How Personal Loans Transformed Over the Years?

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Personal loans are the saviors to immediate financial crises. It’s flexibility coupled with its non-requirement for collateral, has often turned it to the most sought after credit option for many people. 

With the advent of digitization, every sector has undergone a massive transformation. Easy to use interfaces, along with the rise of user-friendly apps, have eased up loan applications and approval rates. In this comprehensive coverage, we will take a look at the changes that personal loans have undergone in India over the years.

Transformation of a Personal loan in India

Before getting into the changes the loan has undergone, let us first look at the relevance of instant personal loan online in now a day. In previous times people stand up in the long queues of financial institutions for applying for the loan. But now there is no need to go to the lending institutions. All things from applying to tracking can be done via the internet.

Lenders currently offer several types of loans catering to the specific needs of the customers. Among these loan options, personal loans are unsecured and can be used for any individual need ranging from funding a vacation trip to managing expenses of a family.

Because of this ease in availing the loan with no defined purpose tied to it, many of them turn towards personal loans to mitigate their immediate financial crunches.

Hence the question arises: How has personal loan changed over the years? There are many in which personal loan changes. Here is how:

How Has Personal Loan Changed Over The Years?

  • Competitive lenders

With the increase in the number of lenders in the financial sector, the competition is on the rise. Lenders have now increased the loan approval ratio as well as relaxed the eligibility criteria. Applicants with low credit scores or no credit scores also stand a chance in getting their loans sanctioned.

With the customer, friendly lenders have potential applicants can now also understand the eligibility criteria from the comfort of their homes using easy eligibility calculators available on the website. 

  • Application ease

Now every lender has a bespoke app that is easy to download and use. These help potential applicants to quickly apply for personal loans without any hassle. Once all requirements are met, and after verification of the loan application lenders sanctions the credits to the applicants. Borrowers are also able to track their personal loan status in just a single click.

  • Attractive personal loan interest rates

Harmonizing with the potential customer needs, most of the lenders offer personal loans at affordable interest rates. Like some of NBFC’s personal loan interest rates range from 12.99% to 36%. The processing fee for the loans varies from 0% to 6% of the loan amount.

  • Personal loan repayment modes

Gone are the days when customers had to wait in long queues to repay their loans. As the number of personal loan requests increases, lenders have incorporated innovative digital methods for loan repayment. Applicants can repay their outstanding loans through net banking or standing instructions, and many more options.

  • Catering to all segments of people

Every lender now provides customized personal loan plans for applicants. It has helped individuals across income categories and sectors avail personal loans to fulfill their various needs.

  • Physical presence not required

A few years back, the applicant had to work twice as hard and make a physical presence at the respective lender’s office for loan applications. The advent of digitization and many amazing apps have helped applicants apply and get loans from any geographic location without any hassle.

  • Choosing a viable repayment plan 

Lenders, provide the online option of personal loan EMI calculator that help every applicant to calculate the EMIs even before loan applications. It allows applicants to choose a repayment plan that best synchronizes with their repayment and financial capacity. You will get the approximate amount you have to pay.

Final Thoughts

Personal loans are the most accessible credit tool available for sailing through a financial emergency. Applicants can choose a viable lender using eligibility and EMI calculators available online. By utilizing the digital platforms of personal loans online, applicants can make a hassle-free, healthy, and sustainable financial decision from a reliable lender.