In an era where every aspect of life is becoming increasingly digitized, it's no surprise that securing a personal loan has also moved online. Considering the convenience and efficiency it offers, digital personal loans have become immensely popular. However, as with any online process, the Know Your Customer (KYC) procedure can sometimes be a hiccup in the smooth journey of securing a digital personal loan. 

This article will provide several tips that will help borrowers navigate through the KYC procedure efficiently.

1. Understanding the KYC Procedure in the Digital Personal Loan Process

The KYC process is a method of verifying the identity of a customer, in this context – a potential borrower. In a digital personal loan scenario, KYC is done remotely, without any physical interaction. It involves providing an identification document and a proof of address online. Note that the KYC process is a mandatory step, regulated by financial authorities to prevent illegal activities like money laundering, identity theft, and fraud.

2. Keep Your Documents Handy

While lenders have streamlined their processes to make it seamless and customer-friendly, KYC procedures require necessary documentation. Make sure you have scanned copies of documents such as your Identification proofs (Passport, Voter’s Card, Driving License, Aadhaar Card), address proofs, latest bank statements, salary slips, relevant tax payment receipts, etc.

3. Ensure Your Documents are Legible

The success of the KYC process is heavily dependent on the quality of your scanned documents. The information on your documents should be clearly visible and legible. Avoid scanning copies of photocopies as this can lead to blurring or distortion of the content on the documents.

4. Selfie Verification

Most online lending platforms nowadays require a live selfie verification to cross-verify the identity of the borrower with the details and documents provided. Ensure you are in a properly illuminated place, which allows clear visibility for the camera to capture your face details correctly. 

5. Authenticated Electronic KYC

QIB-enabled (Quick Response Code Instant Borrowing) platforms can complete your eKYC procedure based on your Aadhaar card details. You'll have to enter your Aadhaar number, and the OTP sent to your registered mobile number with UIDAI for verification. It's a quicker and error-free solution as compared to manual KYC document uploading. 

6. Be Ready with your Digital Signature

Some platforms might require you to digitally sign your loan agreement. Therefore, be ready with a digital signature. These signatures are legally recognized and are needed to formalize your digital personal loan agreement. 

7. Keep Track of Your Credit Score

Prior to applying for a digital personal loan, check your credit score. A healthy credit score not only smoothens the application process but can also help you secure better loan terms and interest rates. You can access your credit report online via various credit bureaus.

8. Understand the Complete Process

The best way to ensure a smooth KYC process is by understanding the entire digital personal loan process, including the steps involved, the terminologies used, and the overall loan structure. Knowledge of the process can save you a lot of confusion and time.

9. Patience is Key

The digital personal loan approval process takes some time since it involves various checks and verifications, including the KYC process. While lenders endeavor to make the process as fast as possible, some delays can occur. It’s essential to be patient and keep yourself updated about the process.

10. Contact Customer Support for Assistance

Don’t hesitate to contact your lender's customer support team if you experience any issues during the KYC or loan application process. It's better to clarify doubts or resolve issues right away than facing complications later on.

Conclusion

The KYC process may seem complex and intimidating, but it's crucial for the security of your digital personal loan. By keeping these tips in mind, you can make the process hassle-free, paving the way for a smooth digital personal loan journey. Embrace this digitised process, being the new normal, understanding and navigating it efficiently can make securing a personal loan both quick and convenient.