Last Wednesday, Bharati Financial Inclusion – the non-banking finance company launched Aadhaar -based instant cashless loan disbursal service.
The company launched this service to the members of joint liability groups in Devgaon – a village located 60 km away from Jaipur.
Bharati Financial has come up with this new service with the help of digital technology, which is first of its kind in the field of micro-finance. Shortly, Bharati Financial will unveil this service nationwide.
Addressing The Hindu BusinessLine, KV Rao, the Chief Operating Officer of Bharat Financial Inclusion said “This is based on a pilot we conducted in Odisha during September-December 2016. The complete roll-out across all our locations in the country will be over by June 2017”.
Bharati Financial will process instant loans to consumers after verifying the following – Aadhaar-based identity, credit bureau data, e-KYC norms and eligibility criteria of the applicants.
As reported by The Hindu BusinessLine “It took less than seven minutes for 30-year-old Guddi Devi to apply and receive ₹29,565 loan for a new grocery shop she intends to set up”.
Both Bharati Financial and borrowers can benefit a lot from this Aadhar-based cashless loan disbursal process. Now, borrowers need not visit banks to avail a loan. The service will benefit the stakeholders as well. With reduced time taken in loan disbursal, this new service will benefit nearly 66 lakh Mudra loan beneficiaries throughout the country. It will help reduce the operational cost of the lender. Bharati Financial is expecting a 40% cut in its cost-to-income ratio in the coming years.
The service will eradicate the risk of fake customers as well.