Technology has evidently had, and continues to have a massive influence in how we do things. Getting a personal loan today is as easy as ordering a pizza or hailing a cab, courtesy of Fintech lending companies who’ve seen the towering potential that technology has in the lending space to make the experience for consumers as smooth as possible. At the end of it, making processes smooth and easy is one of the prime reasons why certain technologies have evolved.
If we observe the personal loan market in the current day (especially the type of lenders operating in this space), technology has played a big part in making the application process easier and more convenient for the consumer, while also greatly reducing the turnaround time. Fintech lenders have come in and changed the way people borrow! When earlier personal loans took at least several business days to reach the consumer, instant loans offered by Fintech lenders now take just 24 hours to reach bank accounts. Let’s look at some areas where technology has played a key role in rendering the loan process super-fast, seamless, and almost entirely digital.
The instant approval feature: One of the first stages of the loan process is the initial eligibility check that happens immediately after you provide your PAN and Aadhaar information. Your PAN and Aadhaar details are used to fetch your credit report from the bureau, after which point a risk-assessment algorithm examines important parameters in your report – your repayment behaviour in the last few months, your credit score, the total number of active credit accounts, total outstanding dues, etc. If your profile meets the algorithms, you’ll receive instant approval, meaning that you’d be just a few steps away from receiving your loan.
Online document submissions and digital verification: Until about a year ago, if you wanted to apply for a personal loan, you’d have had to submit physical copies of a long list of documents. An executive from the bank 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 about 7-8 days to reach your account.
Thanks to the provision offered by lenders to submit your supporting documents online, physical paperwork has almost entirely been eliminated. More so, you don’t have to visit a representative from the lender anymore – your identity, address and other information are verified digitally. Bank statements can be submitted online through a secure web platform by using your internet banking credentials relevant to the bank account you want to receive your loan in. The process adopted by Fintechs in the current day is often referred to as the paperless and presence-less model, not requiring you to submit physical paperwork or visit a bank branch or meet a representative from the lender. Technology has played a major role in creating this paperless and presence-less model. The entire loan process from start to end can be completed online.
