HDFC Bank to introduce 10-second personal loan service for everyone by the end of the year

HDFC Bank to introduce 10-second personal loan service for everyone by the end of the year

New Delhi: India’s largest private sector lender, HDFC Bank, aims to introduce the 10-second loan service for everyone, including those who do not have an account with the bank. The bank pioneered the 10-second loan paradigm for existing customers and has been able to do so for the past six years.
“Having created the pleasure of the service for our existing customers, we plan to introduce the product to the broader personal loan market by the end of the year,” said Arvind Kapil, Head of Retail Assets, at Economic Times.

In addition to providing loans to everyone in just 10 seconds, HDFC Bank is also expanding its offerings to self-employed workers who were not previously considered creditworthy. Now, the private lender is looking to increase loan exposure to self-employed clients who make up just 5% of the total market.

The private lender, has set up an infrastructure base in 650 districts in India to disburse unsecured loans, has 12 million pre-approved loan customers across all products.

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Personal loans made up the largest share of retail loans at Rs 1.48 lakh crore and 10-second loans made up the largest share at the end of June 2022.

Kapil also plans to target and expand the customer base of freelancers. It manages retail assets of over Rs 5.6 lakh crore across various categories. It is worth mentioning here that the overall loan penetration in the self-employed segment of the market is only 5%, according to HDFC Bank management.

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According to a Macquarie report, HDFC Bank has around 12 million pre-approved loans, which will be used for mortgage cross-selling. Currently, mortgages are granted in 440 districts which will be further expanded.

Meanwhile, HDFC Bank opened its first all-female branch in the northern region of Kerala in Kozhikode last month. The branch, located at Cherootty Road, the district’s merchant hub, will have 4 female bankers.

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