Personal Finance

How Online Personal Loans Are Changing the Whole Financial Industry?

Over the last few years, online personal loans have become very popular in India and are taking over the financial industry. There is an evident shift in the consumer mindset and tailored government initiatives have made the entire process consumer and business-friendly.

As per the RBI, online personal loan lending in India increased from INR 11,671 crore to INR 1,41,821 crore. So, if you too are wondering how this rise is disrupting the financial industry, let’s find out.

Online Personal Loans

The paradigm shift in the finance industry

If you have read personal loan testimonials, especially on IndusInd Bank’s site, you will come across words like, ‘hassle-free’, ‘quick’, ;0% processing fee, etc.

So, online personal loans come in the form of micro-credit services designed to fulfill a myriad of small and big purchase types. These loans are instantaneous, paperless, and provide quick funds to consumers enabling them with enhanced purchase power. Let’s see the impact.

Ways in which online personal loan is transforming the finance industry.

Easy Application

It is easy for anyone to apply for a personal loan as it is a quick, 3-step process. All you need to do is provide your PAN card and Aadhaar card and your mobile number for basic verification and it’s all done. This financial service has eliminated the major bottleneck of gathering and filling out papers and visiting the bank for personal assistance.

Tailored financial product

Consumers can get customized personal loans. You can find various loan products to meet unique financial needs. One of the most common needs for which personal loans are sought is – wedding loans, medical emergency loans, education loans, travel loans, etc.

With online offers, you have the flexibility to choose your repayment tenure and EMI that suit your pocket and budget. For instance, let’s say a bank offers you a personal loan for 5 years, and your EMIs will be lower, but with a shorter tenure, and higher EMI, you can pay it back sooner.

So, to make the decision easier for yourself, you can use a personal loan EMI calculator to determine the best repayment tenure and EMI option.

Instant approval

Personal loans are the best decision when you need funds in an emergency. It doesn’t make sense to wait for days waiting for approval when you need funds, let’s say, the next day. With banks offering personal loans online, the time taken to approve them has gone down drastically.

Contactless feature

With the advent of digital technology, you don’t even need to visit a bank to speak with someone. You can access in-depth information online, upload the minimal required documentation and submit your application to get the best interest rates. Most of the banks in India provide online personal loans.

During the peak of the pandemic, when many of us needed urgent funds and we couldn’t leave our homes, applying for a personal loan online was a respite. The entire application process is 100% digital, the verification process takes minutes, and the funds get credited to your account in 24 hours.

If you are new to the world of personal loansand would like to know more about them, then this article will help you a lot. Visit a bank’s website and check out the attractive personal loan options at the best rates.

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About the author

Pallavi Kumari