The latest trend is not just loans processed fast but quick loans and even instant loans.
The latest trend is not just loans processed fast but quick loans and even instant loans. This may be a short-term loan or even a long-term loan. The present generation is growing up with online services, and speed is of the essence. It is difficult to believe that just a decade ago, people had to go through the laborious processes that required several trips to the banks or the non-banking financial company (NBFC)
Physical visits and manual intervention are histories now
Selecting the most suitable loan after scanning brochures, ads, and visits to several banks to know details and benefits.
- Filling up a physical application form and submitting it in person to the bank or NBFC with the required documentation. The amount of documentation became a bulky file,
- Applicants needed to follow up the progress and approval of the loan application. This often meant a few more trips to the bank or the office of the NBFC.
- Another visit was required to collect the loan cheque, and this had to be deposited in the bank where the registered account number of the applicant had been opened.
- There were a few more visits to submit EMI cheques. Gradually the facility of auto-debit was introduced, and the applicant simply needed to submit an authorization to the bank for auto-debit of the EMI every month.
- Finally, the borrower needed another visit to the bank or NBFC after the last EMI has been paid or if the borrower wished to foreclose the loan. Another final visit would be required to collect the clearance certificate certifying that the loan has been paid back in full.
It is difficult for a person familiar and comfortable with the manual method just described to believe that all this can be done and the loan credited into the account of the applicant within a few hours of applying for a loan, and even that is online.
So how is it done?
The process of applying for quick loans is completely online.
A person interested in applying for a loan needs first to check all the available loan apps, weigh the benefits and select the one most suited to his or her needs.
Once selected, the app is to be downloaded from the Google play store or Apple store. Downloading from these sources is safe, and the applicant can be sure of safety and protection from any kind of cybercrime.
The advantage of these apps is the sheer flexibility of operation and the other features. Some of the apps even give their users a card, and they can use it for features such as buy now pay later, and this facility alone opens the floodgates to a plethora of incentives such as cashback, discounts, and rebates during shopping, eating out, buying flight tickets and even traveling.
Documentation is much less for quick loans, but the following documents are still needed.
The ID proof- This is the most important document, and any one of the following documents serves as ID proof. They are also known as KYC (know your customer) documents
- Aadhaar Card
- Pan Card
- Voter ID card
- Driving license
Address proof- If any of the ID proof documents being submitted also has the correct registered address, the same document can act as ID proof cum address proof. If the address is different, an applicant can provide either a rent agreement or a telephone or electricity bill mentioning the present address.
Income Proof- Salaried applicants will need to provide their last 3 months' payslip and the last 6 months' statement of the registered bank account. Applicants who are self-employed or with their own business will need to show the income statement for a year and audited profit and loss statements for the past 2 years. They will also need to provide a statement of their registered bank account.
In case any other of the above ID proof documents have been submitted, the PAN card will need to be submitted.
The applicant for a quick loan, even if it is a short-term loan, will need to upload a recent photograph to complete the documentation.
The application and the documentation for the quick loan are completed. The applicant needs to wait a few hours to be informed of eligibility and to get the loan if confirmed to be eligible.