RBI launches pilot for easy loan availability : RBI has launched a pilot on a public tech platform to issue loans without hassle. With its help, loan applicants can get loans in minutes.
New Delhi: The Reserve Bank of India (RBI) has launched a public tech platform to ease access to loans. Through this, the loan will be issued to the applicant without any hassle, low cost and time. The purpose of the public tech platform is to easily provide digital information for loans to loan applicants with issuance of loans in a matter of minutes. According to RBI, the public tech platform will also provide services related to Aadhaar, PAN, land documents.
What is Public Tech Platform for Hassle Free Loans?
Public Tech Platform, an end-to-end digital platform, has been launched with the aim of frictionless i.e. easy and hassle-free loan issuance. It has been developed by Reserve Bank Innovation Hub, a wholly owned subsidiary of the central bank. The platform incorporates standards such as open architecture, open application programming interface (API) to create an easy loan infrastructure and connect all players in the financial sector in a ‘plug and play’ model.
Suparno Bagchi, COO of fintech company Balancehero India, said that the central bank’s public tech platform simplifies the integration of critical financial data through open APIs and increases operational capacity. It will centralize the information of potential loan applicants on a unified platform, streamlining the process. With the active participation of banks, NBFCs, fintech firms and startups, this strategy will facilitate seamless credit and payment solutions. The ‘plug and play’ model encourages innovation, thereby increasing access, cost reduction and capacity building for the lending sector.
How will it help in loan process and disbursement?
A loan applicant needs complete information before sanctioning any credit or loan. At present, the data required for sanctioning a loan or credit is available from various organizations such as central and state governments, account aggregators, banks and credit information bureaus. This has hindered the timely delivery of rule-based loans. It takes several days, a week or even a month to issue a loan. To make this process easier, the central bank has come up with a public technology platform where the loan applicant is given access to the digital information required for the loan and the loan can be issued faster.
Loan processing cost and time will be reduced
The central bank said it intends to launch the platform as a pilot project in a calibrated fashion in terms of access and use cases to information providers. The RBI believes that this will reduce the cost of lending and help disburse funds faster. During the pilot programme, the platform will focus on issuing Kisan Credit Card Loans, Dairy Loans, MSME Loans, Personal Loans and Home Loans of up to Rs 1.6 lakh per loan applicant.
These services will also be available from the public tech platform
Services such as Aadhaar e-KYC, onboard state governments of Madhya Pradesh, Tamil Nadu, Karnataka, Uttar Pradesh and Maharashtra, land records, satellite data, PAN verification, Aadhaar e-signature, bank account will also be available through the public tech platform.
