A myth is a widely held false idea, or belief, about anything. Some common myths we know of, as misfortune befalling us, are – a black cat crossing our path, not clipping fingernails at night, and never keeping broken glass inside the house. Is a black cat, in any way, related to our life’s problems? No!
Similarly, in financial lending & borrowing, there are many myths that have construed either because no one has had a valid reason of it not being a myth or no one tried to change the perception. Here we look at myths around personal loan, that need to be busted.
Digital lending, simply involves lending of money through online platforms or smartphone apps. It is a method of direct financing where individuals borrow and lend money, without agents acting like middlemen. 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 & credit starved salaried professionals. Many of us despite receiving our salaries via NEFT, still prefer adopting offline modes to apply for a personal loan. So, what is the onset of digital lending leading us onto?
- Automated credit underwriting using data modeling
- Instant loan approval
- Quick disbursement due to automated lending processes
- 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, technology outlay etc.) are 3 risks that digital lending based 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 will need to take more time to shift from years of standard tedious practices like lengthy paperwork, long list of documents, etc.
Traditional lending solutions like banks involve a long list of documents, dossiers of paperwork and delay in approval and 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
A digital lending platform like Loan Singh is the perfect option for personal loans because of its ease of use and quick disbursement. A summary of the process includes:
- The borrower provides Loan Singh with the required personal and financial information
- Loan Singh does a credibility check for each borrower based on their current financial position and credit bureau score
- Loan Singh facilitates mapping of lenders to borrowers
- Once the loan is approved, funds are disbursed to the borrower within 2 working days.
Advantages of Loan Singh
Some advantages of Loan Singh are
Easy and Quick process – A digital lending platform like Loan Singh allows the 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 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 whether you are credit worthy. A good credit bureau score means 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 Loan Singh promptly.
Minimal documentation – At Loan Singh all you need for a personal loan is a smartphone and internet access. With the whole approval to disbursement process being online, you avoid time wasted in 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 EMI repayment due-date, directly from your bank account. You can track the EMI details from the Loan Singh dashboard.
Personal loan myths busted
Now that you know what Loan Singh strives to achieve in the lending domain, it’s time now to bust some personal loan myths.
Myth No.1 – Anyone can apply for a personal loan
Now just because personal loan does not involve any collateral like vehicle or home, it does not mean anyone can apply for a personal loan. Only salaried professionals 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 personal loan.
Myth No.2 – Apply for a personal loan to pay another EMI
This is a big no-no. You are already in credit and seeking for another credit to clear off the first one! That can also result in disruption of your financial planning and could land you in debt.
Myth No.3 – 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. A digital lending platform like Loan Singh only asks for your PAN and bank statement 🙂