from ₹50,000 to ₹10 lakhs
Flexible tenure: 9 to 60 months
Fully digital process: No paperwork or branch visit
Interest rates starting from 9.99% p.a.
No prepayment or foreclosure charges
Instant eligibility check + quick disbursal

Built for working professionals, freelancers, and anyone with a strong credit record.

Sample Calculation: How Affordable Are These Loans?

Let’s say you take a ₹1,00,000 loan with FIRSTmoney at 9.99% p.a. for 24 months.

Loan Amount	₹1,00,000
Tenure	24 months
Monthly EMI	~₹4,614
Total Interest Paid	~₹10,745
Total Repayment	₹1,10,745

You can also prepay anytime with no extra charges, helping you save more in the long run.

PRO TIP: Calculate your personal loan EMI using this calculator.

Common Questions About Digital Lending

Is it safe?

Yes, as long as you are taking loans from reputed banks like IDFC FIRST Bank that use encrypted, RBI-compliant platforms for secure document and data handling.

Does it affect my credit score?

Only when you apply (a "hard inquiry") or miss payments. If you repay on time, it in fact improves your credit score.

What if my CIBIL score is below 730?

You may still get approved but likely at a higher rate or for a smaller amount. Always check pre-approved offers first.

Smart Tips Before You Apply

Compare rates & processing fees – Many loan apps hide their charges in the fine print. FIRSTmoney is fully transparent by displaying all the applicable charges upfront.
Check your credit score – Aim for 730+ to get the best interest rates.
Borrow only what you need – Borrowing more than what you need can be risky. Consider your fixed monthly expenses before taking a decision.
Don’t apply to multiple lenders at once – It triggers multiple hard inquiries, which may hurt your score.

Final Word: Personal Loans, Powered by Tech

Digital lending is no longer the future — it’s today. If you need quick funds for a wedding, medical emergency, travel, or debt consolidation, a digital personal loan can offer flexibility without friction.

And with IDFC FIRST Bank’s FIRSTmoney loan, you also get:

100% online journey
Zero hidden charges
No prepayment penalty
Customer-first experience

Ready to Try Smarter Lending?

Check your eligibility in under 2 minutes and experience paperless borrowing starting at 9.99% p.a.

Apply For FIRSTmoney Personal Loan

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

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