The ease of doling out digital loans has reached a new high with Muthoot Microfin launching instant loans to empower customers with quick access to funds. Termed “Suvidha Loan”, it enables customers to obtain a loan amount ranging between ₹10,000 and ₹30,000 within a 30-minute timeframe following the loan application. This service is accessible through the Mahila Mitra App, the company's comprehensive mobile application platform for customers.
Currently, 13 lakh customers of the company utilize the Mahila Mitra app to service their loans and avail digital services. Muthoot Microfin reported 34 per cent of its loan repayments were facilitated through digital means this year, which were incentivized through payback schemes. The idea behind coming out with these small loans was to empower customers with the use of digital infrastructure and services.
Sadaf Sayeed, CEO, Muthoot Microfin said, “Muthoot Microfin has conceptualized Suvidha Loan to empower microfinance customers, strengthening our commitment towards digital inclusion of rural India. This enables customers to borrow at their discretion and convenience without being dependent on a loan officer or joint liability group. With the use of our in-house created ‘Mahila Mitra’ app and credit scorecard, together with the integrated household-level credit bureau, digital KYC, and penny drop verification, we can analyze a customer on 40 different parameters in a matter of minutes. We can decide on a loan within 15 minutes and disburse it in 30 minutes.”
Suvidha Loan uses secure document execution methods such as virtual signatures, OTP verification, and geo-coordinate confirmation, making the customer borrowing process seamless. For loan repayment, there are flexible options such as monthly or weekly instalments, accommodating the varying needs and preferences of customers. The entire process from loan disbursement to loan collection will be paperless and conducted digitally via the app, with minimal manual intervention.
Udeesh Ullas, COO, Muthoot Microfin said, “With the help of big data analytics, AI, and Machine learning, we have developed a deep understanding of the credit behaviour of our customers. We can now make more accurate and quick data-driven decisions on our loans. Suvidha Loans will increase our customer retention and help us reach more people.”
Technology that helps customers focus on their needs and behaviour is at the heart of every innovation. The ability and intent to provide funds swiftly sans the need to fill in long loan applications and queue outside lenders’ offices highlight the “Digital India” dream of every Indian. By providing swift, digitally driven access to funds, lending companies are now enabling their customers to navigate their financial requirements with confidence and convenience.
