Being one of the commonly availed loans, it is natural that people tend to have misconceptions about the eligibility criteria, documentation requirement, and other features. Getting an online personal loan is easy thanks to digital lending platforms such as Loan Singh. But, before we dig deeper into the myths that surround an online personal loan, let’s understand some more about it.
Digital lending, simply involves lending of money through online platforms – website or smartphone apps. It is a method of direct financing where individuals can easily borrow money. Digital lending relies on technology to simplify loan related tasks such as personal loan application, credit evaluation, and borrower authentication. Digital lending provides an opportunity to avail financial assistance for underserved and credit-starved salaried individuals. Many of us, despite receiving our salaries via NEFT, still prefer adopting offline modes to apply for a personal loan. So, how is the onset of digital lending helping us?
- Automated credit-underwriting using data modeling
- Instant personal loan approval
- Quick disbursement
- Innovation will ensure better quality of customer service – using chat-bots for online chats, etc.
- With a digital lending solution, borrowers don’t have to physically apply for a personal loan
- Credit risk (unsure of repayment), Market risk (unpredictability), and Operational risk (cyber-attack, etc.) are 3 risks that digital lending solutions face head-on while trying to serve the under-served.
- The traditional finance sector has always been a slow moving one. Digital lending provides “speed” as a prime feature.
- The processes are automated, and hence traditional lending solutions (such as banks) take more time to shift from years of standard tedious practices like lengthy paperwork, long list of documents, etc.
Traditional lending solutions require a long list of documents, dossiers of paperwork, and this leads to a delay in approval and subsequent disbursement. Looking at these pain points suffered by the common salaried man (or woman), Goa based Fintech Seynse Technologies Pvt Ltd developed a digital lending platform called Loan Singh.
Why apply at Loan Singh?
Loan Singh is the perfect source for an online personal loan because of its easy process of loan application and quick disbursement. A summary of the loan applicant lifecycle includes:
- The applicant provides Loan Singh with the required personal and financial information
- Loan Singh does a creditworthiness check on each borrower – based on their current financial position and credit bureau score
- Once the loan is approved, funds are disbursed to the borrower
Advantages of Loan Singh
Easy and Quick process –Loan Singh allows the online personal loan application process to be completed in a matter of minutes. It is best you take a look at the FAQ page of Loan Singh and understand what is required to be eligible for the online personal loan. Internet banking can be used to provide the latest bank statement. It is secure and you can also provide Loan Singh with permission to auto-debit the loan EMIs each month.
Credit bureau score – Loan Singh looks at your credit bureau score to determine your creditworthiness. A good credit bureau score means that you have been prompt in your credit repayments in the past. Thus, to ensure you enjoy a healthy credit bureau score, it is important that you pay your loan EMIs at promptly.
Minimal documentation – At Loan Singh, all you need for an online personal loan is a smartphone with internet access. With the whole approval to disbursement process being online, you avoid the time wasted in communicating with multiple middlemen.
EMI – Loan Singh’s EMI Calculator allows you to know the approximate loan EMI amount based on the tenure and personal loan amount. You can avoid loan EMI defaults by allowing Loan Singh to auto-debit the EMI amount before the payment due-date; directly from your bank account. You can track the EMI details from the Loan Singh dashboard.
Online personal loan myths busted
It’s time to bust some online personal loan myths.
Myth #1 – Tedious loan application process
Just because banks involve lengthy paperwork with long list of documents, does not mean Loan Singh also would require the same. Loan Singh only asks for your PAN, Aadhaar and bank statement.
Myth #2 – Anyone can apply for a personal loan
Just because a personal loan does not involve any collateral (such as a vehicle or a home), it does not mean anyone can apply for a personal loan. Only salaried individuals can apply for a personal loan at Loan Singh. So, if you are a student for example, either of your salaried parents can apply for the online personal loan.
Myth #3 – If you do not have a Credit Score, getting a personal loan will not be easy
At Loan Singh, applicants who have never availed a loan before can do so easily (unlike the tedious process at banks and other lending institutions).