Imagine being drowned in the sea of endless paperwork and documentation. It is what happens in the traditional personal loan application process.
A paperless personal loan lets you borrow money with just a few clicks and taps on your phone.
In the paperless personal loan process, applications are completed in minutes, not hours. Documents are uploaded with a few taps on your phone.
Approvals are instant, not in days or weeks. Above all, the money is transferred to your account instantly.
This blog will help users understand the meaning of paperless personal loans, benefits, processes, and more.
Paperless personal loans - meaning
A paperless personal loan is a loan that does not require physical documents for application but instead requires the borrower to submit them online. These loans are also known as digital loans or e-loans.
With paperless loans, you can apply and potentially receive funds very quickly. You can upload scanned copies of documents like IDs, proof of income, and bank statements.
Some lenders pre-fill portions of the application based on your online banking information available and accessible.
How are they different from traditional personal loans?
Paperless personal loans | Traditional personal loans |
| Paperless loans can be applied, processed, and managed entirely online. | Traditional loans require borrowers to fill out lengthy forms in person. |
| Paperless loans can be disbursed electronically directly to the borrower's bank account. | Traditional loans can be disbursed through cheques as well. |
| Lenders can process applications quickly with automated systems, resulting in faster disbursals. | Lenders take time to process the application as verification consumes time with various documents. |
| Paperless loans eliminate the need for physical paperwork or documentation. | Traditional loans require documents in physical form and manually filled application form. |
Must Read: Types Of Personal Loans Available In India
Eligibility criteria
The personal loan eligibility criteria for availing a personal loan from Kotak811 are as follows:
Nature of Employment: Employed with an MNC, public limited company, or private limited company.
Age: Individuals aged between 21 years and 60 years are eligible.
Minimum Monthly Income
Kotak Bank Salary Account holder: Minimum net monthly income of Rs. 25,000.
Non-Kotak Bank Salary Account holder: Minimum net monthly income of Rs. 30,000.
Kotak Bank Employees: Minimum net monthly income of Rs. 20,000.
Minimum Educational Qualification: Graduation is a prerequisite.
Work Experience: At least one year of work experience is required.
You can calculate eligibility using Kotak 811’s online personal loan eligibility calculator.
The application process
Paperless personal loans have an easy application process. This section will provide a detailed overview of the personal loan application process.
Check your eligibility
As mentioned above, you must meet the personal loan eligibility criteria to avail of a paperless personal loan. Based on your inputs, Kotak811 can accept or reject your application.
Kotak811 has a personal loan eligibility calculator which can help you check your eligibility and repayment schedule so that you can manage your finances better.
Check the charges and interest rates
You must always check the personal loan fees and charges before applying for one. Refer to the table below to understand the charges and personal loan interest rates we offer.
| Personal loan credit facilities | Interest rates & charges |
| Interest rate | Starting at 10.99% pa |
| Loan processing charges (non-refundable) | Up to 3% of the loan amount + applicable taxes |
| Prepayment charges | For loans disbursed on or before 1 February 2020 - part prepayment is not allowed. For loans disbursed after 1 February 2020 (post-completion of 12 months) - part prepayment is allowed up to 20% of principal loan outstanding. (It is allowed only once per financial year) Payment of Rs.500 + taxes to be made for every instance of prepayment. |
| Repayment mode swap charges | Rs.500 + taxes per instance |
| EMI bounce charges | Rs.500 + taxes per instance |
Gather the documents
While applying for a personal loan with Kotak811 you must gather the documents required to avail of a paperless personal loan. They require minimum documentation unlike the traditional method and get work done.
You must scan the documents and upload them on the application portal. Ensure the scanned documents are clear and correct to avoid any discrepancies.
Calculate the EMI
The most convenient tool offered by banks is online personal loan EMI calculators. Within a few seconds, you can get accurate results and allocate your funds to meet the repayment obligations.
Using the Kotak811 EMI calculator is quick and easy. Enter the loan amount you wish to avail, interest rate, and tenure.
Using an online EMI calculator allows you to calculate the repayment amount, so you can plan a budget.
Must Read: What Is Personal Loan & How It Works?
Fill out the application form
Lastly, fill out the application form. Visit the Kotak 811 and locate the personal loan section. Select personal loan and click on Apply now. Fill in your personal information, such as name, age, contact number, etc., and click on proceed. You must then upload the scanned documents and click on submit.
Usually, paperless personal loans are processed within one day and are disbursed immediately after approval.
Pros and cons of paperless personal loans
Before applying and finalising instant paperless loans, you must assess the pros and cons of the same. It helps in understanding whether you should opt for the same or not.
Pros
Convenience: Since the paperless personal loan is online, you no longer are required to visit the bank branch. It eliminates the need to fill out applications manually and saves significant time.
Faster processing: As soon as the lender verifies your documents, the loan amount is transferred immediately to your bank account. You can also get a pre-approved personal loan, making the procedure even faster and easier.
Accessibility: Paperless personal loans are accessible to various individuals. You can customise the loan according to your needs and repay the amount timely to have a smooth experience.
Cons
Lack of connection: Online borrowing reduces face-to-face meetings with loan officers, which can be detrimental to borrowers who prefer personal guidance or have complicated financial conditions.
Predatory lenders: The Internet loan market is huge, and not all lenders have borrowers' best interests in mind. Some predatory lenders may take advantage of vulnerable borrowers by proposing high-interest loans or charging hidden costs.
Limited regulation: Online financing is a relatively new concept, and legislation may differ from one state to another. Some online lenders may operate in legal grey areas, making it difficult for borrowers to obtain relief in the event of a disagreement.
While paperless personal loans offer undeniable benefits, they also come with potential risks, including higher interest rates and the prevalence of predatory lending practices. The future of paperless personal loans depends on finding a balance between innovation and consumer safety.
By employing technology to improve transparency, affordability, and accessibility, Kotak811 creates a financial environment in which people can comfortably handle their borrowing requirements while protecting their long-term financial well-being.
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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
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