How Has Technology Changed The Personal Loan Approval Process

If we take the current loan market into consideration, the process of getting a personal loan is more convenient today than it has ever been. Faster application-to-sanction processes, alternate credit eligibility criteria and flexible repayment options have allowed borrowers to be able to finance their goals with much less hassle. Technology has played a significant role in this upheaval.

The introduction of online personal loan by financial institutions has brought about easier credit access on top of the flexibility that personal loans offer. Instant personal loans take it a step further by letting one obtain a loan faster than placing a food order online. Interested borrowers are able to find out all information about their loan, including potential interest rates and EMI, on the lender’s website. One can register their interest, upload all necessary documents online and receive their loan amount shortly after.

Here are Some Ways Technology has Changed The Way We Apply for Personal Loans

1. Finding a suitable lender is easy

One of the things that makes the internet so powerful is the vast array of information it brings to your fingertips. Researching about and finding a suitable loan vendor is very convenient. You can also receive comprehensive quotes about your loans from various lenders in a matter of minutes, which you can then compare and choose from. Most lending institutions also include an EMI calculator, which helps you calculate personal loan EMI,  borrowers gauge how much they can expect to pay over time.  With an instant personal loan online, applying for a loan is just as fast.

2. Alternate eligibility criteria for credit

A few years back, personal loan applications not only took a long time to get processed, but many people who were making a stable amount of money were often not found eligible within the rulebooks of the best loan providers. The reason? Eligibility criteria were stringent, and made it possible to obtain a personal loan only to those who had had a long track record of stable financial histories on paper - which means that newly employed people were often left out of the equation. Today, however, the game is changing fast. Some companies are even considering your bank statements, telephone and electricity bill payment records and your shopping histories as a measure of safety and trustworthiness in the context of lending money to people, which is bringing inclusivity to the personal lending scene.

3. Instant verification of documents

With traditional bank loans, document verification was a fairly lengthy process. It could take two weeks to have your documents verified and the loan amount transferred into your account. Today, however, the document verification is no longer a one to two week-long wait. In fact, some lenders today not only move swiftly from loan application to disbursal within minutes, but also make pre-approved offers that guarantee funds transfer into your account right after you submit the required documents to your loan provider.

4. Fast loan approval

Traditionally, you would be required to visit a lender’s branch office, experience long waiting hours and multiple rounds of evaluation of your application before being aware of the EMI you are required to pay. Now the entire process to apply for a Personal loan, i.e., checking eligibility criteria, documents evaluation, and loan sanction can be carried out instantly. Without leaving your seat you can get approval for your online personal loan. 

5. Flexible interactions with your loan provider

Today, you can not only hyper-customize your loan to suit your needs, but your interactions with your lender are also becoming super-smooth. Loan providers are offering personal loans that allow you to customise your loan amount, tenure, EMIs and repayment options - all at the comfort of your fingertips. In fact, even the process of interacting with the lenders is taking a massive turn - you can now resolve your queries 24x7 through your loan provider’s intelligent chatbots, and tailor your options on the go.

Technology is clearly making a big difference to our lives - not only in big ways, but small ways too. For example, your document verification now takes place through image recognition and 3rd party verification, selfie pics and self-recorded videos. Applying for an online personal loan was never this 

On Finserv MARKETS, you can choose from a variety of personal loan offerings. On Finserv MARKETS, the process of getting instant personal loans online is hassle-free and paper-free. The approval is instant, and the loan amount is disbursed in no time. Finserv MARKETS is a secure platform with a user-friendly interface and is trusted by over a million people. Visit the Finserv MARKETS website today to get started on your online personal loan application process.