Digital Lending Documentation – Breaking The Offline Shackles

personal-loan-documentation

Introduction

Taking care of documents is a subconscious habit that goes back centuries. Birth certificate, ration card, house/rent document, curriculum vitae, telephone bill (especially during the days of Beetel), electricity bill and election card. We bet every head of the household possessed a folder or punch file with all the originals. As kids growing up, we were counseled by the elders to take care of all our documents. “Kabhi zindagi zaroorat padegi.  Documents sambhaal ke rakho”.

Go purchase a special folder; buy a box of paper clips, arrange for a stapler, get rubber bands…basically turn your study table into mini-stationery. In today’s millennial infested world, everything needs to be instant, convenient and happening ASAP. Document requirement at a traditional banking process tends to be tedious and lengthy. In today’s article we will look at the comparison of documentation involved with banks and that of a digital lending platform like Loan Singh. Loan Singh’s super easy application process coupled with its fully online platform gives salaried individuals a great option to avail personal loans to spend on travel, medical, wedding or home improvement.

 

Offline Documentation Process

Traditional lending methods still continue to make use of photocopies, paperwork, KYC, attestations etc. This is not only cumbersome for the borrower applicant but also is a matter of storage with banks. An ideal document checklist for a traditional lending player would be

Identity proof

You need to establish your identity by providing any one of the following documents to the bank or financial institution

  • PAN (Permanent Account Number) Card
  • Election Voter’s Identity Card
  • Driver’s License
  • Passport
  • Ration Card
  • Telephone Bill (either landline or postpaid mobile phone bill)
  • Electricity Bill (in your name)
  • Life Insurance Premium Receipt
  • Employer Identity Card (Government Issued)
  • Lease Deed/Title Deed (both pertaining to ownership of land)
  • Municipal Tax Receipt (for house)
  • Allotment Letter (if you work for state or Central Government)

Age proof

To establish the correct age to the bank, you need to provide

  • Birth Certificate issued by a Civic Authority
  • Passport
  • Government Employee Identity Card
  • PAN (Permanent Account Number) Card
  • Election Voter’s Identity Card
  • Secondary School Leaving Certificate (Class 10th)
  • LIC Policy or Premium Receipt that indicates your age
  • Pension Payment Order or Family Pension Order
  • Defense Identity Card (authorized to dependents of soldiers in active duty or retired)

Residence proof

Any of the following document, acts as a residence proof

  • Aadhaar Card
  • Ration Card
  • Bills of Electricity
  • Water bill
  • Gas Connection Book
  • Telephone Bill (either landline or postpaid mobile phone bill)

Income proof

A key aspect of getting a personal loan approved is the income you earn. For salaried individuals, the documents needed are

  • Latest salary slips from employer
  • Last 3 months bank statement from the salary account
  • Appointment letter or proof of continuity of employment
  • Form 16 for the last 2 years which indicate details about income and deductions
  • Acknowledgement receipt of Income Tax returns of the last 2 years
  • For individuals who are self-employed, the list consists of
  • Proof of Employment such as Trade License
  • Sales Tax Certificate
  • Financial Audit Report of the self-run enterprise or business, for the last 2 years, which indicates annual profits and losses
  • Bank statement reflecting transactions of the last 6 months

 

Digital Lending Documentation

An online personal loan, with a digital lending platform, would need just 2 documents. The idea is to keep it simple and yet a lightning quick process.

  • PAN Card
  • Bank statement (Latest 6 months PDF)

See! Just 2 documents are required by Loan Singh as compared to the exhaustive list of documents needed at banks. For salaried individuals, it is pertinent to take funds to purchase gifts or second-hand vehicle, and that too, within a short span of time. It is only possible digitally, as traditional banking solutions will take up to weeks to disburse the funds. For a personal loan, the borrower’s creditworthiness determines if he/she can pay the loan EMIs regularly, and that too, without straining his/her daily living. Your credit report acts like a gauge for Loan Singh. It shows how prompt you have been in your previous credit responsibilities and how trustworthy you are. Loan Singh is perfect because of

No collateral – Having no collateral gives personal loan an advantage over a secured loan. Even if you do not own any fixed assets, you can at least get funds from Loan Singh.

Multiple purposes – A personal loan can be availed for a number of purposes – such as purchase of household appliances, electronic gadgets, purchase gold, holiday travel, home improvement, relocation of job, medical expenses, home renovation, marriage, etc.

 

Loan Singh Eligibility

Before you begin the quick and easy application process at Loan Singh, check the following eligibility criteria required for a personal loan.

Salaried

To avail a personal loan from Loan Singh, you need to be a salaried individual – with a minimum monthly salary of Rs.15000.

Credit score

Loan Singh looks at your credit score, to evaluate your creditworthiness, before approving the loan. A creditworthy borrower is someone who has been prompt in his/her previous loan EMI payments, maintains a good credit utilization ratio, has been paying his/her credit card bill on time, and has never overspent over the credit card limit. If you have never availed of a loan before, you will have no credit history. In that case, you need to be salaried for at least 6 months to be eligible for a loan at Loan Singh. The lower your credit score, the lower your chances of being eligible for a personal loan.

Age

You need to be at least 21 years of age, to be considered eligible for availing a personal loan with Loan Singh. As mentioned above, you must be of Indian nationality and salaried, as well.

Financial stability

You need to have a stable monthly income. A good budget is advised to avoid times when you might find it hard to pay-off the loan EMIs.

 

Loan Singh Application Process

Not only is a personal loan the best alternative for quick funds, Loan Singh’s quick and easy application process also helps you get the funds you need for any financial emergency. The process to get an easy and quick loan with Loan Singh is mentioned below:

If you find yourself fitting Loan Singh’s criteria, log on to www.loansingh.com and apply for an online personal loan. You will need to keep your Aadhaar, PAN and bank details handy. Here is how the process goes.

Get started page – Select ‘PERSONAL LOAN’ from the dropdown and enter the loan amount with the desired repayment tenure.

Registration page – Add your contact number, personal email ID, and corporate email ID

Social authorization – Connect to your Facebook, Google+ and LinkedIn profiles, to avail a lower interest rate.

Profile page – Fill in your name, gender, Father’s name, number of dependents, and PAN details. We use your PAN Card Number to check your Credit Score.

Address page – Choose your type of residence, and mention your street address, city, state and pin code.

Job profile page – Mention your current designation, total work experience, company name, highest qualification, last institution attended, and monthly salary.

Financials page – Upload your latest 6 months bank statement (in PDF format) either from your computer, GMail account or net-banking account directly. Our net-banking partner is ISO 27001 (2013 standard) certified & provides services to banks, as well.

Auto debit page – Provide permissions to your bank name, account number, and IFSC code so that Loan Singh can auto debit the EMI amount from your account every month. This way you don’t need to set reminders or miss out on any loan EMI payments.

 

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