An online personal loan is a kind of multi-purpose loan that can be taken out for any personal reason. The popularity of online personal loans has sharply risen in recent years due to a combination of factors including the digitization of banking and the spread of digital literacy. Additionally, the COVID-19 pandemic created a need for quick & easy financial succor, raising the demand for online personal loans. Here’s everything you need to know about online personal loans and how they are today revolutionizing the finance industry in more ways than one.
How Online Personal Loans are Changing the Finance Industry
Drawing a parallel between then & now, here are six ways in which online personal loans are transforming the finance industry:
- Then: Applicants had to manually calculate the expenses of a personal loan, including the equated monthly instalments (EMIs) they would have to pay.
Now: Since the whole process is online, applicants take the help of an online personal loan EMI calculator to get an idea about the EMI amounts and tenures. This gives a precise picture of their expenses before applying for one.
- Then: Borrowers had to personally visit a bank multiple times and go through the tedious process of furnishing elaborate documentation.
Now: Individuals can now apply for a personal loan from the comfort of their homes. An applicant can compare the features of a personal loan offered by different banks and complete the application process within minutes.
- Then: Personal loan options were limited offering a one-size-fits-all type of loan, irrespective of the profile of the individual and purpose of taking out the loan.
Now: Many banks nowadays offer personalized loan products catering to different categories of individuals. You can also find specific loan products to meet your particular financial needs, for example, for a wedding, higher education, medical emergency, and so on.
- Then: Borrowers could not exercise too much flexibility, be it in terms of loan repayment options or duration of the tenure.
Now: When it comes to an online personal loan, you are free to choose the duration of the tenure depending on your comfort level. Besides, there are several personal loan repayment modes you can opt from, including Standing Instruction (SI), net banking, Electronic Clearing Service (ECS), and so on.
- Then: A few years ago, taking out a personal loan from a bank or credit institution was rare in Tier-II and Tier-III cities and smaller towns of India.
Now: Thanks to the digitization of banking, the personal loan industry has acquired a wide reach. Whether you are based in a metropolitan city or a Tier-III town, an online personal loan is now easily accessible.
- Then: With a traditional personal loan, you had to contact a bank official for checking your application status, track your repayment history, balance tenure, etc.
Now: Thanks to digital technology, the entire personal loan process has gone virtual. You can get real-time data about your loan application and account including the number of EMIs paid to date, the EMI breakup structure, etc.
Apply for a Personal Loan!
Are you looking to apply for an instant personal loan online? Look no further than Indus Easy Credit Personal Loan offered by IndusInd Bank. With a super-easy and hassle-free application process that is completely paperless, the Indus Easy Credit Personal Loan comes with customer-friendly benefits such as low interest rates, simple documentation, speedy processing, and flexible repayment tenure. Apply for your loan today!