Paperless or digital transactions are the future of the modern economy. Such transactions come with a host of benefits over other documentation-centric alternatives.
Most financial institutions offer a paperless personal loan, a completely online exchange between a borrower and lender. It allows you to access the necessary funds with just a few clicks without the hassle of extensive documentation process which typically involves excessive paperwork.
A paperless loan is a transaction between two parties via a digital lending platform. The application and approval process does not require any physical intermediary. All communication between the lender and borrower happens online, making it a completely paperless process.
There are various advantages to a paperless personal loan. The transactions guarantee security, thanks to the implementation of the latest technologies. It also does not come with any end-user restriction. You can spend the money to meet financial obligations including financing higher studies, paying off existing debts, and even for a medical emergency.
Let’s take a look at 3 reasons why you should avail such financing.
1. Quick processing time –
The application and approval process of such personal loans is entirely automated, which makes it convenient and efficient at the same time. Usually, a lender approves a loan application within only 5 minutes. After the documents are submitted and approved the lender usually disburses the loan amount within 24 hours. The process is a lot faster and streamlined.
Faster loan processing and disbursal can prove very helpful during an emergency. You don’t have to physically go to a financial institution to apply for the loan either. The application process can be done at any convenient time, and you can upload soft copies of the essential documents after it is approved.
2. Secure platform –
Safety is a crucial factor for a paperless personal loan. The lending platforms are SSL (Secured Socket Layer) certified, protected against any kind of malicious activities. Any chance of fraudulent activity is also reduced as the critical documents are not stored in any physical location.
3. Transparent process –
Financial institutions which offer paperless loans are able to maintain complete transparency about their terms as part of their consumer policy. You will know about details such application fees, loan amount, rate of interest, additional fees and charges, etc. at the time of application. Some lenders even offer various online tools like a personal loan EMI calculator, eligibility calculator, etc. that will tell you details like personal loan eligibility, EMI and loan tenor to make the repayment as convenient for you as possible.
The principal loan amount, tenor, and EMI are all set during the application process. The digital lending platform evaluates essential criteria like CIBIL score, monthly income, and document sanction by itself and calculates your creditworthiness. It reduces human interaction to make the entire process more efficient and less error-prone.
The interest rates on personal loans are the same whether it is paperless or conventional. You won’t have to worry about any extra charges for the convenience you enjoy. Financial institutions also provide various deals and promotional offers on these types of loans.
With such benefits, the number of borrowers applying for paperless personal finances is certain to increase. Quick processing time, transparency, security of the platform, low interest rates on personal loans along with the convenience of availing a credit with a few clicks sitting at your home or office all help in increasing its appeal to the general populace.
By Lucia Adams
who is a professional writer and blogger.