Paperless Personal Loans meet your need for funds without the hassle of paperwork. Lenders can receive, verify, and approve loan applications quickly through the digital lending process.
Borrowers prefer paper-free borrowing as it saves them time and effort and also offers electronic repayment options.
So, what is a paperless loan? Let’s find out:
What is a paperless Personal Loan?
A paperless Personal Loan is a loan where the entire application and approval process happens online without requiring any physical documents. The online approval process means you can apply for and potentially receive the loan funds, all from the comfort of your device. For paperless personal loans, you send soft copies of your documents online.
Here is how it works:
- You can upload scanned copies of documents like IDs, proof of income, and bank statements.
- Some lenders pre-fill portions of the application based on your online banking information with their permission.
- A few lenders also use video calls to verify your identity through real-time document checks.
Features and benefits of a paperless Personal Loan
Here are some of the key features and benefits of a Paperless Personal Loan:
No paperwork
One of the most significant advantages of opting for a paperless Personal Loan is eliminating paperwork. You no longer need to visit the lender's branch or fill out multiple forms by hand. You can complete the entire process online, saving you time and effort.
Faster disbursal
You can choose electronic fund disbursement, meaning the lender sends the loan amount directly to your bank account. With automated systems in place, lenders can process applications quickly, resulting in faster disbursals. Some lenders even offer Pre-Approved Personal Loans, further expediting the process.
Eco-friendly approach
Applying for paperless loans contributes to environmental conservation by reducing paper usage. Electronic loan applications eliminate the need for printing and manual document handling. It reduces the use of paper, contributing to an eco-friendly work culture and improving overall cost-efficiency.
Low cost
Lending institutions can reduce printing and processing costs by digitising the loan application process and using the virtual loan processing system. These cost savings can be passed on to borrowers, making paperless Personal Loans more affordable compared to traditional loan processes.
Highly secure
Traditional loan application processes carry the risk of losing critical documents. However, with paperless Personal Loans, you can scan and store your required documents digitally, reducing the risk of misplacement or theft. Lenders also implement stringent data protection measures to ensure the security of your information.
Hassle-free procedure
The paperless Personal Loan procedure eliminates the need to fill out lengthy forms and wait for days for approval. With online applications and automated digital document verification processes, you can experience a hassle-free online borrowing experience. Digital credit assessment and online financial transactions further streamline the process.
Instant approval
Lenders now approve digital loan applications within minutes. You can use digital signatures for the automated software systems to perform the verification process, resulting in quick approvals. This makes a paperless Personal Loan an ideal solution for emergencies when you need immediate access to funds.
Axis Bank offers Personal Loans to eligible borrowers approved as quickly as possible. You can borrow up to ₹25 lakh, which can be repaid in tenure ranging between 12 months and 60 months. Some of the key features of Axis Bank Personal Loan are as follows:
- No collateral required
- Simple, easy online process
- Low interest rates
- Transparent terms
- Flexible tenure
Eligibility for a paperless Personal Loan
Eligibility for a paperless Personal Loan can vary slightly between lenders. Generally, the eligibility requirements pan out as follows:
- Salaried employees and professionals between 18 and 60 years
- Minimum monthly salary of Rs 25,000 for existing Axis Bank customers and ₹30,000 for new customers
- A credit score of 720-750 plus is advisable
How to apply for a paperless Personal Loan?
- To apply for a paperless Personal Loan, you should choose a lending institution after proper thinking and research.
- If you are already an existing customer of a bank or lending institution, you can apply for a new loan without the need to submit paperwork.
- The lender already has your necessary details and will instantly approve your loan, especially if you have a sound financial condition and a consistent repayment history.
- Reducing your debt-to-income ratio can also increase your chances of loan approval. Lenders prefer applicants with minimal financial obligations.
Tips to get a paperless Personal Loan easily
Here are some tips to increase your chances of obtaining a paperless Personal Loan easily:
Before applying
Check your credit score: Aim for a good credit score (typically above 700), as it improves your approval odds and potentially lowers interest rates.
Calculate your debt-to-income ratio (DTI): Keep your DTI low (ideally below 40%) to demonstrate your ability to manage repayments.
Compare lenders: Research different lenders offering paperless loans, comparing interest rates, terms, and eligibility requirements.
Gather your documents electronically: Scan copies of ID proofs, income statements, and bank statements before applying.
During application
Choose a reliable lender: Select a reputable lender with a secure online platform for document upload.
Fill out the application accurately: Provide complete and accurate information to avoid delays.
Upload clear and legible documents: Ensure your documents are scanned properly and easy to read.
Enable pre-filled data options (if available): This can expedite the verification process.
Be prepared for additional verification: Be ready for a video KYC call or further document requests if needed.
Additional tips
Apply when financially stable: Having a steady income and manageable debt improves your loan eligibility.
Borrow what you need: Only borrow what you can comfortably afford to repay.
Review terms and conditions thoroughly: Understand all fees, interest rates, and repayment terms before accepting the loan.
Consider prepayment options: Explore options to prepay your loan and save on interest costs.
Also Read: Instant Personal Loan without documents: Eligibility, benefits & steps to apply
Wrapping up
Paperless Personal Loans have revolutionised the lending landscape by offering a convenient and efficient way to borrow funds. Opting for Paperless Loans includes faster disbursal, an eco-friendly approach, low costs, high security, and a hassle-free procedure.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
