As a fast-paced generation of spenders, we are more adept at using our credit cards and digital wallets for payments instead of giving cash or prefer to make our payments online. Our new-age demands should be met by the brands and businesses we indulge in. And owing to everyday innovations in Fintech, transactions are getting easier for both parties involved. And financial institutions have especially seen a revolutionizing phase that enables individuals to borrow from them increasingly. Many financial institutions provide ease of access at the click of a button through apps and websites, and this instantaneous process has become one of the many reasons why digital lending is gaining popularity in India.
To further understand the dynamics of loan apps that are transforming the way we avail loans, it is essential to understand what digital lending is. Digital lending means that all stages in the process of money lending go online. From applying for personal loans to receiving the credit amount, the idea behind digital lending is to provide a seamless experience to customers. With digital lending, both the borrower and lender can effectively reduce their time and effort in the loan process.
Financial banks have long dominated the credit market of India, but the cumbersome process of applications and their delays in banks is very common and well known to all. With lengthy loan applications and a lack of urgency at the end of bank officials, people would often decide to borrow money from friends or family. But since this form of borrowing involves greater risks than financial institutions, borrowers often find themselves in a split. As a solution to reduce the credit gap in India, fintech has provided a groundbreaking digital revolution with digital lending platforms. Digital lending has opened new doors of opportunities for financial institutions to provide attractive loan schemes to those in need:
One of the biggest reasons why borrowers are turning their heads to loan apps is their reduced paperwork for loan approval. Many digital lending platforms like True Balance require minimal documentation like your ID proof and PAN card. Additionally, the recent introduction of e-KYC has enabled such financial institutions to verify the borrowers’ identity and documents to approve their loans. Such lenders also approve the instant personal loan and disburse the amount promptly.
One can now easily apply for a personal loan apply with unconventional lending platforms. Digital lending makes full use of the smartphone culture in India and generates great clientele with its borrower-friendly approach. One can access their credit funds conveniently without taking multiple long and mentally exhausting visits to the bank.
Traditionally, financial institutions apply tedious procedures to evaluate the borrower’s repayment capacity. They are based on multiple factors-- like the prospective borrower’s credit history, tax returns, bank statements, etc. Thankfully, digital lenders like True Balance deduct the weeks and months' worth of work significantly and also take into account the individual’s social worth to evaluate the creditworthiness of the borrower.
With instant loan apps like True Balance, new and emerging technologies create flexible transactions between the borrowers and lenders to cultivate a culture of trust. Instant loan app have changed the way we avail loans, and have effectively reduced the credit gap in the nation. However, these platforms must launch and update technologies to sustain themselves in the credit market.
I am a blogger. I have a huge passion for art, fashion, music, and reading.