Instant personal loans to add cheer this festival season

Offered to those who have desirable credit scores and financial history. If you are looking for a quick personal loan this festival season, cheer up. You can get the amount credited to your account in less than five minutes. In what could be seen as a result of digitisation and data mining, some banks are now offering instant personal loans to cheer up customers. The rate of interest has also dropped to less than 12 per cent, with individual variations across banks, making these loans affordable. “I got a text message stating that a pre-approved loan of ₹2 lakh is on offer to me. When I opened my mobile banking app, it took three minutes for me to get the loan amount credited to my account,” V Lalitha, a State government employee, and a customer of SBI, told BusinessLine. According to an official with SBI, the instant loans are being disbursed for eligible customers through Yono, its integrated digital banking platform. “There is no human interface or documentation. Every aspect is checked by the system, and loan offers, sanction and electronic disbursal of loans happen online either on the mobile or portal,” he said. The Xpress Credit personal loans in the retail segment of SBI has been growing fast. In the first quarter of the current financial year, it grew 31 per cent at ₹78.691 crore against ₹60,100 crore in the same period last year. ICICI Bank, too, is sanctioning and disbursing instant loans through its ATMs for existing salaried customers of the bank. It is a pre-qualified personal loan, which will be credited to the savings account instantly in a paperless manner. Through this offering, a customer can get personal loans of up to ₹15 lakh for a fixed tenure of 60 months. Along with normal personal loans being processed at branches, instant loans have also been driving growth. The unsecured credit card and personal loan segment portfolio posted a 41 per cent year-on-year growth in the first quarter for ICICI Bank. Other banks such as HDFC Bank, and some public sector banks, also have a similar story to tell. The use of CBIL data has been the backbone of instant loans. The loans are offered to those who have desirable credit scores and financial history after being scanned by the systems. The Know Your Customer (KYC) norms were also streamlined in the recent past by banks, along with Aadhar and mobile linkages. However, instant loans are generally extended only to those customers who operate salary accounts.

Courtesy By: https://www.thehindubusinessline.com/money-and-banking/instant-personal-loans-to-add-cheer-this-festival-season/article24865799.ece

Date: 2018-10-16 16:33:31