18 October,2023 04:17 PM IST | Mumbai | BrandMedia
Kotak Mahindra Bank
In India, financial institutions like Kotak Mahindra Bank have adapted to changing times by offering personal loans online with Video KYC (Know Your Customer), revolutionising the lending landscape. This article explores the evolution of ways to apply for personal loans in India, highlighting the convenience and innovation associated with introducing Video KYC without focusing on any specific financial institution.
Personal loans have witnessed a significant surge in popularity in India over the years. Traditionally, they were associated with meeting immediate financial needs, such as medical emergencies or travel expenses. However, their scope has expanded to encompass a wide array of purposes, including:
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1. Home Renovation: Upgrading living spaces and enhancing comfort.
2. Education: Funding higher studies or specialised courses.
3. Wedding Expenses: Celebrating life's significant milestones without compromise with Kotak Mahindra Bank Marriage Loan.
4. Debt Consolidation: Combining multiple loans into one for ease of management.
5. Travel Adventures: Exploring new destinations and creating memories.
6. Business Initiatives: Providing capital for entrepreneurial endeavours.
The advent of the internet and digital technology has transformed the lending landscape. Applying online for personal loans has become the preferred choice for borrowers for several compelling reasons:
1. Ease of Application: Borrowers can apply for loans from the comfort of their homes or offices, eliminating the need for physical visits to banks or lending institutions.
2. Efficiency: Online loan applications are processed faster, reducing the waiting time for loan approval and disbursement.
3. Comparison: Borrowers can easily compare loan offers from various financial institutions to choose the one that best suits their needs.
4. Accessibility: Online loans are accessible 24/7, allowing borrowers to apply conveniently.
5. Minimal Documentation: Digital lending often requires less paperwork, smoothing the application process.
Video KYC is a groundbreaking development in the personal loan landscape. It blends technology and regulatory compliance to streamline the customer verification process. Here's why it's a game-changer:
1. Enhanced Convenience: With Video KYC, borrowers can complete the KYC process remotely via video calls with authorised representatives. This eliminates the need for physical visits to banks or branches.
2. Efficient Verification: Video KYC ensures efficient verification of identity and other necessary documents, reducing the time required for loan approval.
3. Security: Robust encryption and security measures protect sensitive data during the video call, ensuring the safety of personal information.
4. Compliance: Video KYC complies with regulatory requirements, making it a secure and legally accepted customer verification method.
The process of availing a personal loan through Video KYC typically involves the following steps:
1. Application: Borrowers apply for the loan online and upload the necessary documents.
2. Scheduling: The financial institution schedules a video call with the borrower at a mutually convenient time.
3. Verification: During the video call, the borrower provides live proof of identity and documents.
4. Approval: The loan is approved once the verification is complete and successful.
5. Disbursement: The approved loan amount is disbursed to the borrower's bank account.
Video KYC offers several advantages to borrowers:
1. Convenience: Borrowers can complete the KYC process without leaving their homes, saving time and effort.
2. Faster Processing: Video KYC accelerates the loan approval process, ensuring quicker access to funds.
3. Enhanced Security: Stringent security measures protect sensitive information during video calls.
4. Regulatory Compliance: Video KYC meets regulatory requirements, providing peace of mind to both financial institutions and borrowers.
Personal loans have evolved from traditional brick-and-mortar processes to convenient online solutions. The introduction of Video KYC has further enhanced the borrowing experience, simplifying the verification process while maintaining compliance with regulations. As technology continues to shape the lending landscape, borrowers can look forward to even more convenient, secure, and tailored personal loan experiences in the future.
