The current government of India is putting special emphasis on digital transactions. The option of paperless loan is one such initiative where individuals can get the benefit of the personal loan without needing to go through the hassling process of exhausting paperwork. All they will have to do is just apply for a loan through the online process and submit the soft copy of the documents. Once the verification process is completed, the loan amount will be initiated and transferred to their bank account.
Benefits Of Paperless Loan
Paperless loan is a significant upgrade over its predecessor as it further the initiative of providing immediate funds to the borrower without making him subject to a tedious paperwork process. Here are some of the benefits of paperless loans.
- The documentation required for a paperless is quite minimal. You do not have to fill in forms after forms and submit innumerable documents to get the loan. Only the most essential documents will be needed and that too through the online medium.
- The process is also faster when compared to the offline method. As soon as the verification process is completed, you can get the loan within a very short span of time. With the offline method, you would have to wait for a week or so at least before the loan was initiated. Since many people take loans for emergencies, the offline medium would not be ideal as it could have caused a significant delay.
- The initiative of the paperless loan also contributes to the ‘go green’ movement as you can save paper by going through the digital medium. So it not only helps you in getting the loan in a better way but also contributes to the environment conservation program.
- The cost of the loan processing amount is reduced as it cuts down papers, traveling, and time consumption.
- Convenience is the top priority of paperless loans. You can get the loan sanctioned without needing to go anywhere. Just sit back at your home and apply right through your mobile phone or laptop. Even doing it on Sunday will not be a problem as you do not have to visit a financial branch in person.
- The paperless loan method is more secure compared to the offline method. Here, you do not have to worry about the loss or damage of your relevant documents pertaining to the loan. Everything is managed digitally and hence removes the risk of any damage whatsoever.
Eligibility Criteria For Getting Paperless Loan
The eligibility criteria for getting a paperless loan is quite simple and undemanding. They are as follows:
- The individual must be a citizen of India to avail of this benefit.
- The minimum age for getting the loan is 21 years whereas the maximum age is 60 years.
- The individual must have some sort of employment. He can either be salaried personnel or self-employed.
- He should have a minimum salary as required for getting the said loan amount.
- His credit score should be 650 or above it.
Documents Required For Paperless Loan
Although the documents required for a paperless loan is quite minimal it involves some of the major documents which are as follows:
- Address Proof: Aadhar Card, electricity bill, voter’s ID, etc.
- Identity Proof: Aadhar Card, PAN card, voter’s ID, etc
- Salary Slip
- Bank Statement
- Form 16 from the employer or IT returns.
In a world where technological advancements are taking place in a rapid manner, it is important that all sectors keep up with it. As far as finance and loans are concerned, they are going in the right direction with the concept of paperless loans.