SBI Yono to Soon Offer Two-Wheeler Loans, High-Value Personal Loans with No Paperwork
SBI YONO, an integrated digital banking mobile app by State Bank of India, is preparing to offer quick loans in two-wheeler and express credit categories. The largest Indian bank offers two-wheeler loans up to Rs 2.5 lac and express credit loans up to Rs 20 lakh outside of the app. After the launch of the upcoming service, SBI consumers will be able to get these loans from the mobile app itself. However, the personal loan amount offered as express credit loans through the Yono app could range from Rs 5-10 lakh, as per a report by Business Today.
Currently, SBI Yono offers small-sized loans with an average of 2.5 lakh. Under this scheme, the customers do not need to visit the bank’s branch and there is zero physical paperwork. However, these loans are offered only to a category of customers pre-selected by the bank at the moment. These loans are based on customers’ past credit history, repayment track record and spending behaviour. Pre-approved personal loans, the first credit feature launched by SBI’s mobile app, are very popular as loans worth more than Rs 21,000 crore were disbursed in 2020-21.
As per Business Today, SBI Yono now plans to add the two retail loans to its product basket. For hassle-free processing of these loans, the bank needs a system in order to process documents digitally. SBI is already testing a Digital Document Execution(DDE) system, which includes digital signatures and other digital infrastructure, will make use of the e-stamping system that is already available in 22 states and union territories. The bank plans to offer these loans to new SBI customers as well.
Soon SBI is launching its own Account Aggregator system, which will provide consumers with instant and easy access to credit history and other financial information. The Account Aggregator (AA) framework was approved by the Reserve bank of India in 2016, to facilitate sharing of financial data for individual or enterprise’s easier access to information such as credit history, deposits, investments and others using a single window.
SBI’s mobile app platform has generated leads for loans worth Rs 10,000 crore, the bank claims.