In today’s fast-paced digital world, the process of verifying customer identity has evolved significantly, leading to the emergence of video KYC (Know Your Customer). This innovative method streamlines the traditional KYC process, making it more accessible and efficient. Video KYC for personal loan applications is a prime example of how this technology can be extremely beneficial in real time. It allows customers to complete their KYC verification process remotely and securely through an online video KYC system.
This particular method not only simplifies the application process but also accelerates the loan approval timeline. This leads to better customer convenience and operational efficiency, making the process of obtaining a personal loan smoother and more user-friendly.
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When you’re seeking financial services like applying for a personal loan or opening a new account, financial institutions ask you to complete video KYC. This doesn’t only help them verify your identity but also help you calculate the risk associated with providing you a loan, helping you get the best terms of borrowing.
KYC is a critical component in the financial sector, ensuring customer identity verification and preventing fraudulent activities. With the advent of video KYC loan application process has become more streamlined and efficient.
Implementing the video KYC verification process significantly reduces the operational costs for financial institutions. Traditional KYC methods involve physical documentation and in-person verification, which are resource-intensive. Online video KYC, on the other hand, minimises these expenses, making it a cost-effective solution.
Complete video KYC processes save considerable time and effort for both customers and financial institutions. Customers can complete their KYC from the comfort of their homes, while lenders can process applications faster, leading to quicker loan disbursement.
The convenience offered by video KYC for personal loan applications cannot be overstated. Customers no longer need to visit a bank or wait in long queues. They can complete the necessary verification steps online, making the process user-friendly and accessible.
The video KYC verification process is not only convenient but also much faster than traditional methods. It accelerates the verification process, enabling quicker decision-making and loan approval times.
What is video KYC’s most significant advantage is perhaps its ability to reduce errors. Automated checks and digital recording of the verification process minimise the chances of manual errors, ensuring a more accurate and reliable KYC process.
Also Read: Fixed vs. Floating interest rate on Personal loan – Which is Better?
Step-by-Step Video KYC Process for Availing Personal Loan
The video KYC verification process for personal loans is a streamlined and efficient method that has transformed the traditional KYC process. However, different financial institutions have different sets of KYC processes. Here’s a step-by-step breakdown of the standard procedure:
Also Read: Personal Loan Disbursement Process – How it Works?
To successfully complete the video KYC verification process for a personal loan, certain requirements must be met. These are essential to ensure a smooth and efficient online video KYC experience:
Understanding the potential challenges and limitations of an online Video KYC can help you stay prepared so you can complete your KYC process without any hassles.
To be able to complete the online video KYC process smoothly, you need to be in an area with stable internet connection. Internet or connectivity issues can be a barrier when trying to complete your video KYC.
Some people might not feel comfortable with doing a video KYC due to privacy reasons. It’s important to give the customer a clear understanding about the reason behind the same.
Whether it’s due to an error in the Video KYC system or a lack of capability of handling large volumes of KYC requests, you might stumble upon some technical errors.
When engaging in the video KYC verification process for a personal loan, it’s crucial to adhere to certain precautions to ensure security and compliance.
Also Read: Personal Loan Rejection: Top 5 Reasons & Recovery Tips
The online video KYC process offers numerous benefits, making it a preferred choice for both customers and financial institutions.
The video KYC verification process significantly accelerates the KYC completion time. The efficiency of video KYC in speeding up customer verification and loan processing, making credit more accessible to individuals.
Online video KYC contributes to a paperless and eco-friendly process. This approach aligns with sustainable banking practices, reducing the carbon footprint and administrative burdens associated with physical documentation.
The convenience of video KYC is highlighted by its ability to facilitate remote customer onboarding. This way, any individual can get instant access to credit anytime, anywhere.
The video KYC verification process not only simplifies the customer’s journey but also ensures a more secure and reliable verification.
While there might be some challenges associated with the Video KYC process, digitalization has found its way to overcome them and make this process even more seamless for users.
The entry of Artificial Intelligence and Machine Learning is transforming the fintech landscape each day. Features like real-time monitoring of documents has made online KYC process quicker and easier.
Integration of the KYC process with biometric technologies includes fingerprint, facial and even voice recognition. This doesn’t only speed up your KYC process but also makes the procedure more secure.
Blockchain Technology can significantly reduce time taken to carry out authenticity checks required for completing KYC.
The video KYC verification process marks a significant advancement in the financial sector. It’s not just about embracing digital transformation; it’s about enhancing security, efficiency, and customer satisfaction.
The online video KYC method, with its rapid onboarding, paperless transactions, and remote accessibility, is a game-changer. It addresses critical challenges of our time, from reducing fraud to promoting financial inclusion. As we move forward, the integration of complete video KYC in financial services will continue to reshape and redefine how we manage identity verification, setting new benchmarks for convenience and security in the digital age.
No, Aadhaar is not mandatory for video KYC. Other officially recognised documents can be used, but Aadhaar streamlines the video KYC verification process. However, you may have to verify the mobile number linked to your Aadhaar number.
No, video KYC cannot be conducted via FaceTime or WhatsApp. Financial institutions use secure, dedicated platforms for online video KYC.
If internet issues occur, the video KYC session may need to be restarted. Consistent connectivity is crucial for a complete video KYC process.
Traditional KYC involves physical verification, while video KYC is done remotely via video call, making it a more convenient online video KYC method.
After completing KYC, apply for a loan through the lender’s platform. Video KYC simplifies and speeds up this process.
Video KYC approval typically takes a few minutes to a few hours, streamlining the video KYC verification process for faster service.
You’ll receive a notification from the financial institution once your video KYC is approved, confirming the successful completion of the video KYC verification process.
Yes, an original PAN card is often required for identity verification during the video KYC process.
During video KYC, questions about personal details, document verification, and liveness checks are asked to ensure a complete video KYC process.
Yes, you need to complete an online KYC process to get access to your personal loan. This is required to confirm your identity and carry out the necessary authenticity checks.
As long as you are taking financial services from an authentic bank or NBFC, the personal information stored is going to be completely safe and secured.
No, there are no additional charges associated with doing a video KYC for personal loans.
If the financial institution offers services to non-residents, you can complete the Video KYC from anywhere as the process is online.
The availability of Video KYC depends on the lender and their application process for personal loan.