As online personal loans are gradually rising high. Having said that, trends are gradually changing in the personal loan market. Personal loans are a preferred way to finance your needs. Due to the convenience bestowed upon by personal loans, individuals are gradually making large purchases. It is not only applicable for banks, but also for NBFCs who have come up with personal loan offerings at affordable rates of interest. According to an RBI study, the unsecured finance, including personal loans and credit card equals to nearly Rs. 576,600 crores at the end of 2018.
Top Trends of Personal Loan Market in India
It has been clearly observed that the lending and borrowing market is becoming easy with each passing day. This way personal loans are becoming extremely important due to the increased demand in the financial market. Millennials are extremely open with their financial transactions and future planning. Let’s quickly understand a few breakthrough personal loan trends in the personal loan in the Indian market.
- Digitization of Personal Loans
Firstly, massive digitization has taken place inside and outside of the financial institutions. This has almost changed the way personal loans were earlier perceived by borrowers. All Banks and NBFCs now have an online lending platform where the interested parties can apply for their loan in just a few clicks.
- Flexible EMIs & Tenure
You are free to choose a suitable tenure as per your repayment capacity. Either you select a short tenure and make a quick repayment or you choose a longer tenure for eased out outgoing installments. So, basically your personal loan EMIs are amendable to change. It is simple to adjust your EMI amount according to your requirements and payment capacity. You can take help of the EMI calculator to know better your EMI value, this is recommended by most tech-driven lending companies.
- Minimal Documentation
With increasing digitization, personal loans are largely being used. This is pushing Banks & NBFCs to encourage less paperless and more automation. Now, you have to submit just as many documents as countable on your fingertips (this includes address proof, ID proof, bank statements). All the processes have been turned to the “AutoFill” mode. The app gathers information already stored on the system and autofill’s required fields.
- Promotion of Financial Awareness
A larger set of individuals are financially conscious now and do not take personal loans as a liability. There has been a found love in learning new means to the digitization and how does it affect the financial market. This is a great way to explore opportunities.
- Importance of Credit Score Audit
Credit score assessment has reduced the pressure from the newly introduced lending platforms. The credit score is closely scrutinized by reputed credit bureaus. So with a good credit score, you are easily eligible for an instant personal loan.
Let’s quickly encapsulate the 5 concepts related to Personal Loan Trends
- Digitization of Personal Loans
- Flexible EMIs & Tenure
- Minimal Documentation
- Promotion of Financial Awareness
- Importance of Credit Score Audit