With stricter guidelines from the RBI, transparency and efficiency are the core principles followed by all financial institutions. With all these developments, one of the most popular financial products in India i. , Personal Loans have undergone a massive transformation.
Changes in Personal Loans
It would not be an exaggeration to say that what we see now is a new «Avatar» of Personal Loans marked by several new features. If you are also intrigued about the changes in Personal Loans, here is everything you must know. Previously, lenders used to offer a standard Personal Loan with fixed repayment terms. But now, lenders have started offering many new types of personal loans for specific purposes with relevant flexibility and features.
Marriage loans, Travel Loans, NRI Loans are some of the most popular types of Personal Loans that are being offered by the majority of financial institutions. You can avail of a high amount of repayment flexibility to suit your situation. This has led to the creation of a new category of lenders that conducts its operations through online channels. These lenders are known as online lending companies, and they do not operate through any branch network.
Instead, they interact with customers through their websites and mobile apps. The entire process starting from application to disbursal, is completed through online channels. These online lending companies offer instant Personal Loans for amounts of up to Rs. 5 Lakhs with repayment tenors extending up to 36 months.
The maximum available amounts can now extend up to Rs. 40 Lakhs with multiple lenders offering personal loans for Rs. 20-30 lakhs. As a result, many individuals who are in financial distress prefer taking unsecured Personal Loans as compared to Secured Loans.
Though, the maximum amount available depends on the eligibility criteria established by the lender. Now, unless the applicant has a specified CIBIL Score, he/she can not avail of a Personal Loan. There is now no need for the customer to make multiple visits to the branch and stand in queues to submit Personal Loan applications. One can easily log-on to the website of the financial institution or use the mobile app to submit the application for a Personal Loan.
If any physical documents are required, even then, the customer need not go anywhere as the lenders offer a doorstep collection facility. Consequently, the processing time for Personal Loan applications has reduced significantly, with many lenders offering in-principal approval within a few minutes. Personal Loan interest rates now start from as low as 10. Consequently, lenders have now started targeting women borrowers with special incentives and attractive interest rates.