Technology has obviously had and continues to have a huge influence on the way we do things. Getting a personal loan today is as easy as ordering a pizza or hailing a cab, thanks to fintech lending companies who have seen the huge potential of lending technology to make the consumer experience so smooth. as possible. Ultimately, making processes smooth and easy is one of the main reasons some technologies have evolved.
If we look at the personal loan market right now (especially the type of lenders operating in this space), technology has played a big role in making the application process easier and more convenient for the consumer, while at the same time dramatically reducing turnaround time. Fintech lenders have come and changed the way people borrow! While previous personal loans took at least several business days to reach the consumer, instant loans offered by fintech lenders now only take 24 hours to reach bank accounts. Let’s take a look at some areas where technology has played a key role in making the lending process super-fast, transparent, and almost completely digital.
Instant approval feature: One of the first steps in the loan process is the initial eligibility check which takes place immediately after you provide your PAN and Aadhaar information. Your PAN and Aadhaar details are used to retrieve your credit report from the bureau, after which a risk assessment algorithm examines important parameters of your report – your repayment behavior over the past few months, your credit score, the total number of active credit. accounts, total arrears, etc. If your profile meets the algorithms, you will receive instant approval, which means you will be steps away from getting your loan.
Online document submissions and digital verification: Until about a year ago, if you wanted to apply for a personal loan, you would have had to submit physical copies of a long list of documents. A bank executive would visit you to collect your documents and verify your official address / residential address. The verification process itself would take 2-3 days and the money around 7-8 days to access your account.
With the provision offered by lenders to submit your supporting documents online, the physical paperwork has been almost completely eliminated. Plus, you no longer need to visit a lender representative – your identity, address, and other information is digitally verified. Bank statements can be submitted online through a secure web platform using your online banking credentials corresponding to the bank account you wish to receive your loan from. The process adopted by fintechs today is often referred to as the paperless and model-less presence, not requiring you to submit physical documents, visit a bank branch, or meet with a lender representative. Technology has played a major role in creating this paperless, presence-less model. The entire loan process from start to finish can be completed online.