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Personal Loan Disbursement Process in Detail
Posted on Monday, June 3rd, 2024 | By IndusInd Bank
Online disbursement of personal loans is a swift process, thanks to technology. Modern tools like artificial intelligence (AI), data analytics and machine learning have helped the world of finance take a quantum leap in upgrading customer experience to the next level. The judicious deployment of this technology has empowered customers to the extent that they can access any financial product from their smartphones. Take the benefit of technology and get an instant loan online.
How Technology has Digitised the Personal Loan Application Process?
In today’s fast-paced world, all you need for a personal loan application is a smartphone or a laptop to complete the entire process without visiting the bank.
While you apply for your personal loan online, AI-based algorithms concurrently check the probability of your repaying the loan amount. This is done by considering your credit score and credit history. The bank completes the disbursement of funds in your bank account within a short time based on these results.
Also Read: How to avoid rejection of your Personal Loan Application?
Personal Loan Disbursement Process in the Digital Age
Traditionally, people used to visit a bank and spend a lot of time enquiring about and applying for a loan. This is a lengthy process with a lot of manual intervention and no guarantee of securing the loan. Often, the purpose of applying for a loan is defeated because of the delay in disbursement of funds. However, online personal loans are much quicker. You can check your eligibility, find the terms and conditions, calculate your EMI, apply online, and get the funds.
Let us understand how banks process personal loans and get them disbursed quickly:
- Applicants start by submitting their data and documents such as name and contact details, PAN Card, Aadhaar Card, and more.
- The bank then verifies the details and processes them through an online e-KYC process to expedite the entire experience.
- Modern AI-based technology plays a critical role in assessing online personal loan applications. Based on the applicant’s credit score and CIBIL history, these algorithms generate output data depending largely on the applicant’s expected repayment capabilities.
- Once the loan is approved, the disbursed amount is credited to the bank account.
Also Read:Fintech will help us build a robust business platform and provide superior customer experience.
Process after Disbursement of Personal Loan
The process of disbursement of a loan consists of a few steps post the loan amount has been disbursed:
1. Loan Confirmation Letter:
After the loan has been disbursed, the bank sends you a confirmation letter. This is either a physical letter or an email mentioning all the details and terms and conditions, such as the amortisation schedule, EMIs, and more.
2. Loan Repayment:
A major task after the disbursement of a loan is the repayment. This has been made highly convenient in today’s age. National Automated Clearing House (NACH), implemented by the National Payments Corporation of India (NPCI), is a system adopted by banks to automate applicants’ need for interest/EMI repayments. IndusInd Bank provides this service as well.
With so many attractive benefits and smooth processes associated with personal loans, you should consider one if you require financial assistance. Explore IndusInd Bank’s personal loans and apply today!
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.
