Paperless Personal Loan: Everything You Need To Know

A paperless loan is a digital personal loan. It is a type of digital transaction in which the lender gives the personal loan to the borrower after checking certain documents and eligibility criteria. Everything from deciding the loan amount to EMIs is carried out online, and the approval process of this online paperless loan does not involve communicating with a middleman. The platforms are designed in a way to assess and authorize the borrower’s financial, personal, and social information in a paperless manner. Further, this type of instant loan approval does not involve any tedious paperwork, which is also why a paperless loan is often dispatched early.

Apart from saving paper, this method of acquiring a loan is less time consuming, more feasible, reduces human errors, and streamlines the whole process. These are the main reasons why paperless loans are becoming popular.

Read more to know how you can avail a paperless personal loan.

How to Avail Paperless Personal Loan in India?

The first thing to do before applying is to visit your particular financial institution, bank, or lender’s website and check the eligibility criteria. If you pass all the mentioned criteria details such as the age limit, salary limit, etc., then follow these steps.

  1. Visit your digital paperless lender’s website and enter the details about the personal loan amount you are willing to acquire.
  2. Now, go to registration and input your details such as gender, age, employment status, and company.
  3. Then review the available options and check details along with EMI, interest rate, and other things.
  4. If you are confused amongst two or three loans available, then compare the available personal loan options.
  5. After comparing and selecting the best loan option, provide your information such as personal data, address proof, salary proof, etc.
  6. Your loan application will proceed and you’ll receive a response in a few days.

However, if you are looking for a personal loan instant approval, then you need to submit the correct documents and maintain a good credit history. Having a bad credit score, not providing correct or sufficient documents, and too many previous debts are some of the reasons that can lead to rejection of your application.

Who Is Eligible For Paperless Loan Application?

The eligibility criteria for a paperless loan is different for every lender. For instance, some lenders may require a minimum salary of INR 15,000 only and for others, the minimum requirement may be INR 20,000. But, in general, there are a few parameters which will play a big role in defining your eligibility of instant personal loan. These factors are age, income, employment status (salaried or self-employed), credit history and CIBIL score, and relationship with the lender.

How are Paperless Loans Different from Pre-Approved Loans?

We have been hearing about pre-approved loans for a while now. In these types of loans, you apply and instantly in 10 seconds, your profile is evaluated to approve your loan. However, this is mostly offered to the existing customers of the financial institution or bank. And the criteria for approving involves evaluating and analyzing financial credentials, personal profile, and credit rating of the individual. For this, obviously, CIBIL score and your relationship with the bank plays a major role.

However, on the other hand, paperless personal loans are not pre-approved. You have to first submit relevant documents online and fill in the required details for application review. Though the process online is fast and your application will be approved or reviewed rapidly, it is still not pre-approved.

Benefits of Paperless Personal Loan

1. No Paperwork

There is a lot of paperwork that needs to be done when you apply for a personal loan offline. You additionally need to submit copies of a lot of documents, which makes handling everything a hassle. With online paperless person loanprocess, the need of paperwork is removed. Also, you won’t have to visit the bank again and again according to their timings to get approval. You can simply apply from the comfort of your home and upload the soft copy of the required documents.

2. Quick Process

Since the online process is mostly automated, everything is highly streamlined. This makes both the process of applying and loan approval quick and easy. Let’s say, you couldn’t go to the bank on time because of some work. In this scenario, you’ll have to wait another day to start the loan approval process. However, when you are applying for a paperless loan online, you can fill the application anytime. This is convenient as well as saves time.

3. Secure Platform

Since these platforms carry crucial transactions, the security maintained is high. Hence, when you submit your documents online, it is made sure that these are safe. In fact, there are no chances of these documents getting lost which can happen with an offline personal loan application.

4. Transparent Working

Most of these online platforms that offer instant loan in India have a policy of maintaining transparency. You will know about the details without any ambiguity. These details may include application fees, EMIs generated, the exact loan amount, documents required, and even late payment fees. You can get a clear picture of the requirements of your personal loan by reading it yourself.

Consider This before Applying

Repayment Plan:

Although instant personal loan online has all the benefits and these are better than offline loans, you still need to repay this loan. Before applying, you need to ensure that you can repay the loan. Carefully read the terms and conditions, check the EMI amount, and the interest rates. Consider all these factors before acquiring a personal loan because you will have to repay this whole amount to the bank ultimately. If you have even a minute doubt that you won’t be able to repay such high interest back, then rethink your decision.

Compare Different Loan Options:

Other than assessing your repaying capabilities, compare various loan options. If you are availing the option of a paperless personal loan, you have a chance to easily compare different offerings from various financial institutions online itself. This may help you acquire a loan with better terms and a slightly lower interest rate.

Final Thought: Check Every Detail before Applying

A paperless personal loan is still a loan and you can’t afford to get your application rejected as it will negatively reflect in your credit score. Hence, check all the details, thoroughly review the terms and conditions, and carefully upload the relevant documents to avoid rejection. Additionally, assess your reason behind applying for the loan, your repayment capabilities, and don’t forget to compare different options. Once you have done all this, you can proceed with your application.