Bengaluru, Karnataka Jun 22, 2018 (Issuewire.com) - Disruptive technological innovations are on the rise in recent times, and the banking industry hasn’t quite been an exception to bearing witness to this. Speaking of which, a recent evaluation of disruptive market technologies reveals that banking is one of the top industries to be impacted by innovative disruptions. To be specific, it is the lending industry (that falls under the ambit of banking of course) that has borne witness to significant disruption. The cause for this is a particularly new instrument that has evolved from a traditional unsecured credit instrument – yes, we’re talking about instant personal loans. Once called just “personal loans” or “unsecured personal loans”, they’re now prefixed by the term “instant”, thanks to the disruption.
What is the cause of this disruption, you may ask? The answer is quite direct – Fintechs! They are the sole cause for this disruption - which is of course, very much welcome! Fintechs have effected this disruption in a large way, and have done so by exhibiting some very impressive attributes. It isn’t that the market has suddenly turned fluid – it has, from what we’ve seen in recent times, become more solid than ever, with a greater percentage of individuals getting access to credit.
It is safe to assume that Fintechs have opened up a new dimension in the lending space. There doesn’t really exist too much doubt about this, for they’re undoubtedly changing the way people access and borrow money.
Let’s look at how instant personal loans have impacted the lending market and the banking industry.
Minimal turnaround times
Instant Loans have a turnaround time of just 24-48 hours - pitch that against traditional banks that take at least 7-8 business days to disburse loan amounts! Guess this is where disruption began - feels like it at least! The speedy application process is courtesy of an advanced and seamless technological system that Fintech companies are adopting. Evidently, one of the main reasons why Fintechs have captured a larger share in the lending market is the very low turnaround time in disbursing loans, much unlike traditional banks.
Easy-to-meet eligibility parameters
Another aspect that has given vent to this disruption is the easy-to-meet eligibility parameters adopted by Fintechs. Let’s make a direct comparison here – as for the credit score parameter, private banks that were once recognized as market leaders require applicants to have a minimum credit score of at least 750, while Fintechs offering unsecured personal loans allow applicants to qualify with credit scores as low as 600 – massive difference indeed. Similar is the case with the income parameter – traditional lenders that include top private banks require applicants to meet minimum income criteria of at least Rs. 30,000 while on the other hand, Fintechs allow applicants with an income of Rs. 15,000 – Rs. 20,000 to become eligible.
These easy-to-meet eligibility parameters have allowed Fintechs offering instant credit to supersede the market share that private banks once held and were quite proud of, mostly in the unsecured credit space.
Instant Approval
When an applicant applies for personal finance from a Fintech company, he/she will receive instant approval. This happens through advanced credit assessment algorithms that immediately pull information on an applicant’s credit profile from the bureau. This helps applicants gain information on the status of their applications almost immediately, allowing them to look out for alternate options in the light of rejection. In most cases, as long as applicants don’t have instances of defaults and their credit scores meet the minimum criteria for instant personal loans from Fintechs, they will receive instant approval, with disbursals pending successful verification of documents.
Digital and paperless application process
The process of applying for online personal loans does not necessarily require physical paperwork – the process can be completed online. This includes filling out the application form and uploading supporting documents, online. Verification of the identity, income and residence are also carried out digitally, making the process paperless. Traditional banks are also increasingly incorporating the paperless framework, but haven’t quite been as successful as Fintechs in this regard.
Several Fintechs that offer instant credit have expanded their reach to a larger section of the populace that has been traditionally underserved for a long list of reasons. Moreover, instant loans are now available in most top cities in India, thereby allowing an even larger section of individuals to gain access to instant credit and enjoy financial freedom.
Qbera is a popular Fintech company offering instant personal loans to salaried individuals in India. Through its efforts, Qbera has enabled a larger segment of working-class professionals to get easy and instant access to credit. Currently, Qbera serves employees of over 7,00,000 companies in India, offers credit options to individuals with lower than prime credit scores, and allows individuals with incomes starting at Rs. 20,000 per month to qualify for an unsecured credit.
Website : https://www.qbera.com
Media Contact
Qbera anirudha@qbera.com 8971928484 1st Floor, Wolfpack Workspaces, #39, 8th Main Road, Vasanth Nagar. https://www.qbera.com
