What is a Paperless Personal Loan & How Does it Work

Paperless personal loans provide the convenience of applying for a personal loan online. Through online applications, digital documentation, and quick approvals, these loans eliminate the need for physical paperwork. This modern approach saves time, reduces environmental impact, and offers borrowers a fast and efficient method to secure necessary funds.

What Is a Paperless Personal Loan?

A paperless personal loan is a loan where the entire application process happens online without requiring any physical documents. When you apply online, you can receive the funds directly into your account from your lender. Throughout this process, you provide digital copies of necessary documents to prove that you meet the eligibility criteria. The interest rates and loan amount depend on your credit profile and income. This facility simplifies obtaining personal loans and allows you to apply for a loan from anywhere, anytime. 

How Paperless Personal Loans Work?

It is relatively easy to file for a paperless loan. Here is how the general process of applying for a paperless personal loan works:

• You apply for a paperless loan by completing online applications on the lending institution’s website.
• To complete the loan application process, you must upload scanned copies of documents like IDs, proof of income, and account statements.
• Your eligibility and loan terms such as interest rates are assessed based on your profile.
• Once your loan application is approved, the loan amount is transferred directly to your account. 

Features and Benefits of a Paperless Personal Loan

The following is an overview of the most significant features and benefits of a paperless personal loan:

Large Loan Amounts

Borrowers can opt for paperless personal loans typically ranging from INR 50,000 to INR 30,00,000, catering to various financial needs. This flexibility allows individuals to borrow only what they need, reducing the burden of repaying larger sums unnecessarily. The loan amount limits can vary from lender to lender.

Flexible Tenures

Paperless loan tenures range from 12 to 60 months, giving borrowers the flexibility to choose a repayment period that fits their financial situation. This variability in tenures ensures borrowers can better manage their finances and repay the loan without undue stress. In this case, too, the loan tenures can vary between lenders.

Attractive Interest Rates

Interest rates for paperless loans are generally competitive, making borrowing more affordable by reducing the overall cost of the loan. You should know the potential interest rates beforehand to calculate their minimum monthly payments. You can use a free personal loan EMI calculator to calculate your monthly payments. Try out different values for loan amounts, tenures, and interest rates to get a wider picture of the loan’s impact on your monthly finances.

Quick Disbursal of Funds

Once your loan application is complete and approved, funds can be disbursed quickly. For loan amounts up to INR 2.50 lakhs, disbursal can be as quick as 30 minutes*. This quick disbursal ensures that borrowers receive the financial assistance they need without delay, making it ideal for urgent financial requirements.

100% Paperless Application Process

The entire loan application process for paperless loans is conducted online. You can apply for a loan by filling out online applications and uploading scanned copies of necessary documents. This hassle-free online documentation process eliminates the need to visit a branch or deal with physical paperwork, saving time and effort.

No Hidden Charges

Paperless personal loans from reputed lending institutions offer complete transparency with no hidden charges involved. Borrowers are aware of all costs upfront, ensuring there are no surprises during the repayment period. This transparency builds trust and allows for better financial planning.

No Collateral Required

Paperless personal loans do not require any collateral, which makes them accessible to a wide range of borrowers. This feature ensures that individuals without significant assets can still access financial assistance. The absence of collateral reduces the risk for the borrower, simplifying the loan application process.

Eligibility Criteria for a Paperless Personal Loan

To be eligible for paperless personal loans at SMFG India Credit, applicants must be Indian citizens aged 22-65 years (25-65 for self-employed). They should be employees of the public sector or a registered private company or be self-employed. Salaried individuals need a minimum monthly income of INR 25,000 in Delhi/Mumbai and INR 20,000 in any other city. Eligibility income for self-employed individuals depends on their annual profit and profession.

You can check the detailed eligibility criteria here.

How To Apply for a Paperless Personal Loan?

To apply for a paperless personal loan at SMFG India Credit, follow these steps for a smooth loan application process:

1. Click here to start the application.
2. Enter basic details like mobile number, PAN, employment type, and pincode.
3. Validate your mobile number with an OTP and complete email ID verification.
4. Provide further information such as email address, date of birth, gender, income, and employment history.
5. Check the loan terms, including the desired amount, repayment schedules, fees, etc. Confirm your acceptance once satisfied. You’ll also get an option to choose a greater loan amount.
6. If you are employed with an organisation, please provide the relevant employment details.
7. Complete identity and address verification through CKYC, OKYC, or DigiLocker.
8. Provide your bank account details for our verification. Post-verification, you will be directed to provide some more details in the 'Additional Details' section.
9. Choose your preferred payment method between a debit card and internet banking, and set up eNACH.
10. Digitally sign the loan agreement after a careful review and confirm the same with an OTP.

Tips to Get a Paperless Personal Loan Easily

Improve your chances of getting a paperless loan with the following simple yet effective tips:

1. Check Eligibility Criteria: Before starting the loan application process, ensure you meet the basic requirements, including age, income, and employment status.
2. Prepare Your Documents Beforehand: Have digital copies of essential documents, such as PAN cards and proof of income, ready for online applications. Check out the list of documents on the lender’s website before you apply. 
3. Fill Only Accurate Information: Fill out the online application form carefully, especially your mobile number and account details. Incorrect information can delay loan processing and approval.
4. Maintain a Good CIBIL score: Many lenders have eligibility criteria of 750 credit score. You can improve your chances of getting a paperless personal loan by increasing your credit score. Pay your bills on time and avoid applying to too many loans simultaneously. 

Checking out the eligibility criteria, documentation requirements, interest rates, charges, and EMI before you apply for a personal loan will make the process smoother. 

Conclusion

Paperless personal loans offer a modern, efficient way to secure funding with minimal hassle. They simplify the personal loan process by eliminating physical paperwork and allowing quick online approvals. This convenience, combined with attractive rates and flexible terms, makes paperless personal loans a compelling choice for borrowers. 

You can apply for a 100% paperless personal loan with SMFG India Credit at attractive rates starting from 13%* per annum. Check out our personal loan eligibility calculator to estimate how much you can borrow and apply online today!