What is a Paperless Personal Loan Application Process?
Personal loan is one of the most popular loans in Singapore. A personal loan is of lower amount compared to a mortgage loan and people usually take it out to pay for a wide variety of things, including travels, weddings, electronics, debt consolidation and so forth.
Paperless Loan Applications
Paperless personal loan application process is similar to the usual personal loan application but much faster in execution and processing.
With paperless personal loan application, loan-seekers only need to apply for loans via online portals. All documents and relevant proofs needs to be uploaded along with the application. The processing time for loans come down to a fraction to what is required during a physical loan application process.
Benefits of Paperless Application Process for Personal Loans
With the onslaught of digitization, it has become imperative to adapt to the digital world. Slowly but surely the banks are following suit as they realise the benefits of paperless personal applications for both, the lender and the customer.
Some benefits of paperless personal loan application process are:
- Reduced processing time: People often take personal loans for urgent needs. This means time is of the essence when it comes to personal loans. Paperless application process reduces the time required in vetting the documents and hence can be approved quickly.
- Easy record-keeping: With paperless loan process, there is no need for manual record-keeping of the application as all records are automatically updated.
- Transparent decision making process: There’s no human involvement in the decision making process with paperless loan applications. Customer information is fed directly into the bank’s credit scoring engine, where accurate and consistent loan decisions are made.
- Greater convenience: The whole process is a great convenience for the customers as they can apply for personal loans sitting at their homes and without requiring to visit an actual bank.
- Higher security: With the paperless process, the data which is stored is encrypted first. This means a customer’s personal information is more secure than in an application involving papers, which anyone can access.
- Instant notifications: Paperless loan application process being digitised from the start to finish means that the system can send out periodical updates regarding the status of the loan.
- Environmental friendly: With less documents being printed out, more and more paper is saved making it an environment friendly option.
Banks/Institutions Offering Paperless Application Process
While most banks let you apply for a loan online via their website, very few have the entire process go paperless. You still have to get in touch with a customer care executive at some point of time, or might be asked to submit your documents physically with usual online personal loan application.
With the paperless application process, all these devices are eliminated.
Some banks that accept paperless personal loan applications are:
- DBS Bank - DBS was the pioneer in paperless loan application process in Singapore. In August 2015, the bank announced its decision to embrace paperless loan applications for SMEs for 11 different types of loan products.
- UOB: Existing UOB Credit Card or CashPlus customers can apply online at their website for a paperless loan process.
- Standard Chartered Bank: Standard Chartered Bank also allows its existing and new customers to apply for their CashOne Personal Loan plan through their website.
- Citibank: The paperless personal loan application process in Citibank is not yet entirely automated. But you can still apply online, submit CPF statement via a CPF weblink and send the rest of the documents via email.
Step-by-Step Guide to the Paperless Application Process
The process of applying for a personal loan becomes much less convoluted once it goes paperless.
- Find banks that accept paperless personal loan applications.
- Compare and choose a loan to apply for.
- Find out what are all the documents required and keep the digital copies of all such documents handy.
- Click on the ‘Apply Now’ button of the chosen bank’s website.
- A form will open seeking details like the amount, tenure of loan being sought, personal details and employment details.
- Once all the necessary fields are filled, the form will prompt you to upload the required documents.
- The moment the application is submitted, the information is channeled into the bank’s credit scoring engine, where all the data is processed to arrive at a decision.
- The applicant is informed of the status within 24 hours.