“Sorry yaar, paise bilkul nahi hain. Jo kuch bhi tha who maine (Random relative ka naam) ke chacha ko de diye”.
This is what you get when you look for quick funds with friends, family or colleagues – REJECTION. But, this rejection comes with the added baggage of embarrassment, hurt and ‘Dost Dost Na Raha’.
But then why ask for cash with close-ones and create a jolt in a harmony filled relationship? “Yes! Why should I ask with friends? I shall take the noble approach of going to a bank for the loan.” Bravo, Quite a logical decision indeed. But, can you guarantee a bank loan approval despite never having availed any credit in your life? Remember that you need an urgent loan and not a month-long loan approval process.
Millennials and Hassle Free Lending
Banks and credit institutions have by now comprehended the extent and scalability of digital lending. Developing an app is not enough to appease salaried millennials. Umpteen steps in getting personal loan approved are no more acceptable. No one has the time to stand in never ending queues. Banks need to reinvent themselves or might be left far behind by emerging startups and Fintechs.
The emphasis on banks and offline lending services would be to focus on building a seamless and digital application process. Everyone is already dependent on smartphones and nobody has the time to visit the bank to wait in long queues. Faster credit underwriting is one more area which needs improvement on offline lending services. Time and research has to be spent to understand what millennials are looking for. There has to be a well-structured strategy, keeping in mind competencies. Two areas to keep in mind this year are
Flexibility – Architectures and systems for digital lending must be flexible for customized configuration. Real time requirements such as addition of external APIs are to be allowed on the go.
Design – The design should be focused on the end user. Understanding borrower profiles, their demographics, social media presence etc., needs to be taken into consideration.
Eliminating paper and cutting time delays has to be the priority for offline lending services. The friction that is caused due to unending paperwork and approval time has to be addressed. Digital analytics are needed to better understand borrower needs and that too in real time. Alerts, notifications and intimations need to be sent out in real time as and when the loan application is submitted, approved and the amount is disbursed.
Your Credit ‘Scoreboard’ is Ticking
There must be so many of you out there who are salaried and yet have never availed any credit before. This obviously means your credit history is nil. Some of you have no idea how to check your score with our country’s credit bureaus, and hence can’t gauge their financial undertakings well.
The sorrow is apparent. You want to improve your house with a personal loan, but get rejected due to no score; ditto for loans towards marriage or travel. And many millennials have always been dependent on our wonderful parents. So, there obviously was no need to apply for credit. This is where data comes into play.
With no credit history, a salaried individual can only get a personal loan based on his/her current salary, his social profiles, demographics, work profile and other details. Your transaction history then plays an important part in helping you avail fresh credit. Therefore, we can easily ascertain that simply based on data & analytics, we can get a loan. This suddenly changes everything. The ones, who would otherwise get a loan rejection without a credit history, can become eligible now
How Digital Lending changes everything…
Digital lending is a lending solution which enables salaried individuals to apply for a personal loan with quick loan approval and fast disbursement; leveraging technology and data. Through traditional lending, banks rely on dossiers of paperwork; neither do they provide any clarity on approval status and documentation delays. It is a herculean task to get funds in times of an emergency. On a digital lending platform, however, eligible individuals are provided funds based on their creditworthiness.
A digital lending platform combines the technology with credit lending principles. Borrower profiles are evaluated by credit underwriting algorithms to assess his/her creditworthiness based on multiple factors. The borrower then pays EMIs which the digital lending platform keeps track of. Borrowers can apply for a personal loan towards a number of purposes such as health, second hand car, festival spending, travel, marriage, home improvement, etc.
Digital lending is growing rapidly and recent reports indicate that India is the third largest alternate lending sector in the world – after USA and China. Digital lending, although existent in India for close to a decade now, is an online process of lending money to salaried individuals; done mostly via an app or a website.
A digital lending platform, such as Loan Singh, relies exclusively on technology to perform all the processes in a loan lifecycle. Digital lending provides a superb opportunity for underserved & credit starved salaried individuals to apply for online personal loans. You might worry as to how much reliable can a digital lending platform be, with your personal and salary information being fed into the system. Loan Singh exercises precaution when dealing with your sensitive data by adding a secure socket layer (SSL) which establishes an encrypted link between the platform and your browser, ensuring the data that passes through remains private.
And most likely to stay
With more than 800 million mobile phone users spread across India, the scope for digitalization is simply immense. With an SMS you get the intimation of your salary being credited, your bank statement can be easily updated via netbanking, money transfer is now possible via UPI through BHIM. The security aspect is taken care of by Aadhaar, NACH, e-KYC and OTP (sounds familiar? check out Loan Singh’s FAQ).
Financial technology turns into an umbrella for all finance related activities including unsecured credit, digital payments and P2P lending. Digital Lending is what we will be discussing in this week’s Loan Singh special. We will also later in the post see what’s in store for digital lending in 2018.
Despite India’s digital lending sector still in growth phase, one Fintech player has managed to tread farther than others in the segment. The name of this Fintech is Seynse Technologies. Seynse Technologies has also been a proud partner in launch of the Airtel Online Store. Loan Singh is a product of Seynse Technologies Pvt. Ltd.
India has already started with digital based initiatives such as ‘Digital India’ and ‘India Stack’. There are smartphones now available at affordable prices, improved digital infrastructure and digital payments taking over cash transactions. LaaS (Lending-as-a-service) has digitalized the entire loan lifecycle. And digital lending is the umbrella above LaaS. The new wave of lending has hit shore.
Features of Digital Lending
The ‘Digital India’ project swooped in at the right time to provide a lift to digital lending in India. With the combination of borrower data, algorithms and technology, the question arose as to what could be done with this trident to actually solve daily financial problems that was affecting India’s finance sector. Financial services are the largest contributor to the GDP. The idea is to have a simple platform that provides quick yet effective financial services. There are more and more millennials ready to accept a digital platform to solve their financial problems. The need for digital lending arises mainly due to the shortcomings in traditional lending solutions. Some factors that govern its rise are:
Making use of technology certainly puts a digital lending platform in the driver’s seat. For loan processing, there is a system required to check the documents, process the loan and disburse the approved loan amount. All these are done with the help of credit models that make use of borrower data. Digital lending allows for continuous upgrade of tools that are needed to make the loan experience faster and better.
Imagine not needing to travel from bank-to-bank with documents, photocopies and application forms. With digital lending, the documents can be retrieved from the borrower’s netbanking account or uploaded from the computer. The borrower’s credit report is fetched online, and helps a digital lending platform to provide collateral free personal loans. So, without actually seeing the borrower, the loan is approved and disbursed.
There is least human intervention involved in digital lending. There are no executives to physically accept your application form or your physical documents. Therefore, there is no chance of partial tampering of documents or unbiased loan decisions via the route of digital lending. Digital lending also shortens the credit assessment time.
The use of a simple online application form, replaces the pile of exhaustive paperwork that could take-up an hour to fill; along with references and signatures.
With traditional lending solutions taking up to 2-3 days to get the loan from approved to disbursal stage, a digital lending platform will do the same within 36 hours; if all the eligibility criteria are met.
Lending money is an activity that involves handling of sensitive borrower information – including the financials. This makes it paramount to protect the data. There are occurrences reported of identity theft and website hacks that make us skeptical to depend solely on digital lending. But, the hallmark of a good digital lending platform is making use of SSL layers for encryption.
Loan Singh – The Best Digital Lending Platform
Being a digital lending platform, Loan Singh embeds almost all of digital lending features. Some facets of Loan Singh are
- Automated underwriting using proprietary data modeling
- Non-existent time delay in decision process
- Quick disbursement due to automated processes of assessment and lending
Innovation is ensured thanks to better quality of customer service with online chats, etc.
The risks taken by Loan Singh are tremendous compared to banks. Here borrowers don’t have to physically apply for the loan. PAN details and a Bank statement PDF is enough.
Credit Risk (unsure of repayment), Market risk (unpredictability) and Operational risk (cyber-attack, technology outlay, etc.) are 3 risks that Loan Singh tackles while serving the under-served.
The traditional finance sector has always been a slow moving one. Digital lending uses “Speed” as a word for all its operations.
Loan Singh prides itself on its technology, which automates processes and hence traditional lending solutions such as banks will need to take more time to shift from years of standard tedious practices like lengthy paperwork and long list of documents.
Benefits of Loan Singh
Loan Singh presents a number of advantages over other online platforms. Some of these advantages are
- Minimal documentation
- Fixed monthly installments
- No hidden fees
- Easy online loan application process
- No prepayment penalty
- Social authorization – a secondary identifier
- Transparent process
Loan Singh is a digital lending platform that prides in providing an unsecured online loan to salaried individuals. You can apply for instant funds with instant approval. An easy emergency loan can be availed in the form of a personal loan, which is not a bank loan. You receive a low personal loan interest rate. This instant loan, which is basically a quick loan, can be paid via easy EMI and can be availed for a number of loan purposes such as:
- Home improvement loan/Home renovation loan
- House repair loan
- Marriage loan/ Wedding loan
- Medical loan
- Second-hand car loan
- Second-hand bike loan
- Second-hand vehicle loan
- Consumer durable loan
- Vacation loan
- Shopping loan
- iPhone loan
- Debt consolidation loan
- Credit card refinancing loan
- Job relocation loan
- Travel loan
- Festival loan
You can calculate your easy emi using our personal loan emi calculator. We accept bank statement, PAN, and Aadhaar for instant loan pre-approval. A bad credit score or credit report errors can lead to personal loan rejection. Personal loan defaulter consequences can also ruin your credit score. Improve your credit rating by avoiding emi repayment default. The ‘Loan Singh Blog’ is one of the best finance blogs in India.
Loan Singh’s Online Presence
Loan Singh is not an anonymous digital platform. We are present on almost all leading social media platforms. All you need to do is look for us. Some destinations you can find us on are:
- Loan Singh on Facebook
- Loan Singh on Twitter
- Loan Singh on Youtube
- Loan Singh Pinterest
- Loan Singh on Instagram
- Loan Singh Blogarama
- Loan Singh Google Review
- Loan Singh Medium Blog
- Loan Singh Reddit Blog
- Loan Singh Tumblr Blog
- Loan Singh Scoop It Blog
- Loan Singh Storify Blog
- Loan Singh Digg Blog
- Loan Singh Blogger
- Loan Singh Lymelight
- Loan Singh Justdial