Technology is the major reason behind most of the changes which took place in the last few years. Technologies keep on upgrading and so is its effect on the industries using these technologies. In the current time, a large number of industries are dependent on technology and our lending industry is not an exception. While the banking and lending industry was totally dependent on banks, NBFCs and credit unions- Now a numerous Fintech companies have come into existence and are providing loans to the customers, individuals and businesses, in comparatively less time. This has changed the complete lending process, making it quicker, easier and comfortable for the borrowers.
What is a FinTech?
In basic words, computer programs and other technology used to support or enable banking and financial services is known as FinTech. Financial Technology describes an emerging financial services sector in the recent years. Originally, the term was applied to the technology used in the back-end of established consumer and trade financial institutions.
Technology Behind FinTech
Financial Technology (FinTech) is the technology being applied in the financial services. These include new software and applications, processes and business models. The companies using all these and proving financial services to the customers are known as FinTech companies.
FinTech works more of a back-end, data centre processing platform. FinTech in recent years has come to be known as the basis for end-to-end processing of transactions. The process is done over the Internet via cloud services.
FinTech companies are using recent technology in banking and financial services. When these companies use technology such as software and clouds in the lending process it is known as FinTech Lending.
FinTech companies have literally transformed the way people borrow, right from the loan application process to the final stages of disbursal of the loan. There is an absolute ease in applying for a loan and the processing is even faster here.
Experiencing the high demand for the personal Loan, FinTech’s have stated their service with personal loans.
What are instant loans?
Instant loans are the personal loans delivered almost instantly or within the span of one to two working days. These loans are associated with FinTech companies as they use recent software and clouds to make the processing faster. With most of the traditional lending institutions such as banks and NBFCs, the processing of a personal loan application takes about 7-8 working days. But the availability of Instant personal loans with FinTech’s makes it available to us in just a few hours.
Features which Make FinTechs the preferred choice for Instant Loans
Online Availability of the Loans
FinTech companies offer personal loans online. One can easily apply for these loans by just going online on the fintech company portal and by filling the online application form.
Instant loan approval
When a borrower applies for a personal loan with a fintech, they receive instant approval or rejection based on their eligibility and profile. These companies work on risk-assessment algorithms to minimize the risk factor involved. Thus, receiving instant approval or rejection. Some parameters that determine instant personal loan approval or rejection include age, income, current working organisation, and credit score.
One of the best thing about choosing a fintech company for an instant Personal loan is the digital application process and digital verification. When you apply for an online personal loan from a fintech. Right from start to finish, everything goes online. The borrowers need to upload their identification, income and residential documents online. The documents are then digitally verified, thus saving your time and effort both.
As all the process with an Instant Loan is online with FinTech companies, if your loan application gets approved then the loan amount borrowed will be disbursed within hours.
Flexible Tenure and Loan Amount
Most of the banks that offer personal loans don’t use technology and with them one to borrow a minimum of Rs. 50,000 with tenures starting from 12 months to 60 months. But, with Instant loans from FinTech companies isn’t a limit on the maximum loan amount that can be borrowed though, most banks quote a maximum loan amount of at least Rs 25 lakh. Apart from this it is totally unsecured mean no need of collateral or security.
FinTech is path-breaking innovation and development in the banking sector and is miles ahead from traditional practices adopted by top banks for the lending process. Traditional practices here refers to physical document collections, physical verifications, and disbursal in weeks.