How Paperless Personal Loans work

23 Jun, 2017

Last year the government, not only demonetized the economy but also declared its intention of digitalizing the economy and making it go completely ‘paperless’. The ‘digitalization’ of the economy has already made its foray into something called as the ‘paperless personal loan’. This post will help provide an overview on paperless personal loans and how they function.

Understanding the basics

Thanks to the ‘digital’ drive led by the current government, more and more banks as well as the different financial institutions  are using technology to accept digital loan proposals and even sanctioning them in that fashion thereby completely eliminating any kind of paperwork. Thus, customers can now not only seek but also get their loan requirements sanctioned as per their comfort and convenience.

Let’s get started

By now you must have already got a rough idea of how the process of paperless personal loans must be functioning. Nevertheless, just to clarify any doubts which you may be having, if you have any personal loan requirement, then all you have to do is to fill up and submit an online loan application form. While submitting your application online, you are also required to attach soft copies of all the necessary documents which the bank or financial institution may require you to do for the purpose of ascertaining and ensuring your eligibility and credit worthiness in terms of your ability to repay.

Once you press the ‘submit’ button, your digital application is received by the bank along with the documents. The bank then scrutinizes the documents and approves the loan and credits your account with the amount of loan you must have applied for.

Stay safe.. stay aware

Clearly, paperless loans are here to stay. So in such case, what you must do is to read, re-read and ensure that you are aware of all the terms and conditions pertaining to your loan. So make sure that you read between the lines all the guiding terms, compare the loan proposal with those offered by different banks, check the repayment structure as well as any fees and charges particularly in case of foreclosure. This will only help and protect you and avoid any surprises later on.

Also, keep scanned soft copies of all your financial documents ready, like your PAN card, Aadhaar card, address proof, Form 16 as well as your bank statements as then applying for the loan becomes all the more hassle free.

So from today, go digital go paperless! 

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