How safe are online Business Loans?

How safe are online Business Loans?

Online Business loans offered by the digital lenders like Indifi have not just increased the chances of small businesses getting access to unsecured business loans but have also been successful to offer the ease of access and quick turnaround time to avail such a business loan. The same business loan which a small business can now get within 24 hours that too without collaterals used to take weeks or even months with the traditional lenders and that too after submitting the collaterals and multiple documentations.

Here’s a look at how safe is the online business loan in India, and to understand that let us look at the process followed by the top online lenders like Indifi.

Step 1

A small business visits the website of the digital lender and fills a quick online form with the basic business details and KYC, this process is completely automated and has no human intervention involved from the digital lenders. A small business can simply select the right product that suits their business type and apply for the unsecured business loan.

Step 2

The leading digital lenders like Indifi, then fetch the business transaction data using the advanced machine algorithms, which is again an automated process with no human intervention. To understand let's take the case of a restaurant when it fills the online form for a business loan, Indifi fetches its transaction data from the partner food delivery app with prior confirmation depending upon the type of product chosen.

Step 3

Indifi then does the underwriting basis the business transaction data and the public data which includes the credit bureau and other details made available by the business itself. This process is completely automated and one can get an instant decision on the online application if all details are available online itself. Since the process is completely automated there is again no human intervention which makes it completely secure.

Step 4

Indifi then reaches out to the partner lenders based upon the business profile and the lender profile using an automated match, the lenders provide their offers to Indifi, Indifi then provides the best offer or even options to the small businesses for their unsecured business loan application to get their approval. The small business can simply provide their approval online without any need to visit any physical location or meet an individual. Thus, removing any need for human intervention in online business loans.

Step 5

Once the unsecured business loan offer is approved by the small business, they get the agreement and the required documents which can simply be sent online and Indifi then processes the amount in the account of the small business online.

Now, if we compare this process of the online business loan with a traditional lender, we realise that the digital lenders like Indifi do away with the manual intervention at every key step and thus ensure the safety of customer data and information. Also, the leading digital lenders like Indifi follow the guidelines set by the regulators to ensure all the benchmarks are being followed. If a small business compares this with a normal business loan DSA, then a physical file with the critical documents moves from one lender to another leaving footprints and impressions everywhere, which creates a huge problem for the small business as everything is made public.

The online business loans are hence the best bet for a small business not just in terms of getting the access to unsecured business loans but also ensuring that their data is safe and protected, a small business can rest assured that there is no misuse happening with it. The process being automated ensures complete safety and the loans get processed as quickly as within 24 hours with the top digital lenders like Indifi. The digital lenders thus act as a fast and secure bridge between the growing needs of a small business and access to funds needed for the growth. Online business loans are completely safe and secure and help the small businesses to get access to the funds they need for their growth

Last updated:7/9/2020 12:50:41 PM


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