In a first in the microfinance and financial inclusion space, Bharat Financial Inclusion Ltd (BFIL) on Wednesday launched Aadhaar-based instant, cashless loan disbursal here.
It took less than seven minutes for 30-year-old Guddy Devi to apply and receive a Rs. 29,565 loan for a new grocery shop she intends to set up.
BFIL has commenced its national roll-out of the process, extending loans to members of joint liability groups here, about 60 km from Jaipur.
“This is based on a pilot we conducted in Odisha during September-December 2016. The complete roll-out across all our locations in the country will be over by June 2017,” K V Rao, Chief Operating Officer, BFIL told BusinessLine.
This is expected to benefit 66 lakh Mudra loans beneficiaries nationally.
The new process is based on adoption of digital technology with combined use of a tablet and dongle by loan officers for applicants with Aadhaar cards.
After Aadhaar-based verification of identity, e-KYC norms and eligibility of an applicant, including credit bureau data, the loan is processed to be transferred instantly to her bank account.
The new process benefits all stakeholders. “We are happy as we need not lose our work hours for availing of a loan,” said Kali, who took Rs. 25000 loan for buying a cow.
There will be no need for borrowers to go to banks to deposit the loan money for safe keeping, she added.
Operational costs will come down for the lender. ” We expect the cost-to-income ratio to fall to much less than 40 per cent in a couple of years,” said Rao.
The risk of fake customers too can be eliminated.
The technology upgradation is in line with the Pradhan Mantri MUDRA Yojana, he added.
[Copyright by G NAGA SRIDHAR]