With the whole country moving towards cashless transactions post-demonetisation, a great number of retailers and banks have started embracing paperless transactions and processes for various economic activities including personal loans. You can apply for a personal loan, submit required documents and get it sanctioned in a few clicks, without any hassles or need for human intervention.
Here is everything you need to know about paperless personal loans:
What is paperless personal loan?
As mentioned earlier, paperless personal loans are the loans which you apply for and get approved online. You can avail them from a bank, loan aggregator or financial institution selling personal loans. A loan aggregator is like a middleman who forwards your application and documents and gets it sanctioned on your behalf.
Note; paperless loans are different from pre-approved loans. Here, you have to fill out a form, create and submit soft copies of all your documents by scanning them or clicking pictures and submit, before the bank sanctions the loan.
Carry out in-depth research, compare between loans offered by different banks, read notifications, clauses, terms and conditions carefully, before finalizing on a particular loan.
Benefits of paperless personal loans
- Speed – As the whole process of applying and getting approval is done online, the time taken for submission of physical documents and verification is eradicated. Thus, you get the loan in the shortest possible time.
- Convenience – You don’t have to visit the bank multiple times to get the form, submit the documents etc., or send a courier. All the information that you need to know about loans is readily available at few clicks on the website or the internet, you compare different loans offered, and many sites also have a chat or call option in case you need more details. All this makes paperless loans extremely hassle-free.
- Security – Banks and financial institutions are adopting updated and efficient security measures, your documents are safe from malware. Also, since you make safe copies of everything, you don’t have to worry about losing or misplacing your documents ever.
While paperless personal loans are easier to avail than traditional ones, the repayment of it is still to be done by you. So, unless you don’t have a repayment plan in place, don’t get yourself in to a debt. Repaying loans on time improves your chances of getting loans easily in future too.