KYC, a.k.a. Know Your Customer is a mandatory procedure to be conducted by banks and NBFCs at the time of customer onboarding. For decades now, if a bank or NBFC had to offer a personal loan to a customer, the verification compliances had to be met by a verification officer who visited the premises of potential customers. During the lockdown when physical contact was prohibited, these financial institutions could not fall back upon their traditional ways of doing business – and that’s how Video KYC entered the finance world.
But what is Video KYC?
Video KYC is also called V-CIP, which stands for – video-based customer identification process. The officials of the institutions will schedule a consent-based online video call with the customer, which you can attend via a laptop or a smartphone. Similar to physical interaction, you will be required to present your Aadhaar and PAN card. Using Artificial Intelligence technology, your face identity is matched with the documents available with the lender. Video KYC is convenient, safe and quick. With technology-based onboarding, your personal loan will reach you faster as your personal loan eligibility requirements will be fulfilled much quicker.
How does Video KYC work? – The entire process
Step 1 – Application
When you apply for a loan online, you will be asked to provide your Aadhaar number and complete the Aadhaar-KYC. This KYC will be done on the lender’s online interface, and you will also receive an OTP to complete this step of verification.
Step 2 – The meeting link
After verifying your identity, the lender will email and SMS a meeting link to you for the Video KYC. You must attend the meeting at the scheduled time and connect with the lender’s official.
Step 3 – The meeting with the representative
On the call, the lender’s representative will ask you some questions which you must answer truthfully. Make sure that your GPS is on to enable the official to track your live location. The authority will capture a photo for their records, marking the end of the call.
Pointers to ensure a successful meeting
1) Ensure that you are in a calm and silent place and have no background disturbance.
2) Make sure that your device’s camera works and that your face is appropriately visible during the call.
3) You must be in a place with a stable internet connection.
4) Keep all the original documents handy for a smooth verification check.
5) Keep a notepad and a pen handy.
Before you join the meeting link, double-check the sender’s identity. You don’t want to reveal your identity details to a fraudster. To gain confidence and for your security, ask for the official’s ID and note down their employee code. Please don’t be naive to share password details, as the official will not ask for them.
How can Video KYC help you?
In these trying times, you cannot afford to miss critical business opportunities. Physically meeting with the lender’s official could be tight on your schedule, but Video KYC is here to eliminate the time-consuming requirement. You can get done with the process in minutes, anywhere, with an internet connection.
There is no excuse to shy away from a personal loan now! But before applying for one, compare personal loan interest rates and choose wisely. Adding to your ease, you can now use the personal loan EMI calculator available online to track your repayment cycle seamlessly.
Summing up
You have to thank the RBI for the new-age tech implementation. It is a win-win for lenders and customers, as the onboarding time has reduced substantially. Hassle-free and safe services of the finance industry will change the future for India.