SBI YONO, an integrated digital banking mobile application of the State Bank of India, is preparing to offer fast loans in two-wheeled and express credit categories. India’s largest bank offers two wheeler loans up to Rs 2.5 lac and express credit loans up to Rs 20 lakh outside of the app. After the launch of the next service, SBI consumers will be able to obtain these loans from the mobile application itself. However, the personal loan amount offered in the form of express credit loans through the Yono app could range from Rs 5 to 10 lakh, according to a report by Business today.
Currently, SBI Yono offers small loans with an average of 2.5 lakh. Under this program, customers do not need to go to the bank branch and there is no physical paperwork. However, these loans are only offered to a category of customers pre-selected by the bank at the moment. These loans are based on customers’ credit history, repayment history, and spending behavior. Pre-approved personal loans, the first credit feature launched by SBI’s mobile app, are very popular as loans worth over Rs 21,000 crore were disbursed in 2020-2021.
According to Business today, SBI Yono now plans to add the two personal loans to its basket of products. For hassle-free processing of these loans, the bank needs a system to process the documents digitally. SBI is already testing a digital document execution (DDE) system, which includes digital signatures and other digital infrastructure, will use the electronic stamping system already available in 22 states and EU territories. The bank also plans to offer these loans to new SBI clients.
Soon, SBI will launch its own account aggregation system, which will provide consumers with instant and easy access to credit history and other financial information. The Account Aggregator (AA) framework was approved by the Reserve Bank of India in 2016, to facilitate the sharing of financial data for easier access of individuals or businesses to information such as credit history, deposits, investments and others using a one-stop shop.
SBI’s mobile application platform generated leads for loans worth Rs 10,000 crore, according to the bank.
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