The honourable Prime Minister of India Mr. Narendra Modi has launched digital initiatives from time to time. Over the last few years, a kind of digital revolution has happened in India. The citizens have become more aware of the digital modes of payments which have improved the standard of living. Today through this article we are going to tell you about the e-RUPI digital payment platform. This platform is an instrument through which its users can make digital payments. e-RUPI is a cashless and contactless instrument for digital payments. It acts as an e-voucher based on a QR code or SMS string, which is delivered to the mobile phones of the beneficiaries.

Key Highlights Of e-RUPI Digital Payment

Objective Of e-RUPI Digital Payment

The main objective of the e-RUPI digital payment platform is to provide a cashless and contactless payment system so that citizens can make digital payments without any kind of difficulty. With the help of this payment platform, users can make payments in a secure manner. This payment platform uses QR code or SMS string-based e-voucher which will be delivered to the mobile of the beneficiary. e-RUPI digital payment platform ensures the timely payment of the services without the involvement of an intermediary. Users are not required to carry any cards or digital payment app or have internet banking access in order to make payments which will make the payment process simple and secure.

Uses Of e-RUPI Digital Payment Platform

With the help of the e-RUPI platform, the payment of the service provider will be made only after the completion of a transaction. This payment platform will be prepaid in nature which does not require any kind of intermediary to make payment of the service provider.Other than that, this platform can also be used for delivering services under schemes that are meant for providing drugs and nutritional support like mother and child welfare scheme, TB eradication program, drug and diagnostic under a scheme like Ayushmann Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidies, etc.The private sector can also leverage these digital vouchers for their employee welfare and corporate social responsibility programmes. Leak-proof revolutionary delivery of welfare services will be ensured through this initiative.

Benefits Of e-RUPI

This Payment processes is contactless. Only have to follow a two-step redemption process need to have any kind of digital payment app or bank account consumer is not required to share his or her personal details in order to maintain privacy. The voucher is prepaid hence the payment process is completely secure voucher can be redeemed in few steps hospitals are not required to handle cash hence hassle-free and contactless payments can be ensured voucher is authorized through a verification code which makes the payment process easy and secure. The well-being of employees can be enabled by the corporate voucher distribution quick, safe, and contactless issuer can track the voucher redemption leads to cost reduction because the transactions are digital and don’t require any physical issuance.

Voucher Issuing Procedure

The e-RUPI digital payment system has been developed by the National Payment Corporation of India on its UPI platform. The national payment corporation of India has boarded banks that will be the issuing authority of the voucher. The corporate or government agency is required to approach the partner bank (private and public sector lenders) along with the details of the specific person and purpose for which the payment is required to be made. The identification of beneficiaries will be done by using their mobile number voucher allocated by the bank. This platform will be our revolutionary digital initiative which will improve the standard of living and make the procedure of payment simple.

Taking loans has become as regular as going shopping for a new wardrobe, sometimes without even you realizing it. Simple phenomena of opting for postpaid bills on Ola, or your pay later credit stores are in one way or the other your indulgence in the entire system. The next purchase on EMI via Amazon or Flipkart, or opting for postpaid mobile balances, you are in the constant loop of taking and paying off loans. Having made you familiar with the concept, in this write up, we will talk about a rather severe and advanced theoretical and practical application of taking loans.

Categorically, loans today are divided into two major types – secured loans and unsecured loans. To simply differentiate the two with a one-liner, a secured loan requires you to put any of your valuable assets as collateral while taking the loan, while there is no such requirement while opting for an unsecured loan.

While it may sound like an easy point of differentiation and a deal-breaker of your understanding of the subject, the nitty-gritty in both scenarios makes a stark difference. There is a lot more ground to be covered on the subject – the difference between secured and unsecured loans, before making a final decision of going ahead with your selection.

What is a secured loan? 

In layman’s language, a secured loan is credit given to you by a lender who in turn holds back one of your valuable assets as collateral that can be used for a down payment in case of payment default caused from your end. When you take a secured loan, the sum acquired is usually high and needs specific backing up for release by the lender. Hence, assets like your house, your gold, shares, or mutual fund, etc., are taken under the possession of the bank/lender to use as a sense of security for the amount given for your immediate benefit.

Advantages of Secured loan

• Greater value for money
• A higher range of credit
• Lower rate of interest
• Longer pay-off duration
• Credibility for the lender
• Resourceful in case of higher sum requirement

Types of Secured loan

• Mortgage loan:

A house loan is taken against your newly purchased property which can be both personal or for your business. The lease of the purchased land is not entirely released in your name until the entire payment has been made to the lender, in this case, the bank. An approximate 20% of the total value has to be paid right then to get this loan, and the rest of the amount is distributed over a period of time.

• Loan on Vehicles:

While purchasing any automobile such as a car or a two-wheeler, you can opt for a secured loan and instead of exhausting your savings in one go, pay the smaller amount in a defined duration and on the final pay off, claim the full ownership of the papers of the vehicle.

• Loan against gold:

Since gold is an elite and premium possession in our society, your acquired gold is often used as collateral at the time of applying for the loan, making you eligible for a certain percentage of credit of the overall value of the gold deposited.

• Loan against shares and funds:

On the lines of the loan against gold, your mutual funds work as a tool of your secure investment that can be held as an asset for collateral when opting for a secured loan. As for the shares and the funds, when put as collaterals, the financial organizations measure the creditable value, keeping in mind the market scales of those shares and also the predictable ups and downs in the value. An approx of 60-70% of the value of these shares can be accepted upon as the credit value for your loan.

• Loan against life insurance:

In some cases, your life insurance policy can also be used to back your secured loan up, with the creditable value being a percentage of the sum insured in the policy.

What is an unsecured loan?

Unsecured loans don’t include any insurance from the borrower’s end. Here, the solitary assurance that the lender has that you will reimburse the obligation is your reliability and your assertion. Hence, unsecured loans are viewed as a greater danger for loan specialists. You’ll, by and large, need a solid record as a consumer and a higher credit score to fit the bill for an unsecured loan.

These loans regularly accompany higher interest rates naturally, keeping the above stated in mind. Think of the contrast between the regular home loan rate and what you may pay yearly on a Visa. Balancing the portion of the additional risk taken by the lender with the exorbitant interest obligation is more challenging to pay off.

Advantages of Unsecured loans

• No assets required
• The application process is much quicker
• Suitable for ongoing expenses of lower order.

Types of Unsecured loan

• Credit Cards:

The most commonly used unsecured loans are credit cards. Today, almost all working individuals prefer to have one at their disposal. It is a revolving loan that carries a specific spend limit putting a bracket on the amount that can be withdrawn at one given period of time, the duly reimbursements of which largely hamper your credit score in the longer run. It provides the flexibility to manage more straightforward expenses and smoothly sail through the month.

• Student Loans:

Available through both – the Department of Education and private financial giants, a student loan is again a common category that takes off an immediate burden of the education of a child, which can then be repaid slowly. This, although an unsecured loan, has tax rebate benefits as well.

• Term Loan:

A term loan or a personal loan will demand your signatures at the bottom of the sheet and will make a lump sum amount available at your disposal for a short term duration. This category of loans generally has a fixed rate of interest.

To sum up, the above-stated pointers, let’s map out the difference between secured and unsecured loan.

Both secured loan and unsecured loan carry their shares of pros and cons that can be profoundly used for your better quality of life if applied for with a well-thought plan and usability. Together, they’re the keys to homeownership, vehicle acquisitions, readily available credit card usage, financing your schooling, and helping you balance out your expenses adequately. However, always make sure to go ahead with your loan plan only when you ‘have’ to and not just for an added ‘benefit’. These decisions play a significant role in your financial credibility as an individual and hence need critical balancing of scales before opted for.

FAQs

✅ What is my eligibility criteria for an unsecured loan and secured loan?

SECURED LOAN:

• You need to be 18+
• You must be a resident of India
• Most financial firms put a limit of an annual income of up to INR 3 lakhs
• For business loans, the business must be running and show a profit for three consecutive years.
• The assets must be of a greater value than the applied amount.

UNSECURED LOAN

• The age bracket of 21-68 years
• You need to be employed/in business for 2-5 years
• Minimum monthly income to be above INR 5000/-
• CIBIL score needs to above 750

✅ What documents do I need for opting for secured loans?

Common documents needed:

• ID Proof
• Age Proof
• Income Proof
• Original Asset documents
• Bank statements of the previous six months

✅ Can I apply for both the loans at the same duration of time?

Mostly it is not advised to opt for two loans at a single point in time, and it also causes troubles while presenting the documents to the lender.

Instant Loan Without Documents – A Perfect Guide

The need for cash may arise anytime. While we all save a penny or two for the future, sometimes it might just not be enough. Personal loans come up as the ideal solution at such times. Available without collateral and no end-use clause, personal loans can help you sail through the cash crunch moments easily. The instant loans without documents further add to convenience as one can avail the loan without getting into the cumbersome and lengthy process of loan documentation.

What is an Instant Loan?

Instant loans are primarily pre-approved loans that do not require much documentation, as is the case with traditional bank loans. They are approved really quickly without any collateral or guarantor. They are typically applied online and therefore require no written application or subsequent paperwork. Applicants who meet the eligibility conditions receive the loan credit in their accounts within minutes, hence the name instant loan or a quick loan.

Benefits of Instant Loan without Documents

Unlike earlier times when availing of a loan was troublesome, an instant loan without documents has changed the entire scenario. In addition to the No-Documentation clause, other features and benefits that attract borrowers are:

• Short Term Loan: An instant loan without documents are short term loans that are typically repaid in flexible tenures, maximum up to 5 years.
• Low Principal Value: Instant loans are low principal value loans. One can borrow a principal amount of up to Rs. 5 lakh.
• Convenient: The process to avail of an instant loan without documents online is fast and easy.
• Quick Disbursal: Borrower can get an instant cash loan in 1 hour without documents.
• Completely Digital: The process to avail of an instant loan without documents is completely digital and can be applied from anywhere and anytime.
• Paperless: An instant loan without documents is a paperless loan and requires no loan application and supporting documents.
• Hassle-free: Applying for an instant loan without documents online cuts down on the hassles involved in visiting the lender personally to complete the loan application process.
• No collateral: An instant loan without documents is a type of personal loan. It is an unsecured loan and therefore does not require collateral or guarantor.
• No end-use clause: The proceeds of an instant loan can be used to fund any event. The borrower does not need to submit an end-use certificate.

Different Ways To Avail Instant Personal Loan Without Documents In India?

It pays to have a good track. Documents validating identity, address and income are vital for all loan credits. Without these checks, the chances of loan defaults may increase manifold. However, if the borrower’s credit history and financial track record are good, one can easily avail of an instant loan without documents.

The different ways to avail of an instant personal loan without documents in India are:

Choose your existing banker

Loyalty is preferred in every domain. Customers who have a good and long relationship with their bank are the preferred ones for an instant personal loan without documents. Furthermore, as the KYC formalities are already complete with the banker, one can receive an instant cash loan in 1 hour without documents.

Choose from pre-approved offers 

Pre-approved offers are usually floated for existing customers who meet the eligibility conditions set by the lender. These offers are made depending upon your credit score and financial profile. So, taking advantage of these pre-approved loan offers will save you from submitting additional documents or initiating the loan process from scratch.

Choose the lender who offers instant loan approvals 

Some lending institutions promise instant loan approvals. They ask for minimal documentation like PAN cards, salary slips and credit scores and approve loans quickly. In case a new lender is offering better loan terms than your existing banker, it’s time to change.

Maintain a high credit score

By paying bills and EMIs on time, the customer enjoys a near guarantee to avail another loan that too at favourable terms and conditions. Personal loans are unsecured loans. Thus, lending institutions rely heavily on the borrower’s credit score. A high credit score depicts the borrower’s responsible financial behaviour and increases the chances of getting an instant cash loan in 1 hour without documents.

How to Apply Instant Loan without Documents?

The benefits of availing of an instant personal loan are far too many. One only has to follow a well-structured process to enjoy these benefits.

To begin the process of loan application, one has to decide the lender beforehand. In addition to prominent banks and lending institutions, online digital wallets like LazyPay, Credy, ZestMoney are also into the business of offering an instant loan without documents.

Borrowers must be aware of the features and rate of interest applicable to the selected instant loan lender.

Here are five simple steps for applying for an instant loan without documents:

Step 1: Download App:

As the name suggests, instant loans are approved instantly. This is possible only through technological advancements. Thus, the process of instant loan application primarily operates through Apps. Download the application of the lender from which you plan to take a loan. The application is to be downloaded on the Smartphone via Google PlayStore for Android phones and AppStore for iOS phones.

Step 2: Setup App:

To install the App on the Smartphone, use the App navigation process. Registration on online digital wallets is completed using social media profiles.

Step 3: Set Credit Limit:

Once the App setup is complete, it will ask you to enter the instant loan amount you wish to take.

Step 4: Set Loan Tenure:

Select the loan period for which you wish to take the loan. The EMI corresponding to the entered figures will appear on the screen. Depending upon your repayment capacity, you can make amendments to the loan term or principal amount to reach the desired EMI value.

Step 5: Upload Documents: 

For existing bank customers who have a good credit score, the loan will be credited into the account. Others will be required to upload the images of the required documents like PAN card and latest salary slip through the online App itself. If eligibility conditions are met, the loan will be disbursed into the savings bank account linked to the App or App wallet itself within minutes.

What is the Eligibility Criteria for Instant Loan in India?

A few eligibility conditions are a must to avail of an instant loan without documents in India.   These include:

For Lending From Banks and Non-Banking Financial Companies

• The age of the borrower must be between 18 and 65 years
• The borrower must be an Indian citizen
• They can be salaried or self-employed
• The borrower must have a credit score above 700

For Lending From Online Mobile Wallets

• The borrower must be a resident of Tier I and Tier II cities
• The borrower must be a salaried individual
• The monthly take-home salary should be at least Rs. 15000
• The profile check will be completed through a social networking website

What to Keep in Mind While Applying for Instant Loans Without Documents?

The process of applying for an instant loan without documents is possible only for borrowers who choose their existing banking partner for their loan. If you are new to the lending company, minimal documentation is mandatory before your loan is approved and disbursed.

Thus, the following points must be kept in mind while applying for an instant loan without documents:

 Watch your credit score: 

Even a single instance of delayed payment will impact your credit score. Thus, diligently paying off bills, credit card dues and EMI instalments will help you maintain a healthy credit score. The current credit score is taken into consideration for extending loans to both existing customers and new borrowers.

Requirement of essential documentation

Basic documentation is required for every loan. In the case of existing customers, the KYC is already done. Therefore it is not needed again. But for new customers, identity, address and income proof are mandatory even for instant loans.

Rate of Interest: 

Some lenders may offer an instant loan without documents at a very high rate of interest. Be aware of the interest rate charged as it is the cost of the loan. If you have all your documents for identity, address, and income in place and have a good credit score, negotiate for a lower interest rate.

Frequently Asked Questions

✅Can I get an instant loan without proof of employment?

Yes, you can qualify for an instant loan despite being unemployed. However, this is based on certain conditions. You’ll have to submit bank account statements that reflect a healthy bank balance and also show regular income inflows like rental income. If the lender is convinced about your repayment capacity, you’ll be eligible for an instant loan.

✅Can I get a loan with no proof of income?

In case you do not have income proof to submit, try applying for it with a co-applicant or guarantor. But ensure that your co-applicant has a good credit score.

✅Can I get an instant loan without documents on a bad credit score?

Your current credit score will reflect your financial behaviour and actions over the last 36 months. But if you have got a promotion or received a salary hike recently, you can convince the lender about your current upgraded income. If the lender is convinced with your improved repayment capacity, he may approve your instant loan even on a bad credit score.

✅What are the features and benefits of instant loans without documents?

• Short term loan typically repaid within five years
• Low principal value loans up to Rs. 5 lakh.
• Convenient and easy to apply online
• Quick disbursal within 1 hour
• Completely digital and, therefore, can be applied from anywhere and anytime.
• Primarily operated through Smartphone applications, it is entirely paperless.
• Hassle-free as there is no need to visit the lender personally to complete the loan application formalities.
• Collateral free loan and does not even require a co-applicant or guarantor.
• No end-use clause is associated with the loan.

✅How soon can I get my instant loan credit?

Instant loans are quickly approved and disbursed. For instance, ICICI Bank disburses instant loans to its existing customers with a good track record in 3 seconds! Other lending companies also approve instant loans within minutes and have a same day disbursal.

✅Are instant loans paperless?

The instant loan application and subsequent interaction between the lender and borrower happen through digital platforms. The application form is paperless. Also, the images of documents required are uploaded on the system. A KYC (video KYC), if required, is conducted to complete the process. Thus, instant loans are absolutely paperless.

✅What is the maximum loan limit for an instant loan without documents?

Different lending institutions have other maximum loan limits. However, for most lenders, it is capped at five lakhs.

✅Do instant loans without documents have a processing fee?

Yes, lenders charge a processing fee to approve an instant loan without documents. It is levied as a percentage of the principal amount.

✅What is the minimum rate of interest at which instant loans without documents can be availed?

State Bank of India charges the lowest rate of interest on instant loans without documents starting at 9.60% p.a.

✅Who is eligible for instant loans?

Banks and Non-Banking Financial Companies offer instant loans to applicants aged between 18 and 65 years who are Indian citizens. They can be salaried or self-employed and must have a credit score above 700.

Online Mobile Wallets approve instant loans for salaried individuals who reside in Tier I and Tier-II cities. They check the applicant’s profile through social networking websites. The amount of loan they can apply for is linked to their monthly take-home salary.