Personal loans are available now to anybody who wishes to secure the loan instantly and with minimal documentation. This has become possible due to digitization.
Technology has allowed lending platforms to offer pre-approved personal loans with online documentation to make the processing of loans more convenient, guides for easy and quick loans, and seamless. You might confuse ‘paperless’ with ‘absolutely no documents required’.
It is not the same. With a paperless loan, you will be required to submit the documents in a digital format instead of a physical document. It allows you to upload scanned copies of the documents from the comfort of your house. That way, you do not have to physically go to a loan provider to get a loan. Documentation is a very important part of a loan application process but this process can be very time-consuming and tiring and people often look for instant personal loans without documentation.
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Advantages of Paperless Personal Loans
There are a lot of reasons why you should choose paperless personal loans. Some of them are:
(i) Faster Loan Processing
Since the entire process is digital, it makes the entire loan process more efficient. From document submission to disbursement, the entire process online takes a few minutes.
(ii) Hassle-free process
One of the main advantages of paperless loans is the fact that the entire loan process is simplified. From the application filling to getting approval to disbursement- the entire borrowing process is online. Waiting at the loan provider’s office is a thing of the past now.
(iii) Quick Disbursal
The disbursal of a loan when applied online tends to be a lot faster than loan disbursement when the loan is applied via the lender’s physical office.
Who is Eligible for a Personal Loan Without Documents
Loan providers usually give personal loans without the need for documentation to bank account holders or existing borrowers as they already have their details such as Aadhar number, PAN, address proof, loan repayment history, income details, etc.
This removes the need for documentation for existing customers. With a lot of banks and NBFCs carrying out end-to-end digital loan processes from application to loan disbursal, you do not need to submit physical copies of the documents anymore.
Therefore, individuals who are looking for a paperless instant personal loan without documentation can apply to banks and NBFCs that have an online loan process.
All you need to do is upload your documents during the application process and based on this the loan provider will approve your application. Sometimes, lenders also provide pre-approved loans to some individuals based on their credit score/profile.
As the credit profiles of such individuals are verified, it allows the loan providers to disburse the loan much faster within minutes or hours of making the application.
How to Get a Personal Loan Without Documents
Few banks and NBFCs give personal loans without having to submit documents based on the customer relationship that they have with them. If you have a great relationship with the bank/NBFC because of your credit profile and timely payments, then the bank will offer you an instant loan without documents as they already have your information.
Some of the tips that you can follow in order to secure an instant personal loan online without the need to provide the documents:
(i) Good Relationship with the Lender
Make sure you have a good relationship with the bank by remaining loyal to them. This helps the bank in having trust which helps with your loan eligibility as well as your capacity for repayment. This makes sure that they are fully aware of your financial transactions made from your account and hence helps them to assess your creditworthiness.
(ii) Pay your Dues on Time
Pay your loan installments on time and if you have a credit card with them, pay all the credit card bills at the right time as it gives you a better chance of getting a loan with the NBFC/bank.
A missed payment indicates that you are incapable of handling your finances properly and therefore the bank will ask you for income proof.
(iii) Good Credit Score
Make sure to have a good credit score as it helps the bank/NBFC to have faith in you, that you will be a good customer.
(iv) Digital Loan Processing
A lot of banks/NBFCs are providing instant personal loans online now without the need for documentation.
The turnaround time for these loans is much less than loans taken via an offline traditional channel. Therefore, if you are in urgent need of funds then you can apply for a loan online. You can also go through online financial marketplaces where you can compare various loans and choose one that best suits your needs and requirements.
It is a dream for borrowers to get an instant loan without documentation. With all the steps of a loan process going digital, documentation has become a time-consuming step that you can avoid by taking a digital personal loan.
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