How to Apply for a Loan Using Just Your Smartphone?

You want a loan while waiting for your coffee in the queue? Done! Today, you can apply for a loan anytime and anywhere with a simple smartphone. Here are the steps you need to follow to borrow money from a digital loan company using just your smartphone:

Choose a Trusted Lender

First, choose your desired lending platform. Many banks, Non-Banking Financial Companies (NBFCs), and digital lending apps lend money through digital loan apps. Take a few minutes to read online reviews, compare interest rates, and find the one that feels trustworthy to avoid fraudulent activities. Also, double-check the name.

Once you have chosen your lender, download the app. After you have installed the app, allow the required permissions (such as camera, storage, and location) to scan your documents and verify your identity.

Register/Sign in

Register by entering your mobile number, name, and email ID. Sometimes, you must enter your PAN Card number at this stage. You might receive OTPs on your phone or email ID for verification. Enter them to proceed.

Fill in the details.

Share personal information with the app when applying, and possibly, you will have to provide the following:

• Your age

• Your occupation

• Monthly income

• Address and city

• Reason behind borrowing money

• Bank details for disbursing the loan

It is better to be honest with your answers, as the apps generally use this data to decide how much money they can lend you and what interest rate they can offer.

Complete Your KYC

You must fill out your KYC, and remember, it is the most crucial part of the process. You need to upload your documents. The app may ask you to submit your PAN and Aadhar Card as proof of your identity and address. Moreover, you may have to take a photo that matches your photo ID and upload an image of your salary slip or bank statement to verify your declared income. You can use your phone’s camera to take clear photos and directly upload them. Before uploading, check if any document is blurry or cut off to avoid your loan getting rejected in the future.

Check For Offers

After you have submitted your details and all documents, the app will check your credit score and income, and based on that, it will provide you with loan offers. Before applying, check which amount and interest rate suit your needs and income. You can use a loan calculator in the app to determine your monthly EMI rate. 

Accept the terms and apply.

Once you are happy with the loan offer, check the terms and conditions carefully, especially the interest rate, processing fee, late payment charges, and total amount to repay. When everything looks okay, click “Accept” and “Apply.” Some may ask you to complete an e-mandate for a monthly automatic EMI deduction.

Wait for Approval and Disbursement

While some apps give you quick approval, others may take a few hours to verify your details. After receiving the approval of your digital loan application, you will have a direct transfer of your loan amount to your bank account. You will also get an email with your loan agreement and repayment schedule.

Thus, borrowing money using your smartphone is fast, easy, and paperless if you have a reliable app and a healthy credit score. But never borrow without a repayment plan in mind.

Your smartphone may give you convenience, but smart choices come from you. So, next time you need an instant loan, remember, it’s just a few taps away!