Paperless loans are the credit facility where the borrower gets the funding without paperwork. As there is no paperwork involved, the borrower saves a lot of time which makes the loan approval process faster. The entire loan process is paperless and all the important data is assembled in the online database. In a nutshell, no hard copies of the business loan documents are submitted to the lender. But only the soft copies of the documents are uploaded online.
Reason Behind Paperless Loans
The advent of digitization has resulted in the rise in time spent over the internet every day by users. Adding to this, the Indian Government as well actioned demonetization in 2016, and promoted digitization which encouraged paperless transactions. The paperless loan is one of the effects of the mentioned components. Essentially, digitization in the financial market is the main reason due to which paperless loans have come into existence.
What are the Benefits of Paperless Loans?
Paperless loan is essentially an instant loan as the loan is processed and approved faster. The following are the benefits of the instant loan without documents:
One of the major benefits of a business loan without documents is its unsecured nature. Paperless loans are unsecured business loans. The borrower is not required to pledge any security against the loan amount. The collateral-free nature of the loan makes it more accessible by the business owners who are in need of funding but could not avail due to unavailability of security.
Loans without documents are not the only result of digitization. It has also made the verification of the documentation faster. This is applicable to the online business loan as they are totally digitized. Once the loan documents are uploaded, they can be verified online through various government portals.
An online instant business loan is approved faster as compared to offline loans. Many lenders have computer software that approves/disapproves the application within a few minutes of application submission. And as soon as the application is approved by the system, the loan lender processes it further. Upon approval, the borrower is informed via an e-mail or message and the amount is credited to his account within few working days.
Can be used for Different Business Purpose
All the different loan products offered by the lenders are only for a specific purpose. Such as a home loan can only be used for the purchase or construction of a house. Nevertheless, a business loan can be used for any business requirement, from marketing purpose to capital investment. The only limitation is that the funds should be used for business purpose only.
The availability of online and paperless loans has created a great and notable difference in the financial market. The loan approval process has become easier, faster, and convenient for the borrowers.
Additionally, you can also register your business for free at the Connect App by ZipLoan to build business network. Through the e-marketplace, you can create a business profile, list your products/services, find business, discover new business opportunities, and build connections. Want to read the latest posts on social media? Then follow us on Facebook, Twitter, and LinkedIn!