What are Online Loans: A Definitive Guide

Jan 6, 2021

What are Online Loans: A Definitive Guide

Gone are the times when one used to climb up and down several banks with their gold jewelry and documents clutched close in a handbag, checking out different loan schemes. We live in an era of rapid digitization where everything from ordering food to consulting doctors has gone online. Similarly applying for loans too has been drastically simplified where one can get the desired loan amount credited to their account at just the click of a button with the advent of online loan application process.

Online loan application - An emerging trend

Online loan application or digital lending as it is savvily called is an emerging trend that is gaining traction since the onset of lockdown. Online loans came into existence ever since the advent of internet. However, very few lenders completely switched online while others still required the applicants to be physically present for evaluation and KYC process. Since the pandemic curbed heading out for non-essential things, people preferred to apply for instant loans, personal loans and gold loan online, from the comfort of their home. Be it individuals seeking instant loans to meet sudden medical expenses or SMEs seeking small loans online to restart their business, digital lending and online loan application ruled the list of fintech trends in 2020.

What are online loans?

Online loans are basically the method of borrowing money from lenders without ever having to set foot in a loan company or bank. The entire process right from applying for the loan to paying the installments and the loan closure is done online. More and more people prefer the online loan application method as opposed to traditional lenders as online lenders might have lower interest rates and minimal documentation requirements. The type of loans offered online largely are unsecured loans like personal loans, instant loans and credit card facilities. Though some banks are transitioning to online lending, most of them remain traditional requiring customers to be present in the bank for loan approval. Some NBFCs like Rupeek provide gold loan online, where the entire online loan application process is completed under 30 minutes from the comfort of your home.

How do online loans work?

Before applying for a loan, simply chart out a plan on what you need the loan for, how much loan amount you require, and your capability to repay the loan. These are pertinent as these are the first and foremost elements a lender will analyze while evaluating your online loan application. Here are some of the common and steps to follow while applying for loans online.

  • Do your basic research and find a suitable lender offering the best interest rates for your loan needs
  • Access their website and click the apply now button
  • Fill in personal details and other information needed regarding your loan requirements
  • Upload KYC documents like Aadhar, PAN card, income proof and other documents depending on the type of loan
  • Your application will be reviewed by the lender’s team for creditworthiness, repayment capability and identity verification
  • Your loan application will be approved or rejected depending on the set parameters
  • Once your loan has been approved, the amount will be credited to your bank account instantly or one business day, depending on the lender’s USP

Taking a gold loan online

There are many advantages of taking a gold loan when compared to other small loans online like personal and instant loans. Taking a gold loan is the most sought after and popular method of financing immediate personal needs as gold is considered an essential asset in Indian households. You just need to pledge some of the gold jewellery you have readily available at home and an amount equivalent to the gold depending on the per gram gold rate and purity will be sanctioned by the lender. Taking a gold loan online is an effortless, simple, and hugely time-saving process.

First, you may be wondering how a gold loan can be processed entirely online. It is possible with Rupeek, a gold loan company that became the first in India to offer doorstep solutions for gold loans. You simply have to log on to Rupeek Website and click the apply now button. You will have to fill out a form that asks for biodata and loan requirement details. Once the form is submitted, within minutes, a loan officer from Rupeek visits your home and does the gold evaluation process. Once the IDs are verified your loan amount is credited instantly in your bank account. Here are some of the top benefits of availing a gold loan online at Rupeek

  • Meets instant cash requirements with superfast loan disbursement
  • No exhaustive documentation like rent slips, salary slips are required
  • Only KYC completion is required
  • Gold evaluation is done at doorstep by highly qualified professionals
  • Loan amount is disbursed within 30 minutes of applying at Rupeek

Rupeek is an RBI-certified Non Banking Financial Institution offering gold loans and overdraft facilities at very low interest rates. We believe in supporting our customers financially for their instant cash needs by providing flexible repayment options along with high LTV. We provide a hassle-free online loan application experience for our customers. Apply now for your instant cash needs!

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