Explained: How fintech firms are able to disburse loans within 24 to 48 hours

The procedure to lend money is lengthy as factors like credit score, lending history, salaries and bank balance are taken into consideration by banks. This has made it tough for everyone to avail bank loans.  A good CIBIL score enhances your creditworthiness but if your score is bad, it also reduces your chance to get a loan. In these cases, fintech firms have emerged as an alternate that disburse loan in just 24 hours to 48 hours, post acceptance. Bala Parthasarathy, CEO & co-founder, MoneyTap explains that fintech platforms now offer paperless and hassle-free money lending services to borrowers. Unlike traditional lenders like banks and NBFCs, which usually take weeks to approve a loan, users can get their loans approved via digital lending platforms in minutes. It goes without saying that technology is the driving force behind the quick and efficient fintech services, which anybody with an internet connection and a computer or a smartphone can access.

"MoneyTap employs advanced technological solutions like India Stack and open APIs, in partnership with leading banks and NBFCs to facilitate users with access to its efficient credit lending services. Further, the platform’s AI-enabled technological infrastructure enables it to customize loan products for customers with greater accuracy," Parthasarathy  said. 

He added that using ML, DL, data analytics, and smart algorithms, MoneyTap’s digital-lending platform provides the borrowers with seamless access to efficient, optimum and relevant loan products based on a comprehensive analysis of both traditional and non-traditional data points. At the same time, automation also allows for a simpler, faster and extremely accurate assessment of borrowers’ creditworthiness.

Aditya Kumar, Founder & CEO Qbera.com, believes that technology allows consumers to get immediate information on whether they qualify for credit or not. "Through the customer's KYC information (PAN and Aadhaar), his/her credit report is pulled from the bureau, and essential credit parameters that include the credit score, repayment history, and other attributes are instantly evaluated by a risk-assessment algorithm," he said.

"The algorithm does a comprehensive analysis of the customer's credit profile and assesses whether or not the consumer's credit attributes are in line with the lender's underwriting norms. After receiving approval, consumers are asked to submit their supporting documents, which are then digitally verified before the final loan offer is rolled out. Post acceptance of the offer, the amount is often received in under 24 hours," Kumar added.