Traditional loan applications involve a lot of paperwork, a tiresome verification process and a long waiting time. Getting a loan used to be a tedious task earlier, from many bank visits to submitting all documents physically. Then paperless personal loans rose to rescue you from this exhausting task by completely changing the landscape of personal loans. Now you can access the funds through digital loans from the comfort of your home, with no physical paperwork, and get quick approval and fast disbursal of funds. Online personal loans allow you to be in pace with today’s digital world and have improvised the borrowing experience.
What is a Paperless Loan?
A paperless loan is a personal loan that does not require any paperwork and makes the application process more convenient. But this does not mean that it does not require any paperwork at all, instead, you will need to upload the soft copies of your documents while applying online. You can complete the whole process of a paperless loan online, from applying for the loan to receiving approval without even visiting the bank or submitting the hard copies of documents.
Process of Getting a Paperless Loan:
Applying for a paperless personal loan is a straightforward process.
- Online Application: Fill out the application form on a trusted platform offered by NBFCs, banks or a dedicated loan app.
- Upload documents: Scan the required documents such as identity proof, income statement, and address proof and upload these soft copies with the application form.
- Digital Verification: Once the documents are uploaded, verification is done digitally through advanced algorithms to ensure that your documents and information are accurate.
- Quick Approval: After verification, the loan is approved within a few minutes and the funds get disbursed to your account instantly.
To make the loan process easier many banks and NBFCs have started their online platform for providing paperless personal loans. HDFC Bank, ICICI Bank, and SBI are some of the leading banks that started digital loan services. Also, NBFCs like Bajaj Finserv, TATA Capital, and Mahindra Finance have provided a platform for online applications. Fintech companies like MoneyTap, KreditBee, and PayMe offer digital loans with quick approval and disbursal without any physical paperwork.
Benefits of a Paperless Personal Loan
There are many advantages of personal loans over traditional loans which provide a faster and convenient experience. Here are some of the benefits of a paperless personal loan:
- Quick processing and disbursal: Digital loans are processed quickly unlike traditional loans which take days or sometimes even weeks for approval. In digital loans, approval and disbursal happen in minutes and ensure that you get funds on time during difficulties.
- Minimal paperwork and hassle: Paperless loans completely end the need for physical paperwork. Only scanned copies of minimal documents are required. Simply upload the scanned copies with the application online without any paperwork hassle like the traditional loans.
- Environmentally friendly: Paperless loans reduce waste by reducing paperwork, making them a better option than traditional loans. Traditional loans have a lot of paperwork and lead to deforestation and harm the environment.
- Real-time status updates: You will receive real-time updates on the status of your loan application, which will keep you updated and offer clarity.
- Flexible loan terms: Paperless personal loans offer flexibility in loan terms. This benefit allows access to tailor the terms according to your financial situation.
Traditional loans require you to visit the bank in person and complete extensive paperwork. In contrast, a digital loan can be applied for from the comfort of a home, provides instant approval, and allows for quick disbursal. These advantages offer convenience and an efficient experience.
Who is Eligible for a Paperless Personal Loan?
Lenders set criteria to check the borrower’s capability to repay the loan. Understanding the eligibility of paperless personal loans helps ensure smooth approval when applying.
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Age Requirements:
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- Salaried Employees: 20 to 58 years
- Self-employed: 28 to 65 years
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Salary and Income:
- Salaried Employees: A minimum salary of ₹30,000 monthly
- Self-employed professionals: A minimum ₹15 lakhs turnover
- Self-employed non-professionals: A minimum ₹40 lakhs turnover
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Employment and business status:
- Salaried Employees: At least 2 years of work experience and are living in their current residence for 2 years
- Business owners: Should be in their current business for at least 5 years
- Minimum credit score:
A minimum credit score of 685 or above is required to be eligible for the paperless personal loan. A good credit score increases the chance of approval and you can get a loan on better and more flexible terms.
Online eligibility check tools can be used to verify their eligibility instantly. Checking your eligibility before applying ensures a seamless digital loan approval process. Additionally, KYC-compliant digital documents like Aadhaar, PAN, and proof of income are required for verification.
Tips to Get a Paperless Personal Loan Easily
Applying for a paperless personal loan is easy, but you can improve the chances of approval by following the right steps. Here are some tips for paperless loan approval to ensure a smooth process:
- Maintain a good credit score: A credit score above 685 increases the chance of approval and helps to get the loan at better interest rates. Keep a regular update on your credit report and clear all the outstanding dues on time.
- Keep necessary documents ready: Keep your Aadhar card, PAN card, salary slips, and proof of income prepared in digital form to ensure a seamless verification and approval process.
- Compare interest rates and terms: Different lenders offer paperless loans at varied interest rates. You can compare these interest rates and terms on various online platforms. Choose the lender and terms that best align with your financial goals.
- Use a loan eligibility calculator: Various lenders and online platforms provide the online eligibility calculator tool which helps you to check your eligibility for a paperless loan before applying, saving you from rejection.
- Apply only to trusted lenders: To prevent fraud, apply for loans from only well-known banks, NBFCs, and fintech platforms. Be aware of lenders that ask for upfront payments and guarantee approval.
Common Mistakes to Avoid:
- Multiple Applications: Applying for multiple lenders will lead to hard enquiry of your credit account which will lower your credit score and reduce the chance of approval.
- Ignoring Loan Terms: Always read the loan terms carefully including interest rates, processing fees, repayment terms, and prepayment charges before finalising it.
- Providing Incorrect Information: You should always provide accurate and up-to-date information while applying for a loan. Inaccurate details lead to the rejection of the application during the verification process.
By following these tips and avoiding any mistakes, you will be able to get a paperless personal loan smoothly without any rejections or delays.
Conclusion
Digital loans or paperless loans have transformed the borrowing experience by providing quick approval and minimal documentation without even visiting the bank. These loans offer a fast, hassle-free and eco-friendly way to borrow funds in times of financial emergency. These loans provide instant access to funds on flexible terms whenever you need financial support.
Applying for a loan has never been this easy as more and more banks, NBFCs and fintech platforms are providing digital loans.
Ready to go paperless? Apply for a personal loan online today!
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