As the financial sector, especially the capital lending sector started adapting to technological advancements, the borrowing experience of individuals has enhanced. These apps have revolutionised the way potential borrowers apply for and manage their loans by eliminating the need for paperwork and prolonged approval waiting periods. Furthermore, these apps have simplified the application process and empowered individuals to gain control of their financials. This article covers the evolution of these apps, how they simplify the loan application process and the steps to apply for a personal loan using a personal loan application.
How Personal Loan Apps Have Changed Over Time
Before personal loan apps were introduced, individuals had to physically visit the lender’s branch and complete the lengthy loan application process. This tedious process involved extensive paperwork, multiple visits to the branch and a long application approval time. However, with the introduction of personal loan applications, all these processes were discontinued. Individuals can apply for a loan anytime, anywhere with modern personal loan applications and complete the application within hours without long waiting hours. Let us understand all the benefits of using a personal loan app in detail.
Personal Loan Apps - Simplifying Loan Applications
Various features that allow personal loan applications to simplify the loan applications are as follows:
Smooth and Swift Application
The ease of application process is one of the key benefits of modern loan applications. To meet the urgent capital requirement, borrowers can quickly fill out the application form, upload the necessary documents, and submit the application form, from their smartphones. Most applications only demand basic information such as proof of identity, income details and current status of employment. The digitisation of the application process has reduced the need for physical paperwork and further reduces the chances of errors, making the application process smooth.
Immediate Approval and Loan Disbursement
As opposed to traditional loan applications that demand several days for approval, personal loan apps leverage technology to assess the authenticity of the documents provided by the borrower and swiftly approve the loan applications. Post-approval, the funds are disbursed to the applicant’s bank account. This makes the process even more convenient. This feature is extremely useful in situations in which the user needs to address urgent capital requirements.
Limited Documentation
Compared to traditional methods, online personal loan applications have significantly reduced the amount of documentation required to apply for a loan. You can easily complete the Know Your Application (KYC). Personal loan apps facilitate digital KYC which allows you to complete the process by submitting scanned copies of your. identity proof, income proof, and proof of employment. This way, the need for physical documentation is eliminated and the entire process is simplified.
Loan Offers Customised to the Borrower
Using the applicant’s financial information modern personal loan applications can help design loans to align with the applicant’s financial needs. Financial information can consist of anything from credit score, spending habits, income level, and credit history, to repayment capacity, This feature ensures that the terms of the loan are suited to the applicant and assists them in repaying the total loan amount. Additionally, many loan apps allow users to check their loan eligibility, helping them to make informed financial decisions.
Applying For a Personal Loan with a Simplified Application Process
Individuals can apply for a personal loan with a personal loan app by using the steps given below:
Step 1: Download App and Open an Account
After downloading a reputable personal loan application, create an account by providing your phone number and verifying your contact details via a One-Time Password (OTP).
Step 2: Complete KYC and Choose Loan Parameters
By submitting the required documents, users can complete the verification process. Post-verification, choose various loan parameters such as total loan amount, interest rate and the duration of the loan. Using an EMI calculator can help individuals in planning their repayment schedules.
Step 3: Submit Application and Loan Amount
Apply after entering accurate information. Post-approval, the total loan amount will be disbursed to the bank account specified by the user.
Conclusion
Personal loan apps have made accessing credit to meet urgent financial needs easier than ever before. They offer a smooth and swift application process, immediate approval and loan disbursement. Also, with limited documentation and customised loan offers, modern personal loan apps like those offered by Tata Capital have made borrowing capital easier. Moreover, by using the steps given below, users can quickly acquire loans to meet various requirements such as medical emergencies, education or home renovation, in comparison to traditional methods that consume a lot of time. Various EMI calculators provided by most personal loan apps further simplify the application process as they help borrowers plan their loan repayments.
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