Technological advancement has been rapid in recent years, and like every other industry, the finance sector has also embraced it. In recent years, online transactions and other services are becoming popular owing to the convenience they offer.
So, if you are planning to get a Personal Loan, you can now opt for the online personal loan application. It is making a stark difference in the overall borrowing experience by inducing more flexibility and accessibility.
How are the technologies making PL applications faster?
Here is how the introduction of technology is helping to get a loan easier –
· Finding and comparing lenders become faster
Applying for a personal loan has become hassle-free with this technological advancement. At the same time, using the internet, you can know the amount and interest rates from several lenders quickly. So, it becomes easy to compare their offers.
Also, you can know the eligibility criteria and choose the best loan package for you. With the help of data science, you can get more customisable loan offers meeting your requirements. This technology helps to check your eligibility by analyzing your data through structured data exchanges. Thus you will get a tailored loan offer.
· Online PL application process
Now, with the help of the online application process, you can save time from visiting the bank. Previously, you had to travel to your bank physically during working hours and negotiate with your lender for the amount and the interest rate. But now you can initiate the whole process at your convenience. Then you need to upload your KYC and other documents for verification. So, the process becomes paperless due to the boom of digitalisation.
· Free online calculators
You can use an online personal Loan EMI calculator to calculate your monthly EMIs easily. Moreover, you can use it to find out how your loan repayment works during this period and other vital details of the credit. It helps to choose the best EMI as per your capability.
Again, there are online eligibility calculators to show the maximum loan amount for the borrowers based on their eligibility criteria.
· Quick loan approval
Now you don’t have to wait for the traditional process of document verification. Technologies have wiped out this old process. Most of the borrowers link their Aadhar, PAN, mobile number, and bank accounts as a part of KYC. So, lenders easily get your details through e-KYC to streamline the loan process.
The API (Application Programming Interface) and RPA (Robotic Process Automation) make the documentation and verification process easy for the customers and the lenders. As a result, it becomes easy to verify the lenders’ data and approve their loans quickly.
Additionally, the cloud technology provides centralised data access to accelerate the loan documentation process and quick disbursal. Thus the process becomes error-free and transparent.
· Flexible loan terms
The digital loan platforms let you choose flexible loan tenure and repayment options. The financial institutions provide facilities like auto-debit via ECS (Electronic Clearing System), debit cards, UPIs, etc., as online repayment options.
Moreover, online platforms help you to manage your payments smoothly. You can check your product name, loan amount for repayment, outstanding loan amount, etc., from the dashboard.
· Interactive customer support
With the integration of AI (artificial intelligence) and ML (machine learning), the redundant tasks of customer relationships have become easy. Now AI-based chat-bots can easily handle customers’ inquiries. Lenders need not spend too much time and money on repetitive administrative tasks like customer service. Technologies confirm the 24*7 customer service for the borrowers.
· Proactive risk management
Cloud technology offers scalability, integrity, and security to manage the data of borrowers. Thus it provides a safe and secure platform to borrowers and lenders also.
The API and RPA help the lenders to securely access the borrowers’ data and communicate with the more eligible customers. In this way, the lenders get a safeguard from any fraudulent activity.
Additionally, there are technologies like AI, Blockchain, and Cryptography for risk management, fraud detection, and making transparency for legal tenders.
The application and approval process for a personal loan has changed due to emerging technology. Now the whole procedure takes place with the digital infrastructure making the process more accurate and quick.
About the Author
Amaira Sharma is finance expert and former business growth strategist who has more than 8+ years experience in the industry, now she helps others to get better financial stability and standards. She loves to write useful tips on personal finance and businesses.