India has shown significant growth in economy in the past few years. But the economic inequality is still far exceeding India’s economic growth. According to the Oxfam survey*, the richest 10% of Indians own 80% of the country’s wealth, which is of course huge.
Online lending – Home Credit Leading NBFC’s
Impact of the Widening Socio-Economic Gap
The widening socio-economic gap has also affected growth of the middle class but despite this, the middle class today continues to aspire to have a better standard of living. Today with the rise of digital India, people are applying for cash loans from online finance providers that help them meet their small needs within an instant.
The New “Trendsetter”
Cash loans and personal loans are trending nowadays since there has been a substantial shift in the consumer behavior and spending patterns in the past few years. A report by World Bank** suggests that the middle class in India spends more on education, leisure, consumer durable and telecommunications. This has been possible due to the easy and instant availability of loans by online finance providers.
However these days, while sanctioning a loan, online finance providers critically inspect and analyse the need of the personal loan because these loans are unsecured and no collateral is attached to it.
Pitfalls of Manual Verification for Loan Sanctioning
There was a time when applying for a personal loan was a crucial financial decision which required a lot of thought process and physical effort. A low credit score would diminish the borrower’s chances of getting a loan and standing in long bank queues, paying multiple visits to the bank made it even more inconvenient. Also, the verification process used to take weeks and sometimes even months.
Technology is Steadily Changing
But today, thanks to some great advancements in technology, online finance providers like Home Credit have adopted electronic processing that has made the loan application and disbursal easy, quick and hassle-free for its customers. Also, when applying for a loan from Home Credit, you don’t have to worry about your credit score either because you once met the basic information criteria for which the loan gets sanctioned within minutes. Thus, making the whole process of applying for personal loans swift and smooth.
Mechanism of eKYC
Also, E-KYC (Electronic Know Your Customer) has improved the ID verification procedure to such an extent that the verification process which used to take days now happens within hours which helps in instant loan disbursal to the customers. Home Credit, one of the leading online finance providers, with its innovative technology and on spot procedures helps its customers to avail cash loans starting from Rs 25000 to Rs 50,000 in just a matter of minutes so that the customers can fulfil all their needs no matter how big or small they are.
Also read: e-KYC: The Catalyst of Easy & Fast Disbursal of Cash Loan
With digitization and technological advancements, every step of lending loans from online finance providers is now done electronically making the whole process completely paperless. This has made it easy for both the lenders and borrowers to avail and lend money.
With the digital lending platforms, availing a loan is now just a click away!
Sources:
**Oxfam survey
**World Bank
