10 reasons to choose digital personal loans over traditional bank loans

When you urgently need funding for medical bills, education, travel, home renovation, or any unanticipated expenditures, a personal loan becomes a handy solution. With the rise of digital banking, borrowers are now leaning towards digital personal loans instead of traditional ones.

Here is a quick look at ten key benefits of selecting digital personal loans over traditional loans, particularly when applying to IDFC FIRST Bank’s FIRSTmoney Smart Personal Loan.

1) Quick approval and disbursal
 

Digital personal loans offer instant approvals. For example, if your loan eligibility is confirmed for a FIRSTmoney personal loan, funds are credited to your bank account within 30 minutes. Traditional loan options may take more time, sometimes a few days or even a few weeks.

2) Paperless process
 

No need to wait in long queues or submit heaps of documents. Digital loans allow you to apply from anywhere with zero paperwork. With IDFC FIRST Bank, you only need your physical PAN card for video KYC, and that is it.

3) No foreclosure charges
 

Traditional banks may penalise you for prepaying in case of fixed interest rate loans. But digital credit options like the FIRSTmoney levy zero foreclosure charges. This gives you complete independence to close your loan whenever you are ready for it without any charges.

4) Flexible tenure
 

Unlike rigid and fixed repayment options in traditional credit, digital personal loans permit you to select a repayment tenure that matches your monthly budget. This makes repayment stress-free.

5) Transparent procedure
 

Digital lending platforms show rate of interest, EMIs and fees upfront. With IDFC FIRST Bank, you can avail rates, which begin from just 9.99% p.a., with zero hidden fees and charges.

6) Easy eligibility check
 

Online tools assist you to instantly check out if you qualify for a loan. With IDFC FIRST Bank, you just need to enter your basic info and know your loan status in a few seconds. So, there is no need for waiting, zero guesswork required.

7) Access to multiple on-demand loans
 

Once approved, you can avail additional loans later depending on your approved loan offer - on-demand. This is not possible with traditional loan options, where you must begin the application all over again.

8) Secure and private
 

Digital loan applications from reputed banks are a part of a secure banking infrastructure. With encrypted verification steps, your data stays safe throughout the loan process.

9) Convenient for all professions
 

Whether you are salaried or self-employed, you can apply easily. IDFC FIRST Bank supports both categories - provided you meet the age (21–60 years) and CIBIL score (730+) requirements.

10) 24x7 availability
 

Traditional banks may process during banking hours. But digital personal loans can be applied for anytime even on holidays or weekends - directly from your phone.

Ending note
 

Digital personal loans bring unmatched ease, speed, and flexibility, making them a smarter choice over traditional loans. With IDFC FIRST Bank’s FIRSTmoney smart personal loan, you benefit from quick disbursals, no foreclosure charges, paperless processing, and full transparency.