Public sector lender Bank of Baroda (BoB) has launched a Digital Lending Platform through which prospective retail borrowers can get loan approval digitally through a paperless process.
Bank of Baroda said in a statement that the bank’s digital platform was providing ‘in-principle approval’ for home, car and personal loans in 30 minutes without human intervention. The bank will offer ‘Online Loan against Fixed Deposits’ through the platform.
Prospective loan seekers can use the digital platform through its website, mobile banking app and social media as well, the lender said.
Bank of Baroda said with the launch of its digital platform personal loan disbursements will be completely digitised first, followed by MSME (micro, small and medium enterprises) and agriculture loans.
The bank expects digital share of disbursement in retail lending to grow to 74% over next five years.
Bank of Baroda is already offering pre-approved micro personal loans to its existing customers to shop through offline/online partner channels and pay later in easy EMIs (equated monthly instalments). Customers can avail the amount into their savings bank account and convert it into EMIs from 3 to 18 months through m-Connect+ (the bank’s mobile banking app) in 60 seconds, the PSU lender said.
Commenting on the digital lending platform, Executive Director of Bank of Baroda Vikramaditya Singh Khichi said, “The primary objective is to provide exceptional customer experience, personalised customer journeys and scale the lending business through digitization. Bank has attempted to digitize itself internally by building a high-performing, innovative environment, which has allowed the bank to reduce time-to-market for their products. Bank envisages outpacing the banking industry growth by 1.50 times at CAGR of 16% over the next five years by adopting a ‘digital first’ lending approach across retail, MSME and agriculture segments.”
Through the new platform, Bank of Baroda will offer ‘Online Loan against Fixed Deposits’. Its fixed deposit holders can avail loan against their online FD instantly through mobile banking and net banking facilities.