The Digital World has invaded all aspects of our lives. The Internet caters to most of our needs, from Groceries to a Life Partner or a Personal loan.
Banks like other companies advertise their products aggressively on the Web to reach customers. Your search for a ‘Personal Loan ‘on the web will reward you with views like “Instant Personal Loan” or “Personal Loan in 2 minutes” These offers seem especially attractive if the need for funds is immediate. But Alas! There is no Bank or Agency which can release funds for a personal loan in the time frame implied.
What are the facts behind these catch words?
We at your loan advisors, in keeping with our policy of complete transparency are here to explain to you the true implications.
On filling your details on the Online Personal Loan form the following happens:
The service provider is able view your personal & financial details and determines the following.
- If you are eligible for a Personal Loan & the amount of funds required.
- This is the Bank which can provide you the Loan.
- An enquiry is sent to CIBIL to get your CIBIL score & credit history.
- If your details & CIBIL are positive, some Banks also give an online approval.
It is important to remember that only after the requisite documents are collected & the Form for Personal Loan is signed & submitted to the Bank, that the Processing of the Application actually begins.
Hazards of giving your details or documents online are the following
- There is a misconception that the Loan application is being processed.
- Precious time is lost before the processing actually starts.
- Indiscreet enquiries raised in the CIBIL will lower the CIBIL score.
- After giving an approval the application can get decline post the verification stage.
- Terms & conditions of the Loan are made clear only in the later stages.
On the other hand one cannot deny umpteen advantages of the Internet.
- Communication via mail can be instantaneous.
- Statements of Bank Account can be downloaded easily.
- Copies of documents can be simply mailed & printed.
- Verification of documents is easier as most Bills & Government id’s can be authenticated over the internet.
- Your Parent Bank will be able to process your Application for a Loan much faster as your personal data is already available with them.
- Scanning of Documents has now started to hasten the process.
- Status details of your Application can be viewed online.
After receiving the Personal Loan Application, there are definite procedure & guidelines that are streamlined by Banks for processing. Finally it goes to the Underwriter for the decision. Only after the Approval an agreement is signed, and here after the funds are disbursed.
Banks now have procedures firmly in place to decision the Application & release funds in up to 72 hours. Technology for the finance industry will need greater advancement before Banks are ready to approve a personal Loan online or in” 5 Minutes”
Yet A Personal Loan is still one of the fastest ways to generate funds!
To know more, or to apply for a loan, do visit our website!