Personal Loans are common financial solutions people use to fulfil their desires, handle emergencies, or make big-ticket expenses. Nowadays, online EMI payments have become increasingly popular compared to traditional payment systems. Remember the time when people had to deposit signed cheques to pay loan EMIs. But thanks to online payment systems, regular and timely EMI payment is possible without delay or hassle.
Speed, convenience, and security are the key advantages of paying EMIs online. The following sections will discuss the benefits of online EMI payments and explain how to pay EMI online.
Enhanced security is one of the most important benefits of paying loan EMIs online. Digital lending institutions use advanced security protocols to protect their customers' data, such as multi-factor authentication and encryption. Apart from the password for net banking or CVV for debit or credit cards, online payment systems are also secure with card PIN, 3D secure PIN, OTP, etc. This is particularly crucial for NBFCs that deal with customers’ confidential financial data on a regular basis. By paying EMI online, these companies ensure their customers' data remains safe and secure.
Speed is the primary reason behind the popularity of online EMI payments. Compared to traditional methods like cash and cheques, online payment systems are immediate, process payment instantly, and generate receipts in a second. Digital payments are immediate, whether it is a public holiday, weekend, or middle of the night. Borrowers can pay their EMIs using their phone or laptop from any place with internet connectivity. Such a payment procedure is much more convenient than traditional payment systems.
Another benefit of paying EMIs online is regulatory compliance. Digital loan companies are subject to stringent regulations and oversight by authorised regulatory bodies. This ensures the company operates while staying compliant with KYC and AML regulations. By paying loan EMIs online, loan providers ensure operations with regulatory compliance, reducing the risk of legal and financial repercussions due to non-payment for a Personal Loan defaulter.
Digital loan companies levy lower charges than traditional finance companies, making them attractive to borrowers who wish to save money. For instance, new-age NBFCs like Hero FinCorp allow 100% digital loan payment procedures without additional charges. It saves money compared to traditional systems that require branch visits and paperwork. This is true for finance companies that must minimise their expenses to stay competitive in the market.
Borrowers can save several other costs with online payment methods, such as travel costs, postage fees, etc. They can complete their EMI payment from the comfort of their homes, saving money on travel, postage, transactions, processing, etc.
Another benefit of paying EMIs online is the faster transaction time and due settlement. Borrowers can complete digital money transfers efficiently and quickly within a few minutes. This is especially beneficial for lending institutions that process several transactions regularly to meet their customers' needs. It also benefits customers who need to pay several EMIs for various loans each month. With instant account-to-account transfer facilities, lending institutions can accept the payment and generate a receipt immediately.
Learning how to pay EMI online provides access to several modern payment systems, including online payment gateways, debit and credit cards, mobile wallets, net banking, etc. Lending institutions streamline payment procedures with these systems, reducing costs and improving customer service. Furthermore, some lending institutions offer advanced developer tools to integrate payment systems into other platforms and applications.
Whether from home or office or miles away from the city of residence, borrowers can simply log in to an online EMI payment portal and complete the payment instantly. As a result, they don't need to physically visit a payment centre for EMI payments, saving a lot of time and effort. Moreover, online EMI payments are easy and quick, enabling borrowers to pay their EMIs before the last date. It protects them from becoming a Personal Loan defaulter and paying late payment charges and penal interest.
One of the biggest advantages of online EMI payment is mobile access. Many lending institutions now have official websites or loan apps for mobile devices. These facilities provide the freedom to make on-the-go payments, which come in very handy.
Whether borrowers want to stick to a budget or check the date of their last EMI payment, they can track their transactions through the dedicated payment tracking feature. Log in to the website or app and select the option to track past transactions. Moreover, the tool allows filtering the statement by year, month, or date. It also eliminates the need to visit the lender’s branch office for an account statement or fiddle with receipts at home.
Borrowers can complete their EMI payment using their preferred payment method. They can pay online, at the store, through e-mandate, or using the customer service app. When paying the EMI online, they can pay via net banking, debit card, cash card, e-wallet, or UPI. They can also download the customer service app to pay the EMI. Digital payment systems also make international payments hassle-free. An online payment platform allows EMI payment even when the borrower is outside India.
The most unique advantage of online payments is the facility to make automatic payments directly from the borrower’s bank account. With an online payment system, they can automate their EMI payments to the loan company’s account before the due date. After setting up the auto-debit facility, borrowers no longer need to remember the due dates or stand in queues to pay the instalments.
Want to know how to pay EMI online? These are the steps to follow:
In short, paying an EMI online has numerous benefits, including regulatory compliance, enhanced security, access to modern tools, faster transactions, real-time tracking, lower charges, etc. Using an online payment platform, borrowers can improve their finances, reduce costs, and conveniently pay EMIs. As such, they must consider the advantages of using online payment systems when paying their EMIs for existing loans.
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