Around the last decade, the financial technology business has grown at a breakneck speed
worldwide. One can observe this impact in India, where large corporations devote time to producing products and services tailored to this market. * According to a recent data survey published by The Times of India, the outstanding portfolio of personal loans increased by about 48 per cent in a fiscal year, rising from INR 26700 in March 2019 to INR 39700 in March 2020. As per a recent statement, consumer and online personal loans hold 87 per cent of NBFC-Fintech active loans. As a result, personal loans have helped boost the outstanding portfolio value year over year. Fintech Lending has transformed how credit is delivered in India with real-time solutions and innovative products.

Despite the epidemic, the industry has grown by 38% year over year as of September 2020. The
Fintech lending business will play a critical role in influencing the credit industry’s future in the new
normal. 

What Are Online Personal Loans

These small-ticket loans may be easily transferred to your bank account and come with a high-
interest rate. However, it usually takes the shape of a credit card with a shorter repayment term.
This is something that many microfinance companies do to help people with various requirements. These businesses either feature a mobile application or a web portal to apply for a loan or try to get funds.

The Fundamental Change

People have been urged to apply for shorter cash credits as much as possible since the introduction of online personal loans. Applying for a smaller loan from any reputable bank was time-consuming before the internet, smartphones, and technology. However, the process has altered since then, making it easier to apply for loans online. Here are some of the benefits of applying for personal loans online:

 Eligibility Requirements are Flexible

Most online personal loan providers have relatively lax eligibility requirements. This allows a large
group of people to take out smaller loans. However, to apply for this loan form, you must have an
excellent credit score.

 Digital Verification

Fintech firms employ digital technologies, like personal loan eligibility calculators, to serve their
consumers with the best possible experience and help. Digital technology is used throughout the
entire personal loan application procedure. All documents are digitally validated after a borrower
applies for a loan online. The loan acceptance or denial is likewise made online in seconds. The
pandemic has only pushed the lending industry’s adoption of digital technology. Customers are
unlikely to return to traditional means of credit transactions after the pandemic since fintech apps
benefit borrowers that brick-and-mortar banks cannot. Artificial intelligence, machine learning, and
big data will only help fintech startups, and digital lending apps gain traction in unexplored regions.

 Financial Collateral is not Required

If you’re a student in need of a small loan or a working professional who wants to pay for utilities
before your next paycheck, these loans are a good option because the credit period is shorter. You
also won’t have to put up any assets as security to secure the loan.

 Faster Documents Processing

The documentation and loan application are completed in minutes, and if your credit score is good, you might get a loan within 24 hours of applying. The procedure meets the eligibility requirements and finishes with the loan amount available for disbursement.

 Quick Disbursal of Loan Amount
You must provide your banking information, including the IFSC, account number, and so on, and the total amount will be credited. In many circumstances, you can directly utilise the portal to make online payments or purchase items through credit.

 Zero Hidden Charges

If you want to apply for a personal loan online, read and understand the terms and conditions,
payback time, interest rate, and minimum monthly repayment amount. Because all of these features are prominently shown on the website and mobile application, you will have an easier time evaluating the portals before applying for a loan.

 Transparency

Traditional lenders cannot provide the same level of openness to their consumers as these lenders
can. When modern customers borrow money, they also want to keep track of their loan repayments and figure out the best ways to manage their loans more effectively and efficiently. Modern businesses, such as Fullerton India, are aware of their customers’ needs. New age lenders, such as NBFCs and Fintech firms, can provide borrowers unprecedented transparency through seamless technology integration with other applications and services. 

The Bottom Line

We’ve been spoiled with options when it comes to online personal loans. So if you need money right away, check out some online personal loan portals and read the documents thoroughly before applying.