Indians have seamlessly transitioned to the online medium for various processes, and loan acquisition is no exception. The advent of digital banking and other online financial services has positively impacted both urban and rural populations. The idea of physically going to the bank or the office of a non-banking financial company (NBFC) to deposit cash or obtain a loan is on the way to becoming obsolete, with the digital ecosystem supporting people to conduct transactions and complete all the necessary processes from the comfort of their homes. Identity verification was perhaps the only process that wasn’t deemed possible through digital mediums until recently; however, the emergence and legitimization of video KYC for loan has changed that.
This article gives you a comprehensive insight into what video KYC for business loans is, the many advantages it offers, and how it puts forward a secure solution to expedite your KYC for business loan acquisition process.
The Tech Transformation
Indians have seamlessly transitioned to the online medium for various processes, and loan acquisition is no exception. The advent of digital banking and other online financial services has positively impacted both urban and rural populations. The idea of physically going to the bank or the office of a non-banking financial company (NBFC) to deposit cash or obtain a loan is on the way to becoming obsolete with the digital ecosystem supporting people to conduct transactions and complete all the necessary processes from the comfort of their homes. Identity verification was perhaps the only process that wasn’t deemed possible through digital mediums until recently; however, the emergence and legitimization of video KYC for loan acquirement has changed that.
Video KYC for loan, which was launched in 2020, is a video-based customer identification process (V-CIP) that authenticates the user’s identity in real-time. It requires you to upload a live video that is either recorded using the front-facing camera of your mobile phone or the webcam of your laptop or desktop computer. The video is submitted along with digital copies of your Aadhaar and PAN card.
Advantages of Video KYC for Loans
As a completely digital process, video KYC presents a variety of benefits, including:
- Time-saving: The entire verification process can be completed in a matter of minutes and does not require you to visit the bank branch or lender’s office physically.
- Paperless: Being a completely digital process, video KYC is an environment-friendly solution that also saves the cost of paper.
- Device compatibility: No matter where you are or what device you own, as long as there is a working camera, the process can be executed seamlessly due to its ease and compatibility.
- Cost-saving: Financial bodies can save customer on-boarding costs considerably, the benefits of which can then be passed on to the customer.
- Improved customer experience: With video KYC, the entire loan application process can be completed digitally, enhancing the overall customer experience.
Grow your MSME with collateral-free business loans
Video KYC for Business Loans: Is it Safe?
While technology has made life convenient, it has also raised questions in terms of data security. Banking and loan processes require submitting a lot of sensitive information, the exposure of which can be concerning for business owners.
Video verification makes use of artificial intelligence and machine learning tools to authenticate users. While the technology is accurate and completely secure, there are a few steps that you need to be aware of to keep your data safe at your end:
- It is essential to check your video KYC for loan source links before you start. The verification prompt must come from a credible source (your bank or lender) via official SMS or email.
- Another essential safeguard is to go through the redirected website that will host your video KYC for business loans process. An HTTPS hyperlink would assure you an SSL certificate that protects all your sensitive data.
- Once the verification process starts, you can ask to see the representative’s identification card to ascertain credibility.
- You should be allowed to take screenshots during the process and receive a copy once the entire session is concluded.
In terms of monitoring, the RBI has permitted NBFCs, banks, and other financial bodies to leverage video KYC for loans. The RBI has also presented a set of guidelines that need to be mandatorily followed by all financial institutions.
Video KYC for Loans and Quick Disbursement with Kinara Capital
Video KYC for loans has played a pivotal role in transforming Kinara Capital’s loan application and disbursement process, allowing us to deliver collateral-free loans to MSMEs in an astonishingly short period of just 24 hours. By harnessing the power of this digital innovation, we have been able to streamline the identification and verification processes, drastically reducing the time and effort required for loan approval.
With video KYC, our customers can complete the entire loan application process from the comfort of their own premises, eliminating the need for physical visits to our branches or offices. This not only expedites the process but also enhances the overall customer experience, making it more convenient and accessible for MSMEs in need of quick and hassle-free financial support. The security and accuracy of video KYC ensure that our commitment to providing loans within 24 hours remains unwavering, making Kinara Capital a reliable and efficient partner for MSMEs seeking to fuel their growth.
If you’re looking for a quick way to acquire a loan for your business, you can connect with our team at Kinara Capital. We have a fully digital application process, and our doorstep customer service caters to over 3,000 pin codes and offers exceptional support in your regional language. So, acquire a collateral-free loan with Kinara Capital and witness the sustainable growth of your enterprise.
