If you are an HDFC Bank account holder in need of a loan or a credit card, all you need to do is walk over to your nearest HDFC Bank ATM.
Starting February 3, HDFC Bank, the country’s second-largest private lender, will extend small instant loans to its customers at ATMs, besides the regular cash withdrawal and balance inquiry options.
“It will be offered to existing HDFC Bank customers based on their transaction details, salary credits, balances, credit and or debit card repayments,” Arvind Kapil, senior executive vice-president and business head, unsecured, home and mortgage loans, HDFC Bank, told HT. The loan amount is decided via advanced analytics for which the bank got approval from the Reserve Bank of India two months back, Kapil said.
“So, with a fair assessment of customer profile, it shows their eligibility and after authorising an e-agreement on the ATM screen itself, the loan gets credited directly to their account. It will be over in the time you take while using an ATM today,” he added. The new feature was finalised after studying customers’ banking habits. “About 42-45% customers transact outside banking hours. Hence, we want to help them bank when they are free,” Kapil added.
Private banks have, of late, slashed the time required to access loans from three days to within a minute.
Under the second phase of the rollout, all HDFC Bank ATM users will be able to use ‘Click to call’ to get a call from the bank within a minute. In addition, customers can get credit cards and top-ups on existing loans.
Kapil expects this innovation to contribute close to 10-15% to the bank’s unsecured lending business by next year. HDFC Bank plans to aggressively grow this book, which includes personal loans, business banking, mortgages and credit cards.
As on December 31, 2015, personal loans of the bank grew 30% to Rs 35,071 crore, accounting for 16% of the total retail book. About 6.72 million credit cards have been issued till October 2015.
HDFC Bank has a customer base of 34 million and around 11,843 ATMs. It has a total of 4,281 branches as of December 31, 2015.