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  • Traditional Borrowing vs. Digital Credit: What Has Really Changed?

    Traditional Borrowing vs. Digital Credit: What Has Really Changed?

    In the bustling markets of India, where haggling is an art form and personal relationships often dictate financial decisions, the landscape of borrowing has significantly evolved. While the age-old tradition of approaching local moneylenders or visiting brick-and-mortar banks for loan persists, an exciting new player has entered the field: digital credit. In this fascinating clash of ‘Traditional Borrowing vs. Digital Credit’, we unravel the layers and explore what truly has changed.

    Understanding Traditional Borrowing

    For generations, Indians have navigated their financial needs by relying on traditional loan sources—local moneylenders, cooperative societies, and banks. These methods, deeply rooted in personal trust and community, have served as lifelines for many. However, the process, while familiar, often involves a cumbersome amount of paperwork and time-consuming procedures.

    The Process and Its Challenges

    Traditional borrowing usually requires individuals to physically visit a financial institution. This often includes filling out reams of paperwork, submitting tangible proofs of income and assets, and undergoing rigorous credit checks. The critical downside is the time taken—typically weeks—to process and approve a loan, leaving many in a temporary lurch during urgent needs.

    Moreover, the emotional labour involved in approaching a local moneylender, sometimes perceived as intimidating, cannot be ignored. These lenders might offer quicker loan disbursements but usually come with exorbitant interest rates or unfavourable terms.

    The Dawn of Digital Credit

    Enter the digital era. The advent of fintech and digital platforms has brought about an unprecedented transformation in how people access loans. With services like Online Personal Loan applications and digital lending platforms, credit is now more accessible than ever before. This paradigmic shift caters significantly to tech-savvy millennials and urban dwellers looking for quick, efficient financial solutions.

    Benefits of Online Personal Loans

    1. Speed and Efficiency: One of the greatest advantages of digital credit is its sheer swiftness. Applications for an Online Personal Loan can often be completed in minutes, with approvals following within hours. The use of advanced algorithms and AI-driven credit evaluations accelerates the process, making it ideal for emergencies. 2. Convenience: With everything online, gone are the days of sitting in long queues at banks. From application to disbursement, the entire process can be done from the comfort of one’s home via a smartphone or computer. 3. Transparency: Digital platforms offer clear, upfront information about interest rates, EMIs, and terms, empowering borrowers with the knowledge to make informed decisions. There are fewer hidden charges, and borrowers can easily compare loan products from multiple providers. 4. Inclusivity: These platforms often utilise innovative ways to assess creditworthiness, such as social media behaviour analysis or alternative credit scoring. This inclusivity has brought credit access to previously underserved segments.

    Comparing Traditional and Digital: A Statistical Insight

    To illustrate the shift, a recent report by the Reserve Bank of India showed a surge in digital transactions, with digital loans accounting for an increasing percentage of overall retail lending. In 2022 alone, the number of digital loan applications exceeded traditional bank loan applications by over 60%. 
    A survey on consumer preferences indicated that 70% of urban borrowers prefer Online Personal Loans over traditional methods, citing convenience and speed as primary factors. However, it’s noteworthy that traditional borrowing still holds sway in rural areas, where digital literacy and internet penetration remain challenges.

    What Has Really Changed?

    Trust vs Convenience

    While traditional borrowing heavily leans on trust and existing relationships, digital credit thrives on convenience and speed. Urbanisation, rising smartphone penetration, and government initiatives to improve digital infrastructure bolster this trend towards digital credit.

    Accessibility and Financial Inclusion

    One of the most significant changes is the enhanced financial inclusion brought about by digital credit. More individuals, especially younger generations and those residing in urban areas, now have ready access to loans. The digital nature has also paves the way for micro-loans, aiding small entrepreneurs in scaling their ventures.

    Innovation in Credit Assessment

    Digital lenders utilise big data analytics, AI, and machine learning to predict creditworthiness, which allows for a broader spectrum of borrowers to qualify for loans. Traditional banks, conversely, still rely heavily on CIBIL scores, often alienating those without conventional credit histories.

    The Human Element: Are We Losing It?

    An interesting dilemma observed in the shift towards digital credit is the loss of the ‘human touch.’ In traditional settings, the interaction with a bank manager or moneylender offered a personal rapport and understanding of individual circumstances, which digital interfaces lack. This personal connection can sometimes make a crucial difference, especially in renegotiating terms during financial hardships.

    Challenges in the Digital Space

    Despite its advantages, digital lending is not without challenges:

    1. Data Privacy Concerns: With personal data now being crucial to credit assessment, concerns around data privacy and security are at the forefront. There is always a risk of data misuse or breaches. 

    2. Digital Literacy and Access: While urban regions embrace digital credit swiftly, rural populations lag due to limited access to internet services and digital education. 

    3. Overborrowing Risks: The ease of obtaining an Online Personal Loan could lead some individuals to accumulate debt beyond manageable levels, highlighting the need for careful financial planning and education.

    The Future of Borrowing in India

    The future of borrowing in India is undeniably digital, but not without retaining the core values that traditional borrowing emphasised. The ideal scenario would perhaps be a seamless integration of the two—where digital platforms incorporate human elements, offering personalisation, flexibility, and compassionate customer service. 
    Digital lenders are beginning to take note, introducing AI-driven customer service bots that try to simulate human interaction, and offering hybrid models with physical outposts for those who prefer face-to-face interaction.

    Conclusion: Charting Your Financial Path

    In the grand scheme of things, whether one opts for a traditional loan or an Online Personal Loan depends largely on individual circumstances, preferences, and needs. It’s essential, however, to remain informed, aware, and prudent in any borrowing decision.

    The landscape of borrowing will continue to evolve as technological advancements propel us into newer dimensions of digital credit. As borrowers, staying adaptable and embracing change while safeguarding one’s financial interests will be key.

    Reflecting on this transformation invites us to ask: Are we poised to embrace a digital future, or should we hold on to the trusted traditions of the past? The choice ultimately lies in striking a balance that best suits our financial journeys.

  • Aspire, Acquire, Achieve: A Woman’s Guide to Obtaining Personal Loans for Professional and Personal Development

    Aspire, Acquire, Achieve: A Woman’s Guide to Obtaining Personal Loans for Professional and Personal Development

    Women have made enormous strides in understanding their money, investing, and accomplishing their long-term and short-term objectives. Many women nowadays are becoming more autonomous in their financial decisions, no longer relying only on male family members for advice or control.

    Modern financial institutions, who have made significant efforts to enable women to accomplish their ambitions, have played a major role in igniting this. In addition, a recent CRIF Highmark analysis indicates that women are borrowing significantly more in the personal loan market, with the number of active loans rising by as much as 52%. Having said that, it’s evident that more and more women are using different kinds of personal loans to assist them reach their objectives.

    Even while women are assuming more and more responsibility for their financial lives, having access to credit is still essential to fulfilling both personal and professional goals. Despite great progress toward gender equality, women continue to encounter obstacles when trying to obtain credit, which impedes their ability to advance both personally and professionally.

    Challenges faced by women while accessing credit

    According to a recent survey, Indian women are 10% more likely than males to make their EMI payments on time, demonstrating their responsible attitude to managing their debt and making sound financial decisions. Women are not able to obtain personal loans, even when they manage their funds quite responsibly and cautiously.

    A major contributing factor in this is ignorance. There are several ways to get loans with quick disbursement alternatives accessible nowadays. Still, a lot of individuals don’t know about it, and some would rather borrow money from a formal organization, where the application process is more involved. While there has been progress in this area, much more needs to be done to inform female consumers about the advantages of choosing digital loans and to increase awareness. Modern women need short-term ticket loans in order to achieve their objectives, which are typically not easily fulfilled through official financial institutions. Examples of these goals include travel and upskilling in order to advance in their careers.

    How women can access personal loans and use it for their personal and professional growth

    Research online lenders and compare interest rates:

    Women can begin by looking for instant cash loan apps on the internet with clear terms and genuine user reviews. Furthermore, ladies may search for internet lending sites that provide immediate personal loans with only a few clicks. This lowers the need for formal documentation and processes. Use the comparison tools provided by different platforms to examine interest rates, loan amounts, payback periods, and related charges. Select a loan that suits your financial requirements and aspirations. When applying for a loan, keep in mind that applying to many lenders may have a negative influence on your credit score.

    Utilise Funds Wisely:

    Allocate loan funds carefully to meet your personal and professional development goals. Borrowing what you need is a prudent financial strategy. It keeps you from incurring unneeded debt and allows you to devote resources to your ambitions. By being attentive of your borrowing and prioritizing your requirements, you may better align your financial decisions with your personal and professional growth objectives. This technique promotes financial discipline and allows you to make the most use of your existing resources.

    Budget for Repayment:

    Creating a repayment plan that falls within the budgetary limits is critical. To assure debt repayment on time, one must make it a practice to set away a percentage of their monthly income. Automated payments can help you remain on track and avoid late penalties.

    Monitor Credit Score:

    Regularly checking your credit score helps you to keep track of your financial performance and spot potential difficulties. Responsible personal loan management may have a long-term positive influence on creditworthiness, opening the door to future financial prospects.

    Conclusion

    According to a recent survey, credit demand among new-to-credit (NTC) women consumers has increased significantly, more than tripling over the previous five years from 18% in 2019 to 40% by 2023. This overwhelming data demonstrates the critical role that access to personal loans plays in allowing women to achieve their career and personal goals. Financial institutions must adjust their goods and services to meet the specific demands of this group. Financial institutions may empower women by providing tailored answers to their individual concerns.

    By eliminating structural hurdles, implementing gender-sensitive policies, and providing tailored financial solutions, we can create a more inclusive and equitable lending ecosystem that enables women to aspire, acquire, and realize their goals. As we celebrate women’s achievements, it is critical that we address the problems they encounter in accessing credit and apply for personal loans appropriately. By doing so, women may increase their financial liberty and pave the road for a better future. 

  • Your Loan, Your Reward: Get Rs 500 Amazon Voucher with Hero FinCorp’s Instant Personal Loan Approval

    Your Loan, Your Reward: Get Rs 500 Amazon Voucher with Hero FinCorp’s Instant Personal Loan Approval

    Whenever you need funding to handle an emergency, fulfil a dream, or make a big-ticket expense, an instant Personal Loan is a boon in many ways. Its major advantages include instant approval, no collateral requirement, and flexible repayment terms. Now, Hero FinCorp makes it even more beneficial by offering an Amazon voucher worth Rs 500 as a reward with approval. So, you get the required funding and an additional perk with the loan you receive.

    Reasons Why Hero FinCorp is the Best Personal Loan Provider

    Hero FinCorp is one of India’s most preferred Personal Loan providers for many reasons. Some of them include the following:

    • Loan Amount of up to Rs 3 Lakh: An instant loan amount of up to Rs 3 Lakh is sufficient to cover most emergency situations and big-ticket expenses.
    • No Usage Restrictions: Hero FinCorp does not impose any usage restrictions on the fund usage. That means you can use the loan amount for any planned or unplanned expense, such as last-minute wedding expenses, higher education, foreign travel, debt consolidation, medical emergency, etc.
    • Attractive Interest Rates: The Personal Loan interest rates offered by Hero FinCorp are quite attractive. Applicants can secure the most competitive interest rates based on their income, debt-to-income (DTI) ratio, repayment capacity, and credit history.
    • No Collateral Requirement: Hero FinCorp Personal Loans are unsecured, which means you don’t need to pledge any security, collateral, or guarantor to apply.
    • 100% Digital Loan Procedure: When seeking a Personal Loan from Hero FinCorp, you don’t need to physically visit a the office or submit paper documents. You can apply through the NBFC’s website or loan app.    
    • Simple Eligibility Criteria: Hero FinCorp has simple eligibility criteria for an Instant Personal Loan. You can qualify for a loan if you fall into the 21-58 age bracket, have minimum work experience of six months as a salaried employee or two years as self-employed professional, and earn at least Rs 15,000 monthly.
    • No Paperwork: The Personal Loan application process at Hero FinCorp does not involve any physical paperwork. You can upload scanned copies of the required documents online and get instant approval.
    • Quick Approval: With no collateral, documentation, or branch visits, Hero FinCorp processes loan applications in real time and sanctions instant approvals. This facility makes Hero FinCorp the most reliable funding provider for emergencies.
    • Flexible Repayment: Using an online EMI calculator, you can choose a repayment tenure of up to 36 months according to your repayment capacity. The longer the tenure, the smaller the EMIs.
    • Amazon Voucher Worth Rs500: Hero FinCorp makes the deal even more attractive by offering an Amazon voucher worth Rs 500 with loan approval. Whatever you borrow the loan for, you can use the Amazon voucher to buy yourself a small gift and feel good.

    What Can You Use a Personal Loan For?

    An instant Personal Loan from Hero FinCorp has no usage restrictions. That means you can use the loan amount for any legal purpose. Some common uses of a Personal Loan include the following:

    • Wedding-related expenses, including venue booking, catering, photography, wedding outfit, gifts, invites, or honeymoon.
    • Travel expenses, including airfare, visa fees, hotel accommodation, sightseeing, adventure activities, shopping, etc.
    • Home renovation expenses, including material, labour, transportation, contractors, interior decorators, etc.
    • Education expenses, including student visas, travel tickets, accommodation, study material, equipment, etc.
    • Medical expenses, including hospitalisation, surgery, medical equipment, physiotherapy, medicines, etc., and elective procedures that health insurance does not cover, like cosmetic surgery, pregnancy, IVF treatment, dental procedures, etc.

    You may also use a Personal Loan for debt consolidation, paying credit card bills, setting up a business, or buying an expensive gadget. Moreover, building a credit history with regular EMI payments is a good credit product. Improving your credit score makes you eligible for bigger loans in the future at better interest rates.

    Steps to Apply for an Instant Personal Loan at Hero FinCorp

    If you plan to apply for an instant Personal Loan at Hero FinCorp,download the loan app now and follow the stepwise procedure to qualify.  Here are the steps to follow:

    • Visit the Hero FinCorp loan app or website.
    • Go to the Personal Loan section and click ‘Apply Now’.
    • Fill out an online application form.
    • Enter a few personal and professional details.
    • Scan and upload the necessary documents.
    • Wait for the verification process to complete.
    • Accept the loan offer to get disbursal in a few hours.

    Remember to check your eligibility for a Personal Loan and use an EMI calculator to choose a suitable repayment plan.

  • Tata Capital unveils new campaign promoting its offerings

    Tata Capital unveils new campaign promoting its offerings

    Mumbai: Tata Capital has unveiled its integrated marketing campaign “Palak jhapkao, loan paao!” to promote its various loan offerings. The campaign has a series of short films themed around the digital, seamless, and quick loans offered by Tata Capital. The campaign went live on 9 November.

    Designed by VISCOMM, the integrated marketing campaign will run across television, social media, and other digital media platforms.

    The “Palak jhapkao, loan paao!” campaign is based on the insight of today’s fast-paced world, ever-evolving customer needs, and the expectation that these needs be met spontaneously and seamlessly. Customers can quickly obtain personal loans, home loans, business loans, and vehicle loans from Tata Capital, as the name implies. These loans are enabled on all channels and can be accessed in a paperless format in minutes.

    In “Palak jhapkao, loan paao!” series of advertisements, each film showcases a humorous situation where the protagonist is faced with a situation which requires a quick solution. Each film portrays how the protagonists’ needs are met within blink of an eye by availing Tata Capital’s quick loans offering a hassle free and seamless experience.

    Speaking about the campaign, Tata Capital chief digital and marketing officer Abonty Banerjee said, “Tata Capital’s latest campaign aims to resonate with our customers’ ever-increasing needs for immediate solutions. Quick loans give our customers the opportunity to fulfil their needs for loans simply and swiftly. This campaign reinforces our customers’ belief that they can always #CountOnUs to fulfil their aspirations.”

    Talking about the creative side, VISCOMM director Ritika Grover said, “We live in a time of instant and urgent! The campaign line “Palak Jhapkao, Loan Pao” captures the spirit of quick loans offered by Tata Capital. In the films, the protagonist’s real and urgent needs combined with the play of slow motion versus real-time action is what we hope makes them attention grabbing. Our young team led by director Shachi Malhotra explored techniques to make the films creatively and visually unique.”

  • MobiKwik to now offer instant loan in 90 secs

    MobiKwik to now offer instant loan in 90 secs

    MUMBAI: Indian digital financial services platform, MobiKwik has launched its breakthrough product, Boost, that offers instant loan approval and disbursal to MobiKwik users.

    This is the first-of-its-kind of credit disbursal product, wherein loans of up to Rs 60,000 are sanctioned as well as disbursed in a matter of 90 seconds.

    MobiKwik has partnered with a number of NBFCs to offer this service to its users. MobiKwik is the first wallet player to disburse loan amount in the user’s mobile wallet.

    Boost offers loans without any hassles of submission of paperwork or collaterals. The loan sanction decision will be taken in 30 seconds, on the basis of an innovative risk scoring model called ‘Mobiscore’, developed by MobiKwik.

    The real time underwriting has been possible only because of artificial intelligence and data analytics capabilities used in the entire loan journey.

    Users can apply for loans ranging from Rs 5,000 up to Rs 60,000 through the MobiKwik app. MobiKwik users who avail loans via the app will have the option to transfer their loan amount to their bank account. The amount credited can be utilised by the app users across a range of use cases including urgent purchases, marriage expenses, travel plans, hotel bookings, medical emergency, as well as payments to offline and online merchants.

    To avail the loan facility, users have to select Boost on the MobiKwik App, activate Boost for instant loan, insert PAN and other KYC details to view loan offer and accept loan offer to get instant disbursal.

    MobiKwik co-founder and director Upasana Taku says, “Our objective is to provide easy access to credit to each and every Indian, irrespective of his location. This is first of its kind of product that will totally revolutionise the way India avails credit. Our path-breaking product will enable Indians, located anywhere in India, to avail instant loans, whenever they require, within 90 seconds, via the MobiKwik app. In the initial months of piloting the offering, we have already crossed a portfolio of 100 thousand loans. We will be rolling out new products in the lending portfolio so as to cater to diverse credit requirements of customers. We are confident that lending will be a game changer and will establish us as clear leaders in the digital financial services domain in the country.”

    The loan amount is payable in easy instalments of six and nine months. They can either payback from the MobiKwik app or can enable MobiKwik’s partner to auto-debit the monthly EMI from their bank account. MobiKwik users are required to update their KYC with PAN card and other KYC details to avail the loan benefit.