How to get touchless personal loan completely online


Digitisation has made it possible to avail a personal loan digitally or online. The advent of everything “touchless” in this pandemic age has taken digital personal loans from being just fast and convenient way to take a loan to being the better and safer way of doing so. Perhaps, the offline paper personal loan application process may meet the same fate as a fax machine in a few years’ time.

Who is eligible to get a personal loan online?

Everybody who is eligible to get a normal personal loan is eligible to get one online as well. So, all salaried persons and professionals in a regular paying job can avail of an online personal loan. In fact, the reach of online personal loans is even wider than that of the normal personal loans as there is no geographical restriction.

Where can loans be obtained online

These loans are available from all leading banks, NBFCs and fintech platforms. Note that a customer may avail a digital personal loan from any lender of his/her choice and the one offering the best deal as opposed to necessarily taking it from the bank where the customer has a salary account.

Interest rates on online personal loans

It is also pertinent to note that online personal loans don’t have to be costly or come with high rates of interest or high processing charges. In fact, they may even be cheaper than regular personal loans. Depending on a borrower’s income, the company the person works for, the required loan amount and the credit score, the rate of interest may range from as low as 10.25% per annum (on a reducing balance basis) to as high as 36%. So, its advisable to compare various offers in the market and choose the one that suits the most.

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Also read:
Comparison of top bank personal loan rates

Updated digital KYC needed

The key to availing the loan at an attractive rate in a fast and convenient manner however lies in having a correct and updated digital KYC footprint.

How to get online loan successfully

Here’s a simple five point checklist for a successful online personal loan application:

  1. Your mobile number must be updated in your Aadhaar and bank account.
  2. You must have an active net banking facility on your main savings bank account in which you receive your salary every month and the mobile number updated with the bank must match the one you are applying the loan with and the one associated with your Aadhaar.
  3. Your latest current address must be updated in your Aadhaar and Savings Bank Account.
  4. You must be able to both receive and send emails from your official email address, in case you have one.
  5. You must have physical original copies of your main KYC documents, primarily your PAN card, Aadhaar card with correct current address, to be able to complete video KYC.

When loan process cannot be completed totally online

If you don’t meet any of the above five conditions may still be eligible for a personal loan but some part of the process may have to be done physically. Most common reasons why a personal loan applied online ends up necessitating a physical leg are as below:

  1. Different mobile numbers used in Aadhaar, bank account and loan application. In such cases, the online KYC and / or bureau check are likely to fail.
  2. Net banking facility not availed or deactivated. In such a case, you will need to upload bank statements on the loan provider website or app and then these will need to be verified, which may take time and delay your loan sanction.
  3. It is common for people to update only their permanent address and not the current address in Aadhaar and bank statement. In case your address updated in Aadhaar and bank statements is from a remote or native location while you are actually working in a metro location or a city, chances are that your application may get delayed or even rejected.
  4. Do you look the same as the photo on your Aadhaar card? Remember that video KYC uses machine-based face recognition and if your photo on the KYC documents does not match with the one captured in video KYC, the application may get rejected. So, if your Aadhaar has a photo without glasses and with a beard, it may be best to be the same when you appear for video KYC.
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So, before you apply for an online personal loan, do check if you meet the above requirements.

(The author is CFA and Co-Founder of MyLoanCare.in.)



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