On December 28, Bank of Baroda(BoB) launched Digital Lending Platform(DLP), to allow retail loan seekers to get loans in a digital way through a paperless process.
It provides ‘in-principle approval’ to the loan seekers in 30 minutes for home, car and personal loans without human intervention through multiple channels namely website, mobile banking, internet banking and social media.
‘Online Loan against Fixed Deposits’
The bank also offers ‘Online Loan against Fixed Deposits(FD)’ through Digital Lending Platform. This allows FD customers to avail loan against their Online FD instantly through mobile banking and net banking facility.
i.The bank, with the launch of DLP, expects that the personal loan disbursements will be fully digitized followed by Micro, Small, Medium Enterprise(MSME) and Agriculture disbursements.
ii.DLP will help BoB to double the non-corporate book by 2025.
i.Currently, BoB to its existing selected customers offers pre-approved Micro Personal Loan to do shopping through offline/online partner channels and the payment can be made later in Equated Monthly Installments(EMIs).
ii.The customers also have an option to avail the amount into their Savings bank account and convert it into EMIs (from 3 to 18 months) through m-Connect+ (Bank’s mobile banking app) in 60 seconds.
i.BoB by adopting digital first lending approach across retail, MSME and agriculture segments, envisages to develop the growth of banking industry by 1.50 times at Compound Annual Growth Rate(CAGR) of 16% over next 5 years.
ii.The bank also envisages in over 5 years, the digital share of disbursement in retail lending will grow to 74%
Recent Related News:
On October 1, 2020 State Bank of India (SBI) and Hindustan Unilever (HUL) signed a Memorandum of Understanding (MoU) to provide Digital Payment Solutions and Financing solutions to HUL’s retailers and distributors.
About Bank of Baroda:
The Bank has sponsored 3 Regional Rural Banks(RRBs) namely Baroda Uttar Pradesh Gramin Bank, Baroda Rajasthan Kshetriya Gramin Bank and Baroda Gujarat Gramin Bank.
HeadOffice– Vadodara(earlier known as Baroda), Gujarat
Managing Director(MD) and Chief Executive Officer(CEO)– Sanjiv Chadha
Established– 20 July 1908
Tagline– India’s International Bank