5 ways online Personal Loans are changing the whole financial industry

There was a time when getting a small personal loan was a cumbersome task. But not anymore. How has the advent of internet and digital technology changed the personal loan and financial industry paradigm? Let’s discuss.

Ask your parents or any other elders whether they would have envisioned being able to finalise a personal loan online within minutes many decades ago, and the answer would be a resounding ‘No’. Today, smartphones and the proliferation of internet have changed the way we live. And it is the paradigm of personal loan and finance that has probably benefited the most!

Today, we have become so used to managing our personal finances through our smart devices that it is difficult to appreciate what a revolution it has been. Imagine not having to visit multiple banks, stand in queues, fill out cumbersome forms multiple times, and then wait for a month to get a small ticket personal loan approved! Now, all it takes is a few taps on the mobile banking app. Phew!

So, how has the online personal loans phenomena changed the whole financial industry? Let’s take a look.

Inside the online Personal Loan paradigm shift
 

If you read the testimonials of customers on modern online loans, such as IDFC personal loan reviews, ‘hassle-free’, ‘simplified’ and ‘quick’ will be the most common words of praise. Well, online personal loans are often in the form of small or micro-credit services that are instantaneous, documentation-free and enable customers to carry out their transactions quickly.

Let’s discuss their impact.

1. Relaxed eligibility
 

Forget rigid eligibility criteria of the old. Availing micro-credit and online personal loans has become very easy these days. If you have a steady income and are above 23 years of age, then you are eligible. This is in sharp contrast to more big-ticket loans like house loans that still require one to meet strict eligibility criteria. Online personal loans have also made checking one’s eligibility quite easy through tools like a personal loan calculator.

2. Documentation-free
 

Banking and cumbersome paperwork used to walk hand-in-hand earlier. But online personal loans these days are mostly paperless and completely digital. If you already have an existing account with the lender, then you don’t even need to go through KYC.

3. Higher affordability

Since lenders don’t require an extensive physical banking network or thousands of customer service representatives to service in-person loans, their overhead expenses have reduced. This reflects in online personal loans which are more affordable and lucrative than ever. One also gets flexible prepayment options, no collateral and personalised loan offers.

4. Lightning quick processing
 

Online Personal Loans can be availed through lightning quick application and disbursement – all of which happens on a banking app or a web portal. No more lengthy bank visits or verifications. This has reduced the loan processing time from 30-40 days to just 24-48 hours!

5. Wider penetration
 

Online personal loans have become as universally accessible as smartphones themselves. Traditionally, it was difficult for banks and lenders to reach out to far-flung and underserved communities due to a lack of physical banking infrastructure. But now everything can happen through a smartphone!

Conclusion
 

There can be no doubt that online personal loans have changed the game for the whole financial industry. It has not only brought customers closer to lenders but is also helping fulfill many people’s needs – be it a small purchase, a big-ticket investment or an emergency loan – all without any hassles.

At IDFC FIRST Bank, we firmly believe in the same – empowering you with industry-leading online personal loans to meet all your diverse financial needs. Our competitive interest rates start at 10.49% with 50% off on processing fee, completely paperless online process and flexible tenure!

Learn more: https://www.idfcfirstbank.com/personal-banking/loans/personal-loan

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