Bankers' Club

Next time you walk in to ATM for cash withdrawal, the ATM Machine may offer you a personal loan. With the help of technology for data analysis, Banks are now pre approving small value personal loans, which can be disbursed through ATM machine. Banks have been providing pre-approved loans through interest banking and other means but for that customer was required to visit the branch and sign documentation. In this case customer is required to agree with the terms and conditions and selecting the ‘Agree’ button at ATM will transfer the loan amount in customers saving account.

There are average 200-400 transactions on Bank ATMS, which the banks are now thinking to use to push credit and insurance products.

HDFC bank had automated personal loan approvals by using analytics tool that track the customer’s history and the credit score and, based on the analysis automatically approve a loan. This was being used by HDFC bank for insta loan (a ten second loan) with click of a button on its netbanking website. Now the bank plans to extend this facility through its ATM network.

SBI has invited tenders to rollout the personal loan through ATM service in its network of 50,000 ATMs.

There is a huge potential for personal loans segment and other private and public sector banks are expected to follow the steps taken by HDFC and SBI