Few years ago, opting for a Personal Loan to satisfy your monetary requirement was not a common thing to do. It was considered a big deal, if any one who is earning a handsome amount, is going for a personal loan. But with constantly changing scenario of India, Personal Loan is getting easily accessible. With the advancement of the fin-tech platforms, Personal Loan is available to each and every individual with just few clicks. With continuous changing trend, Personal Loan as a financial product has gained much popularity. Now, Personal Loans are available with easy documentation and hassle-free approval process.
Changing Trends in Personal Loan
Following are some of the aspects of Personal Loan changing trends-
- Digital approach to Personal Loan– Earlier Personal Loan was available only in banks through offline process. You were supposed to go physically to the banks and take information related to the loan, and then apply for it. Moreover, the loan processing process was very time-consuming. But with the advancement of the technology, today you just have to visit any bank’s official website or any third party fin-tech platform and compare the loan features and complete the loan application process within minutes.
- Attractive interest rates– Today, lending financial institutions offers reasonably low-interest rates for personal loan. This low-interest rate personal loan helps in enhancing the personal loan sector in India. You can compare and check interest rates of different banks online and then can apply for the loan as per your choice.
- Available for different categories of people– Personal Loan is available for different sections of people like- individuals with different income and employment status. Also, different products of personal loan are available for the pensioners.
- Data Analytics for Credit Rating– For personal loan approval process, lending institution does a background check on applicant’s repayment history, income, current debt, etc. Nowadays, financial institutions are using new technologies such as big data and analytics to get information on the borrower’s credit history. Credit rating agencies use mediums like social media, mobile wallets, etc. to get a better info.
- Easy disbursal of loan– Earlier the loan approval process was very time-consuming and tiring process. But now, with digitization of applicant’s records and information, the loan application process is quite fast and smooth. Within 72 hours, the loan approval and disbursal process will take place.
- Society acceptance– Earlier, a stigma was attached to borrowing money from financial institution. But nowadays, taking personal loan has become a very common. This has improved the financial situation and younger working generation are opting for the loan to enjoy its benefits.
- Reason for loan– Opting for Personal loan was considered as an option to meet any kind of financial emergency. But now, you can use it for any kind of need like- vacation with family, child’s education or buying an asset. There is no hard and fast rule for the usage of personal loan.
- Informed guideline– With the initiation of CIBIL and its defined bifurcation, the repaying capability of the borrower is easily measured. Following this, the lending institution can give more loans to its applicant. Banking and other financial institutions are strictly abided by the rule of credit score to approve the loan process. The positive effect of CIBIL is, better repayment structure and a decline in the number of defaulted payments.
- Systematic monthly repayment– Repayment of loan is possible through systematic monthly repayment. To understand borrowers risk appetite, systematic EMIs (equated monthly instalments) are offered which allows easy repayment schedules. This systematic repayment schedule helps to reduce monetary burden of the borrower.
- Personal Loan EMI Calculator– Before applying for the loan, you can calculate your (EMIs) with the help of Personal Loan EMI calculator. Using this online EMI calculator, you will get the details of EMI amount for different loan amounts and tenures. You can then decide your loan amount depending on your repayment ability.
- Repayment modes of Personal Loan– There are various modes through which you can repay your loan. The different payment modes are- Standing Instruction (SI), Electronic Clearing Service (ECS), net banking, etc. These repayment modes help the borrower to repay their loan with a hassle-free way.
- Improving Credit Score– Personal Loan helps in building credit history. If you take a Personal Loan and repay it properly, your credit score will improve. When you maintain a good credit score, your other debt applications will also get approved easily.