By the end of the year, HDFC Bank will provide everyone a 10-second personal loan service.
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The 10-second lending service would be made available to everyone, including people without bank accounts, according to HDFC Bank, the largest private lender in India.
Over the past six years, the bank has been able to provide 10-second loans for current customers, becoming a paradigm pioneer in this area.
Arvind Kapil, head of retail assets, told the Economic Times that “after creating service joy for our existing customers, we want to release the product to the larger open market for personal loans by the end of the year.”
In addition to providing loans in just 10 seconds to everyone, HDFC Bank is also increasing the number of self-employed individuals to whom it previously extended credit. The private lender is currently aiming to increase lending exposure to self-employed clients, who make up just 5% of the total market.
The 12 million pre-approved loan customers across all products are served by the private lender, which has established an infrastructure base across 650 districts in India to distribute unsecured loans.
At Rs 1.48 lakh crore, personal loans made up the highest portion of retail loans, and at the end of June 2022, 10-second loans made up the biggest portion.
In addition, Kapil intends to expand his marketing efforts to the self-employed customer group. He oversees retail assets totalling more than Rs. 5.6 lakh crore in a number of different categories. The self-employed market segment only has a 5% loan penetration rate overall, according to HDFC Bank management, which is worth emphasising in this context.
A Macquarie report claims that HDFC Bank has 12 million pre-approved loans that it would utilise to cross-sell mortgages. 440 districts already offer mortgages; this number will increase.
Last month, the Kozhikode district of north Kerala saw the opening of HDFC Bank’s first branch exclusively for women. There will be four female bankers working at the branch on Cherootty Road, the district’s commercial centre.
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