E-finance Firms In The Process To Make Loan Approvals Easier
BENGALURU: E-Finance firms are walking in the footsteps of Flipkart and Snapdeal now! Basically they are trying to bridge the gap of the transactions in such a way that the customers are getting the best deal out of those transactions by getting loan approvals reports Economic Times. When compared to now earlier the same process was a tedious offence.
Nowadays everyone claims that the banks is offering loans at the cheapest rate without even explaining all the rules and regulations involved within it. For instance recently a customer got his loan approved by a bank for whopping 5 Crore without even a backround check. Reason for no background check? He was an old client!
There is a steady growth in the portals which compare online rates since its initiation in March 2014. A unit of insurance comparison site PaisaBazaar.com is offering customers to ease off on loan rates comparison and picking up the best and cheapest deals from the lenders. In order to check the customers profile, these companies are extensively using online facilities and making use of the e-KYC initiative which is nothing but a service offered under Aadhaar project by UIDAI department of Government of India. Here by this initiative the companies can check the deals with the positive Identity of their customers by validating their Name, Address and other information against their Biometric Identity with Aadhaar data center.
The basic average margins that is given in a personal loan is 1.5percent-2percent, while on home loans and loans it is around 0.5-1percent.All this has helped to bring down the loan approval and the payout time by a great extent.