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How Instant Personal Loans Are Changing Lending Space in India?

Updated on: 14 Dec 2021 // 24 min read // Personal Loans
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Personal Loans have emerged as one of the most popular forms of Loan in India. As per the Reserve Bank of India report, in the year 2018, out of all types of loans disbursed by financial institutions, more than 90% were categorized under Personal Loans. Therefore, it is not surprising to see financial institutions aggressively marketing their Personal Loan products. With the rapid integration of technology, the financial services industry is undergoing many changes. Gone are the days when customers had to fill-up lengthy application forms and wait for several days or sometimes weeks to know the fate of their loan application.

The millennials, as well as Gen-X, do not have the patience to wait for such long periods or undertake lengthy application processes for a Personal Loan. After all, when you can get an Insta Personal Loan, where the entire process is completed within a few hours or a couple of days at maximum, then why wait for days to fulfill your cash needs.

By adding the elements of comfort and convenience to the traditional Personal Loan approval process, instant loaning has indeed revolutionized the industry landscape in India.

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Instant Personal Loans: A Quick Review

Instant Personal Loans are approved and disbursed in a quick time. The reduction in the processing time for an Insta Personal Loan has been made possible through technological intervention. You can now complete the entire loan process through a few taps on your phone/laptop, without any need to go anywhere. Instant Personal Loans are offered by Credit Card Companies (for select customers only), banks, NBFCs, and online lending companies.

Changing lending trends in India

By making credit facilities easily accessible to borrowers, there has been a shift in the forefront of the democratization of the financial industry. Here are the ways in which Instant loans are changing the lending landscape in India:

  • Ease of application: The standout feature is the extremely easy application process. You can easily submit your online application through a mobile app or the website of the financial institution.
  • Moreover, there is no need to fill in lengthy application forms or prepare sets of documents. You need to enter some basic details and upload scanned copies of documents to submit your application. For instance, if you wish to avail of a Credy Personal Loan, you just need to log-on to the website and complete the simple application process within a few minutes.
  • Instant approvals and quick disbursals: When you avail an instant Personal Loan, you enjoy the benefits of instant approvals and quick disbursals. As your application is submitted online, the lender assesses your creditworthiness, using AI and other latest technologies. You will receive a Personal Loan offer basis your profile, and if it is acceptable to you, the money would be transferred to your account within a few hours. You can use the money as required, without any need to inform the lender.
  • Automated process: Next, the consumers enjoy the benefit of a completely automated and standardised process. You need not run from pillar to post to submit your loan application, all it takes is just a few simple steps, and your application is submitted. By removing the element of human prejudice, instant loans offer you the best chance to avail required finance facility.

    For instance, when you Apply for a Personal Loan from Shubh Loans, there are just five simple steps involved in the process: access the app, register your profile, generate a free credit report, select the loan amount and tenor, receive the funds in your account, and then start paying the EMIs. It can not get easier than this.

  • Transparency: By introducing automated systems and technologies like artificial intelligence in the lending market space, instant loans are making the system more transparent. Instant loans are offered purely on the basis of the merit of the borrower, and a standard process is followed during the processing of application for a loan. If there is something wrong with your profile, you will get to know what is wrong and can then take corrective actions as and when necessary.
  • Live application tracking: Another standout feature of instant loans is live tracking of your application. Once you submit the application, you can track the status through your smartphone or computer. Moreover, you will receive regular updates from the lender regarding the status of your application. This way, you can understand the progress of your loan application and provide additional documents when required.
  • Competitive interest rates: Gone are the days when interest rates against loan were manipulated by the branch managers. There is no scope of favouritism when it comes to instant loans. The interest rates applicable are extremely competitive and are informed to you before you submit the application. All customers will be charged the interest rate, which is calculated by the system based on the profile, not by any manager.
  • Flexible repayment options: Instant loans offer ease of repayment to the borrowers by allowing flexible repayments. You can choose the repayment tenor as per your preference, which can range between 6 months to 48 months. It allows you to select EMI amounts which you can easily afford. In many cases, there is no prepayment penalty.
  • Dedicated customer support: – Many financial institutions offering instant Personal Loans provide their customers with 24×7 customer support. Any questions or queries that you may have will be answered swiftly on chat bots or through email, thereby offering you faster resolution and peace of mind.

Although technology has paced up the entire process of availing loans and credit cards in India, you must assess your requirements correctly and must never borrow what you require. Availing additional amounts just because it is available might cost you later. So, be a responsible borrower and understand the implications of a loan before applying.

Also Read: Top 8 Instant Personal Loans Online in 2019 – A Quick List

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