New Delhi: People looking for small instant loansâ ?? 10,000 to ?? 7 lakh â can go into the digital lending marketplace, where digital lenders bring banks and borrowers together, facilitate access to loans, and through automation put all required documentation into a digital format.
Through data analysis, digital lenders help loan consumers various secured and unsecured loan products hassle-free.
Customers can take out instant loans for a variety of purposes, such as a medical emergency, travel, home improvement, wedding, or to purchase vehicles and gadgets.
With the help of technology, digital lenders have reduced the time taken by the loan process – from loan application to disbursement – from at least a week to minutes.
âThe digital process brings the paper loan process online. The offline process can take between one and two weeks, it only takes 30 minutes, âsaid Adhil Shetty, CEO of BankBazaar.
In the digital process, physical documents are not required, the customer does not need to provide personal information such as bank account statements, income information, address and proof of identity. In India, this is done simply through Aadhaar based e-kyc which speeds up the verification process, reduces the risk of fraud and the loan amount is paid directly to the customer’s bank account within minutes.
But if a customer is new to credit or has no credit history, additional details such as income and savings may be needed.
âThe biggest advantage of digital lending is that the process is quick, easy, and (almost) paperless. Customers can get loans on better terms because they can compare loan offers from multiple lenders in one place, âsaid Gaurav Chopra, CEO of IndiaLends.
In the digital loan market, customers can find different loan offers from different banks and NBFC and can compare interest rates.
Using Aadhaar and PAN technology and details, digital lenders tap into a database of customers’ credit and other financial history, which helps them analyze a borrower’s creditworthiness.
âDigital lending also allows lenders to better cover risk because they have a lot more customer data than a traditional lending system,â Chopra said.
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