Financial institutions validate their customers’ legitimacy through the process of Know Your Customer (KYC). They take various documents from customers to verify their present addresses, employment details, etc.
Nevertheless, online management has presently emerged as the most preferred option for lending, banking, investing, and other financial activities. With this internet revolution, the KYC verification procedure has also become online. This process is referred to as eKYC.
What is eKYC and how NBFCs let you complete the eKYC process?
The digital process of validating a customer’s identity and legitimacy by financial institutions is known as eKYC.
The NBFCs get permission from UIDAI to use Aadhaar cards for the eKYC process. They provide their customers with a safe window for the online KYC process on their portals. After accessing the online KYC application form, individuals need to mention their personal information and the 12-digit Aadhaar number on respective boxes.
NBFCs generally give two options to their customers for verification, as mentioned below:
- Through biometrics
In this option, individuals must undergo an iris or fingerprint scanning process after filling in the 12-digit Aadhaar number.
- Through OTP
It is a relatively easier option that only takes individuals to mention the OTP they receive in their contact numbers. This is why they must have the mobile number that is registered with the Aadhaar card.
Why do NBFCs go for the eKYC process?
Here are some of the reasons for which NBFCs go for the online KYC verification process:
- Faster verification
It lets NBFCs enhance speed and convenience for their customers. They do not need to go to physical branch offices for the authentication process.
- Secure authentication
All the data transferred during this eKYC verification process is encrypted, negating the chances of tampering with confidential information.
- Paper-free process
Individuals do not need to submit photocopies of their physical documents, including PAN cards, voter ID cards, Aadhaar cards, etc. Simply by mentioning the OTP or undergoing biometric authentication, they can complete the KYC verification.
This way, through the eKYC process, NBFCs reduce the time and effort of their customers and provide their financial services quickly. For this reason, individuals opting for a loan can significantly hasten their documentation process.
In this regard, individuals seeking emergency credit can go for a personal loan from reputed financial institutions. It is an unsecured credit facility that reduces the hassles of keeping any property as collateral. They also should be aware of various other advantages of this mortgage-free loan.
Features and benefits of a personal loan
Here are the notable features of a personal loan:
- End-usage free credit
Lending institutions do not attach any end-usage restriction on the borrowed capital. Individuals can leverage the entire amount as they prefer. It lets them manage any personal, commercial or professional objectives for which they require sufficient funds. Alongside, they may also need to be aware of how a short-term personal loan can help them during an emergency.
- Flexible tenor
Individuals get the option to choose any tenor between 12 to 60 months to repay their debt. Nevertheless, they must know that in a shorter repayment period, they get a higher EMI which may lead them to financial stress. Contrarily, a longer tenor can also be unpreferable because it increases the interest outgo. This is why they need to know how to find the right personal loan tenor that works for them better.
- Quick loan disbursal
Since a personal loan is a collateral-free credit facility, they do not need to get engaged in the inconveniences of arranging their property-related documents. Lenders also do not waste time validating the mortgaged assets. Further, the eKYC process comes as another boon in quickening the loan application process.
In this regard, they also need to know some easy approval tips for personal loan. It will help them avoid the chances of rejection from the lender’s end. This way, they can get the emergency credit quicker.
- Easy loan management
Various NBFCs also digitalise their loan application, repayment, account management and other associated processes through their dedicated portal or app. For example, Bajaj Finserv has its customer care portal – Experia and its dedicated ‘Bajaj Finserv’ mobile app. Customers can conveniently apply for a loan or check the Bajaj Finserv loan application status through the app or portal.
Nevertheless, to leverage all these benefits, they must be aware of how to apply for a personal loan. It will help them avoid possible errors that can delay their loan application process.
Apart from this, some financial institutions provide pre-approved offers to their customers. Accepting these special deals on financial products, such as personal loans, business loans and credit cards, they can expedite their loan application process. They can easily check their pre-approved offers by mentioning their names and contact details.
In conclusion, eKYC significantly expedites the customer authentication process. Individuals only need to mention their personal details and undergo the OTP/biometric-based authentication process to complete their KYC. This way, they can quickly get their required financial services from NBFCs.