Online Instant Paperless Loans: Benefits, Eligibility Criteria And Other Features  

Personal Finance

With the world advancing technologically, every small task or every little work is expected to be done within minutes. Technology has reduced human efforts, and things have become easier from transferring money or talking to someone staying miles away. When everything is made available at your doorstep, why do we still rush to banks and financial institutions for loans? This article will emphasize the need and where you can get an online paperless loan instantly.

What is a Paperless Loan?

A paperless loan involves a financial transaction wherein one party or individual agrees to give another party or an individual a certain amount of money. Here the loan giver expects that he will receive the principal amount’s repayment together with the fee, interest rate, or commission agreed upon by both parties through any online medium or over the phone.

Features and Benefits of an Instant Paperless Loan 

• Getting any instant personal loan with documents is a hassle-free process.
• The customers can apply for loans and get them sanctioned with ease and convenience.
• The simple procedure involves filling out and submitting an online form on the application.
• Few basic pieces of documentary evidence need to be attached in the form of a soft copy and the application form makes the process faster.
• The bank or the financial institution then evaluates the documents and inquires about the purpose of the loan.
• Assessing the creditworthiness of the applicant is a crucial step. After the bank receives all this information, they scrutinize the same and then approve or reject the loan application accordingly. And in the end, the amount of the loan is then credited to your account.

Top Ways People Can Utilize Instant Personal Loans 

Instant personal loans can benefit you in many ways if utilized wisely.

Following are some of the ways in which you can use a paperless instant personal loan:

• Business expenses: If you have an established business, you need to have a flow of funds to maintain day-to-day expenses. Sometimes it might happen that you are in urgent need of a lump sum amount which might not be available right at that moment. Under such circumstances, you can get a personal instant loan to meet such needs.
• Emergency medical expenses: An instant personal loan can be a great option to fund all your emergency medical financial requirements. You can use the amount to conveniently manage sudden medical treatment costs. 
• Debt consolidation: One of the best ways to utilize an instant personal loan is to pay off all your loans and credits easily. This will help you manage your personal finances efficiently and also help to improve your credit score significantly.
• Foreign education: You can use an instant personal loan to fund your child’s foreign education. You do not need to opt for an educational loan that usually comes with strict eligibility criteria. Also, you do not need to put any of your valuable assets on the line to avail funding for your child’s foreign education.
• Travel expenses: You can get a personal loan for foreign travel purposes. This high-quantum personal loan would be sufficient to cover all your foreign trip expenses easily.
• Home renovation: This is also one of the ways to utilize your personal loan. If you wish to renovate your home and install modern appliances, and furniture or make some adjustments, you can fund the expenses associated with it using an instant personal loan. Home renovation will also enhance the resale value of your property.
• Improving credit score: Maintaining a healthy credit score is important for every borrower. If you have debts to pay off but running out of options, you might just take out a personal loan to pay them off. Not being able to repay your debts on time will hamper your credit score.  

Eligibility Criteria for an Instant Paperless Loan

Every individual has to fulfil a few basic conditions and requirements to be eligible for any instant paperless personal loan or paperless loan approvals. The majority of the individuals fall under the basic criteria, which are shown below:

1. The individual or anyone applying for the loan must be a citizen of India.
2. The age of the individual should be from 21 years to 60 years.
3. Individuals must be employed.
4. The individual or the applicant should have a minimum salary as specified by law.
5. For businesses, the minimum threshold amount is decided based on annual turnover or the profit after tax, depending upon the industry and sector the company is running.

Who Should Apply for a Paperless Loan?

 A paperless instant loan is meant for quick and easy fund availability to deal with financial emergencies. As a paperless loan is a digital loan it is ideal for those who are too busy to visit a bank or any financial institutions and cannot go through the tedious verification and application process. They can get instant approval of paperless loans from the comfort of their homes at any time.

You can also apply for a paperless personal loan:

• To meet a medical emergency
• To meet expenses of a sudden unplanned wedding
• To meet educational expenses
• To refurbish your house, etc.

Documents Required for Availing a Paperless Loan

Online instant paperless loans are easy to apply for. The process is also simple, as explained above. Here is a list of a few documents which are mandated by law to apply for a paperless loan. The number of documents to be submitted varies according to the companies. The list includes:

• Address proof (Rent agreement, passport, Aadhaar card, utility bill, voter id, etc.)
• Identity proof (Aadhar card, voter id, PAN card, etc.)
• Bank statements
• Salary slips
• Form 16 or IT returns.

Keep a scanned soft copy of all these documents, which makes the application for the loan more hassle-free, and it is always a good practice to do so.

Also Read: How To Get An Instant Personal Loan With Aadhaar Card

Why Online Paperless Loans are Better Than Offline Loans? 

There are many advantages of instant paperless loan approval that we might not have come across. Being updated with technology always helps in the efficient and optimum utilization of available resources. Few of them are enumerated as under:

• Minimal documentation is required.
• Tedious and lengthy procedures for filing papers and other documents can be eliminated.
• The speedy process of granting loans and the amount being received from the lender is also faster.
• Going digital saves paper and thus focuses on the eco-friendly aspects also.
• Loans at a lower cost as the costs of transport, paper printing, copies, etc., get eliminated.
• More security is involved as compared to papers because many instances of discrepancies or unethical use of paper documents can be made.

Applying for an Online Paperless Loan with Navi

When it comes to paperless personal loans, Navi has been emerging as an important application as well as a digital lending platform for paperless loans. It provides you with a loan of up to Rs.5 lakhs instantly through a paperless process in your bank account. To apply for an online paperless loan with Navi, the following simple steps should be followed:

• Download the Navi mobile application and select apply for an online personal loan.
• Select the loan and EMI amount. Along with it, the EMI tenure and the interest rate are also specified.
• Complete the KYC using PAN card and Aadhaar card details. A selfie also needs to be uploaded, and the parent’s name has to be mentioned.
• Instant money is received in the bank account as you will be providing the bank details in the application.

Also Read: What are Pre-Approved Personal Loans: Interest Rates, Benefits And Eligibility

Things to Consider before Applying for An Instant Paperless Loan

Getting a paperless loan is an instant and hassle-free process. As convenient as it may sound, you should still be careful about the following factors before applying for instant paperless loans:

• Loan amount: Before you apply for an instant loan make sure that you can repay the amount without straining your monthly budget.
• Interest rate:  The interest rates for personal loans vary from one lender to another. Make sure to compare among lenders and choose carefully from the one with an interest rate affordable to you.
• Other costs: Apart from the interest charge, there are many other charges associated with a personal loan such as processing fees, prepayment charges and late payment penalties. Make sure you go through all the terms and conditions carefully. 

Final Word

Thus, we can conclude that because of instant processes in the lending sector, we have been able to save a lot of time, and obtaining a loan sitting at home has become trouble-free. For a developing country like India, paperless loan approval is a big thing, and it will grow shortly.

FAQs on Instant Paperless Loans

Before you go…

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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.