How Online Personal Loans are changing the dynamics of the financial space?
As per a recent survey, online personal loans share up to 87% revenue in the Fintech industry. With real-time solutions and quick delivery, online personal loans are rapidly changing the dynamics of the financial sector.
The fintech industry is changing the approach of credit delivery in India. The pandemic has shaped and provided a massive boost to the sector. In the financial year 2020-2021, there was a growth of 38% in the personal loan sector.
The fintech lending industry is believed to play a huge role in shaping the future of the credit industry.
How Fintech is Changing the Personal Loan Industry?
The fintech industry has made availing personal loans convenient, easier and faster than ever.
Borrowers don’t need to undergo the tedious application process nor do they have to wait in long queues to get their application approved.
Customers in search of personal loans are turning to Fintech solutions. There are multiple factors that make NBFCs and fintech companies a better alternative to avail personal loans.
Better Transparency
Online personal loans have a much better transparency compared to traditional loans. Online personal loans provides customers with the opportunity to track their loan repayment, calculate their EMIs using the online personal loan calculator. Through this transparency of the entire loan term, borrowers can pre-plan their money conveniently.
Debt Consolidation
The modern online money lending industry is driven by financial technology and innovation. It allows them to offer debt consolidation that is reliable, well-equipped and of high quality.
To meet the requirement of modern tech-savvy consumers, the online personal loan lenders are coming up with tailored terms and conditions. The T&C’s are designed to offer consumers with debt consolidation solutions.
Survey says that the debt consolidation market is unlikely to stay stagnant. Customers may require more loans to meet their evolving spending habits, unforeseen life events, increased cost of living or other emergencies.
Understand Customer’s Requirements
The best thing about online personal loans is that they understand the requirements of the customer and try to provide them with what they need. The fintech industry looks into the consumer’s financial behavior and history to predict their future and repayment patterns.
Lenders analyze a huge amount of data to segment their consumer base. They also build financial personalities using this data to reflect segments.
With this research, the Fintech or online personal loan lenders industry design products which are customized to meet the particular consumer’s base. It also helps them to create a personalized line of credit such as marriage loan or emergency loans that caters to the requirement of a particular customer segment.
Digital Verification
Fintech companies leverage the use of cutting edge technology to deliver customers with the best result with least effort. The entire loan application process is controlled using AI-based technology which helps in keeping the verification process accurate and fast.
Same Day Loan Disbursal
One of the best things about the online personal loans are their same day disbursal process. However, it might take more than a day but in most cases, the loan is disbursed on the same day of application.
Once the documents are digitally verified, the loan application will be processed immediately and disbursed on the same day.
The online personal loan industry is helping customers to get what they need by spending least effort and time. Through the usage of technology, the dynamics of the loan industry is shifting rapidly.
