New Delhi, January 12: A short term loan applied by Sumiran Ghosh (name changed) through one of the online lending platforms was rejected because he could not provide the latest payslips as part of the documentation process . The 30-year-old professional’s salary was delayed by two months, and the last salary received was in October. But as his monthly expenses piled up, he decided to apply for a short-term loan for the first time, at the beginning of the week of January 2020.
With the rise of smartphone-enabled fintech lending companies – such as CASHe, Paisabazaar, LoanTap – a person can opt for a Short Term Personal Loan (STPL) or a payday loan to deal with the resulting shortages of funds. late pay. Millennials opt for such loans because of the easy MIL and flexible loan repayment options.
Although most of these fintech companies do not consider the credit rating of salaried professionals as a major criterion for dealing with unsecured loans, they are necessarily looking for documents such as Aadhaar card, pan card, voter ID card , as well as a letter of membership from the company, an employee card, payslips for the last three months, bank statements and access to social media accounts, SMS, etc. – which must be submitted via smartphone on their mobile application.
According to Gaurav Aggarwal, Director and Head (Unsecured Loans), Paisabazaar, the payday loan comes with a sanctioned credit limit where the applicant can withdraw money as needed and interest only needs to be paid on the amount. borrowed and only for the duration it was borrowed. Once an overdraft facility is set up, you can withdraw money instantly and as many times as you want without having to open an overdraft account over and over again.
Ghosh was informed of the rejection of his loan application after three days. He said, “Even though I had received my salary from October to December, my application was rejected. The client’s representative said the company does not issue a loan unless it obtains the borrower’s current pay slips.
Aggarwal points out here that “Although it is very difficult for applicants of such a profile to obtain short-term loans, some lenders may still approve applications based on their own assessment of credit risk. “
Although CashE declined to comment, LoanTap and other short-term loan providers could not be reached for comment at the time of publication of this report.