Digitisation has made personal loans easily accessible through digital lending platforms, offering instant approval with minimal documentation. Applicants can initiate loan applications online and submit digital copies of required documents, replacing paper-based formats. Technological advancements have paved the way for digital lending platforms to offer instant personal loans through a seamless and paperless process, significantly expediting the loan application and processing stages.

What are ‘paperless’ personal loans

According to Vivek Veda, Co-Founder & CFO, of KreditBee, ‘paperless’ doesn’t imply ‘no documentation’; rather, it signifies that applicants can initiate personal loan applications online and submit digital copies of required documents, replacing the conventional paper-based formats. This flexibility empowers applicants to upload scanned documents from any location during the online application process.

The introduction of paperless personal loans has brought a sigh of relief to borrowers by eliminating the laborious task of completing forms and managing stacks of paperwork.

To navigate the process of securing an instant loan through a paperless approach, it is essential to consider some essential key points.

1)Essential documents are still necessary

Despite the streamlined nature of the paperless process, fundamental documents are still required to support the loan application. “This may include bank statements, salary slips, and other necessary documents that contribute to the approval process,” said Vivek Veda.

2) Alternative proofs

Vivek Veda said that proactively preparing additional documents, such as utility bills and Aadhar cards, can contribute to a smoother application process.

3) Digital document requirements

Certain digital documents are still required, such as income proof, PAN card, and Aadhar card.

“The process remains convenient, as there is no need to submit paper copies,” added Veda

4) Solid credit score

The credit score plays a pivotal role in determining creditworthiness, reflecting an individual’s past financial behaviour.

The era of paperless personal loans signifies a paradigm shift in the lending landscape, where technology facilitates a more efficient and user-friendly borrowing experience.

Source By: livemint

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