An unprecedented crisis in the shape of Covid-19 is changing financial services. After a long lockdown, India is heading back to normal with social distancing restrictions. However, with Covid-19 cases still on the rise, people prefer contactless commerce. Therefore, businesses are operationalizing digitally in order to survive in this new reality in order to serve their customers.
Financial services, too, are going contactless now. Many banking processes were already digital, some like seeking a loan, buying a credit card or foreign exchange, continued to require a customer’s physical presence. Not anymore.
In the Covid19 world, people dread venturing out of their homes and meeting strangers due to health risks. But what if there is a sudden need for liquidity for your immediate needs? Can you get a loan without stepping out of your house?
Yes, you can. In this article, I explain two ways to avail credit without stepping out of your home.
Opt For Lenders Providing Contactless Loans
There is a great need for contactless financial services which eliminate the need for physical meeting and paper-based documentation. Thankfully, the RBI had approved the use of video KYC in January, just days before the pandemic hit. Many banks are now helping customers open accounts through video KYC, which can be done from your home without having to meet the bank. With contactless finance becoming a reality, you should look for banks that can provide you loans online through digital KYC methods. These digital methods involve video or Aadhaar OTP-based e-KYC, which allows banks to authenticate customers remotely, without the need for offline meetings or furnishing hard-copies of the required documents.
Check With Your Bank IF You Can Avail A Pre-Approved Loan Offer
A pre-approved loan is anoffering from your bank based on an existing relationship with it. The bank considers your income stability, credit score and loan repayment history before creating a pre-approved loan offer for you. In case of a need for credit, you can check with the bank where you have a savings account about a pre-approved loan offer. The bank will ascertain your eligibility before sanctioning it. To know if you are eligible to avail a pre-approved loan, connect with your bank directly, or go to a financial aggregator website where all your pre-approved offers from various financial institutions are listed.
Besides the above two options, you may also seek financial help from your friends and family. However, do explain the reason behind the loan and assure them that you will return it completely in a specified time-frame. After all, creditworthiness is critical in these testing times.
The author is CEO, BankBazaar.com, India’s leading online marketplace for loans and credit cards.