A personal loan available online or on a digital platform is called a touchless personal loan. It is also known as an online personal loan, and requires minimal documentation, and is sanctioned in much lesser time than an offline interface. What makes touchless personal loans stand out? It is that buyers can go through the entire process without the hassle of contacting a consultant and fixing appointments. They can do it at their convenience from the comfort of their home.
Who is Eligible for a Touchless online Personal Loan?
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The criteria for being eligible for an online personal loan are the same as that of a regular personal loan. A client’s eligibility to take a loan relies heavily on their income, credit score, and any necessary additional data. A personal loan EMI calculator is a helpful tool for individuals wanting to check their monthly premium amount, too.
There are a few cases where other aspects also play a role in an individual’s eligibility. Some of these are:
- Type of employment
- Professional experience
The factors mentioned above are often crucial in a touchless online personal loan. Showcasing when and which lenders go beyond traditional eligibility measures while assessing a loan request.
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Documents Required to Avail a Touchless Personal Loan Online
Although there is a surplus of loan types and lenders in the market, the documents required remain standard. These documents are withheld by most adults and can easily be digitized. If you are looking to apply for a personal online loan, keep your documents in place to ensure speedy approval of your request. Instant personal loan-taking is straightforward with all the documentation in place.
The necessary documents include:
- PAN Card, Aadhar Card, Driver’s License, Passport, etc. for identity and address proof
- Bank statements, income tax return documents, etc. for income proof
- Salary slips or employer ID cards for employment proof
Once you have these documents, you are ready to get your instant loan and reap its benefits with instant approval!
What is the interest rate on online personal loans?
Given a large number of personal loan providers in the market, interest rates vary for borrowers depending on the details they provide. However, these differences are not influenced by the personal loan mode the borrower chooses. The general interest rates based on income and credit score are as follows:
- A borrower with an exceptional credit score can secure a loan with a 10-11% interest rate.
- A borrower earning a moderate-high salary can get a loan equal to or more than 15%. This can range up to 20 or 30%.
Most lenders use a risk-based pricing model. This is primarily based on the customer’s profile which includes their income, repayment capacity, credit history, etc. Thus, being aware of an approximate interest rate before applying for a personal loan online is essential for you to understand your financial standing.
What to do if you cannot process touchless online personal loans?
Most customers can navigate through the online mode of the process smoothly. However, some customers face challenges submitting soft copies of personal loan documents such as income proof, evidence of residence, or employment proof documents.
In such cases, one can scan and upload traditional paper documents. Lenders have the technology to take it from there and make those documents legible for usage in the loan-taking process. However, in some cases, potential customers still face challenges with the touchless process.
For app-based lenders, digital verification is vital for borrowers to avail of a personal loan online. Types of verifications, apart from digital verification, when carrying out quick loan procedures include:
- Phone verification ensures that only legitimate accounts create new profiles or apply for loans. This happens through oral verification of the borrower’s details.
- The online KYC process includes online Aadhar verification, eKYC, and Video KYC. These steps have enabled a 100% digitization of the lending process.
- There are still a few challenges in this fully online process, so some banking partners are comfortable with it, and others are not entirely on board.
You must get complete clarity on online verification processes to ensure a smooth online loan-taking experience. Lenders help resolve any doubts or queries on how the verification process works while offering instant personal loans at competitive rates. Hence, you get the necessary financial leverage easily and with minimal effort!