Personal Loan: How is technology transforming the borrowing experience?

The use of technology in the financial sector has revolutionised the entire process of borrowing and transformed the user experience to a new level. From a quick and efficient process of submitting loan applications to customised offers, technology has simplified the entire personal loan application journey.

Online loan applications

Now it is no longer necessary to go to the bank’s branch to fill in the loan application form. With the help of the bank's online loan portal, you can complete applications from the comfort of your home. This facility is now provided by almost every bank and NBFC as it not only makes the entire application process quick but also helps cut down tedious paperwork and eliminates long queues at the bank’s branch.

Automated eligibility checks

Lenders now use AI programs which automatically break down your profile and assist lenders assess your profile for eligibility. This helps in speeding up the process of application approval and also provides a customised loan recommendation based on your profile.

With this, you also get the facility of pre approved loans through which you can easily get access to funds by getting instant eligibility approval. This way you do not have to wait for days to get an answer from the lender whether or not you are eligible for the loan, rather you can get the loan disbursed within hours post approval.

Paperless documentation

By eliminating physical visits to the bank’s branch, you can get rid of the tedious process of filling out application forms and submitting separate forms for every step. You can easily submit your documents online by uploading the scanned copy on the bank’s portal. With digital KYC (Know your customer) you can get the documents verified and approved within seconds which not only saves you a lot of time but also gives you a great overall experience.

Mobile applications

Now you can easily access and manage your personal loan through your phone any time. Almost every lender provides you with a mobile netbanking app through which you keep a track of your EMIs and the due amount along with applying for a top up and other services provided by the lender.

This app provides you with an inbuilt EMI calculator as well as round the clock customer support. By turning on notifications, you can stay up to date with the latest offers offered by the lender and apply if you wish to.

Chatbots and customer support

You can also get your queries answered anytime with the help of chatbots and 24x7 customer support. Chatbots have preset answers and can assist you with your queries and if in case the issue is critical, it can quickly connect you with the next available customer support or raise a complaint ticket which will be answered within the next 24 hours. These bots not only are capable to solve your queries but can also assist you with the loan application process and provide you with at any step.

In conclusion, technology has truly shaped the modern way of banking and has indeed saved us precious time. However, you must also stay vigilant while using technology as any leniency can make you fall into scams and cyber phishing. Always remember that banks and NBFCs never ask for any passwords or sensitive details over phone or SMS.

Hence, you must always be careful and not share your data with anyone unknown. You must also avoid using public networks for any banking purpose as these networks are an easy passage for hackers to get into your phone and steal your data. Hence, by keeping these things in mind you can easily enjoy the comfort of technology and save yourself time as well as get access to funds quickly.

(Note: Raising a personal loan has its own risks)