Bank of Baroda (BoB) has launched its Digital Lending Platform (DLP), which will allow potential personal loan applicants to obtain loans digitally through a paperless process
The platform provides “in-principle approval” for home, auto and personal loans within 30 minutes without human intervention, the public sector bank said in a statement. The bank will also offer an “online loan against fixed deposits” via DLP.
Potential loan seekers can avail the DLP facility through multiple channels – website, mobile banking, online banking and social media, he added.
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With the launch of DLP, BoB said that personal loan disbursements will first be fully digitized, followed by disbursements from MSMEs (micro, small and medium enterprises) and agriculture.
The bank predicts that the numerical share of disbursements in retail loans will increase to 74% over five years.
BoB said that the pre-approved personal micro-loan is offered to some existing customers to shop through partner offline / online channels and pay later in easy EMI (equivalent monthly installments).
“Customers can also use the amount in their savings bank account and convert it to EMI from 3 to 18 months via m-Connect + (the bank’s mobile banking app) in 60 seconds,” he added. .
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Vikramaditya Singh Khichi, Executive Director, said the main goal of DLP is to evolve lending business through digitization.
He observed that BoB has attempted to digitize itself internally in an attempt to reduce the time to market for its products. The bank plans to exceed the growth of the banking sector by 1.50 times at a compound annual growth rate of 16% over the next five years by adopting a digital lending approach in the retail, MSME and agriculture, Khichi said.
Ramjass Yadav, chief managing director of the Bank of Baroda, said the DLP will help the bank double the non-corporate portfolio by 2025.