Applying for a loan digitally is an option that’s been offered by the Indian banking system for over a decade. But it’s only recently that it has seen a surge in popularity. This may seem surprising, considering the numerous advantages that a digital loan application offers.
While digital is by no means the only way to apply for a loan, those with a strong internet presence and used to conducting most of their business online can appreciate how digital loan application for loans is essentially the way of the future.
Here are four prominent advantages of applying for a loan digitally – that is, online:
- Minimal documentation required
When applying for a loan, the unending paperwork associated with it can be a headache. But when applying for a digital loan, paperwork is minimal. All you need is a smartphone or PC, a Facebook or Google ID, and a decent internet connection. Paperwork exists to inform the bank of your ability to pay back the loan, along with your credit score and habits. Banks can now procure this information online, eliminating the need for most paperwork – this is something HDFC Bank prides itself on. Even among banks that offer digital loans, HDFC Bank shines as an example of minimal documentation.
- Social presence supplements credit history
When applying for a loan online for the first time, it is easy to get a trustworthy ID solely on the basis of your social presence via your Facebook or Google profile. There is no need to validate your identity further or to make any further assurances of your ability to repay the loan. The bank knows your credentials and will approve the first loan for you based on just your social presence. HDFC Bank takes this a step further – after noting your credentials, it gives you a loan disbursal within 10 seconds!
- No prepayment penalty involved
If you have availed of a digital loan and you find yourself in a position to pay off the loan ahead of time, there is no penalty involved! Unlike other loan procurement options, where you must pay a penalty if you wish to repay your loan before the date agreed upon, this issue is non-existent when you applying for a loan digitally. Moreover, banks such as HDFC Bank offer many flexible repayment schemes that have a very comfortable range and duration, and can be customised as per your need.
- Quick and easy processing
The criteria for eligibility for a digital loan are presented in a way that the average user can readily understand. This is because there is no bank representative sitting across you to give you their spiel. This inbuilt simplicity allows prospective borrowers to know what they owe and how they must repay what they borrow. Moreover, one can be anywhere in the country – as long as you have an internet connection and access to NetBanking, you can get your loan processed and approved without delay.
Know more about the different factors that determine your loan approval.
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* Terms & conditions apply. Loan disbursal at sole discretion of HDFC Bank Ltd.
