DIGITAL LENDING

It is a new process of lending an amount to seekers. This process is performed online with the help of web platforms and mobile apps. The lenders may be a bank, an NBFC, or any private organisation or person.

Instead of going physically somewhere, the borrower can go to these digital lending platforms. Fill in their details and wait for the eligibility check. The eligibility check process is similar to the offline method. The credit score evaluation and repayment conditions are checked. The whole process is performed by Artificial intelligence enabling computer programs, which take a couple of seconds. This changes everything and removes all the difficulties. People are now often likely to move to opt for this online facility.

How is it different from the traditional Lending system?

In the traditional system, the borrower goes to a bank or other lenders and needs to show the physical papers first. The checks and verification are done manually, so it took a long time, almost a month. If the loan application is rejected, then the borrower needs to go to the other lenders and perform the same process. This was a very time-consuming and hectic process. Also, the borrower had very few local options.

In Digital lending, everything is done online, and processing speed is super high. Plus, the borrower gets all possible options at just one click away. The Digital Lending apps and platforms have their experts and support to help the customers.

 Importance of Digital Lending:

1. Banks, NBFC, Private firms, and FINTECH all are a partner in this activity.
2. Almost every type of loan from multiple lenders is available in a single app or web platform. The borrower can check and choose the suitable one.
3. Borrowers can directly contact genuine lenders.
4. Time-saving because online applications and evaluation systems give responses in a few minutes.
5. The processing fees and other charges are less.
6. After Digital Lending hit the market, the number of borrowers slightly increased.
7. For low CIBIL scores, good options are available.
8. The AI-enabled online option is error-free and accurate, which improves security.

Process of Digital lending:

1. The borrower needs to go to any suitable app or web platform.
2. Create a free account for mobile and email verification.
3. Fill in personal and professional details, income proof, address proof, PAN details, and other information asked.
4. Select the loan type.
5. Fill in details like tenure, EMI, etc.
6. The AI platform checks your application and calculates your eligibility.
7. If the borrower is eligible, then all permitted loan options from different lenders are displayed.
8. Selects the suitable one.
9. Then the file will go to the lender, and they will manually verify or check the details.
10. After that, they contact the borrower and ask for physical document verification.
11. The borrower can go to their office.
12. Once the physical verification is complete, the loan is sanctioned.
13. The loan amount is transferred to the borrower’s bank account.

 Here is the list of some famous Digital lenders in India:

1. PolicyBazaar
2. Paytm
3. Lendingkart
4. Pine Labs
5. MobiKwik
6. EarlySalary
7. Kissht
8. MoneyTap
9. CASHe
10. KreditBee
11. Capital Float

Conclusion: 

Digital lending is a good, secure, and super-fast method. Everything is online, so there is no need to go physically anywhere. Multiple options are available on one platform. It is excellent and safe for both the lender and the borrower. A little training is required, so always take the help of customer care or the experts.