Back in the day, applying for a loan was considered to be quite a task. Applicants had to visit a bank’s branch, fill out the required forms, submit numerous documents and had to wait in long lines. Getting all this done would take up a lot of time.
However, these are problems that have since ceased to exist, thanks to digital advancements making a significant impact on the entire financial industry. Today, when it comes to applying for a personal loan, one can complete all the formalities without even stepping out of their house!
Let’s take a look at 4 ways in which digital tools have helped improve the workings of the financial industry:
1. Loan applications are now processed quickly
There was a time when loan applications could take a long time to get processed. This could be problematic for those who were in urgent need of funds. However, this is something that applicants do not have to worry about today. Now, people can apply for a personal loan and they could get the lender’s approval in just 48 hours. Once the loan application is approved, the loan amount can be disbursed in just 3 seconds!
2. Applicants enjoy easy eligibility criteria for personal loans
Lenders have made it easy for people that are looking to apply for a personal loan. Most financial institutions set basic personal loan eligibility criteria. Usually, lenders require the applicant to be aged between 21 to 60 years, having completed graduation, with 1 year of work experience, and to be earning a minimum monthly income of Rs 25,000. Do note that these requirements could differ based on the lender. So, make sure to inquire with the specific lender about their requirements before applying for a personal loan.
3. People can easily make digital payments through mobile banking
When clearing bills, people do not need to head to ATMs to withdraw cash and make payments anymore. They can simply complete the payment with the help of mobile banking using their smartphones. This proves to be very convenient as it saves a lot of time and effort, not to mention making financial transactions more efficient for both the sender as well as the receiver.
4. Digital banking leads to higher affordability
Thanks to digital banking, lenders do not necessarily have to operate an extensive physical banking network. This ends up saving a significant amount of overhead expenses. With these savings, lenders are now able to offer much better deals to their customers, such as a low personal loan interest rate, or even a higher loan amount! Customers can also make use of a digital personal loan EMI calculator to understand the loan’s monthly instalments beforehand. Using this personal loan calculator helps in deciding whether the loan would be suitable for their budget.
The above-mentioned benefits make it clear as to how digital technology has been vital in making the financial industry improve on its efficiency. Customers can now fulfil their financial needs like applying for a personal loan with much ease and convenience with just a few simple clicks!