What is Video KYC & How You Can Avail it for Personal Loan?

With RBI allowing Indian lenders to onboard new customers via the video KYC process, it has enabled a 100% digital ecosystem where users can make financial transactions seamlessly from the comfort of home. 

Compared to in-person KYC verification, the video KYC verification process is completely paperless and contactless. Let’s learn more about the video KYC and understand how does it work?

What is Video KYC?

Also known as video-based customer identification process (V-CIP), video KYC is a real-time online digital KYC verification process used to establish the real identity of the customer. It is done by taking a live photo of the customer via the webcam of the desktop/laptop or front-facing camera of the mobile phone along with the submission of a digital copy of AADHAR for PAN Card.

The video KYC process is more technologically advanced and accurate. It requires advanced technological tools for live location tracking of the user, consent-based audio-visual interaction and secure storage of the data. Apart from these requirements, the lender also requires trained manpower to conduct a video KYC verification process. The good news is, that for borrowers, the process has become much simpler. Now, they can complete their KYC verification without needing to step into a branch!;

Must Read: How Personal Loan Verification Process Works?

Must Read: How Personal Loan Verification Process Works?

Steps for Video KYC Process

Customers applying for an instant personal loan on the lender’s website are required to complete the following steps for video KYC.

• In the first step, you need to complete the AADHAR-based eKYC procedure while filling up the online form with basic details. Also at this step, you need to schedule a video call with the lender.
• In the following step, an automated confirmation on your registered mobile and email will be sent along with a joining link
• The link will redirect you to the video KYC application and connect to an official who will conduct the video KYC verification process. Please note that depending on your lender’s business hours and availability of video KYC officers, it is possible that your appointment may get scheduled for a later date/time.
• When you log in at the scheduled slot, the officer will now verify the details of the PAN and other documents and capture your live picture
• Through consent-based audio-visual interaction, the official will ask a series of questions as per the lender’s internal KYC/AML policy
• Using the latest AI-powered face recognition technology, the officer will now match your photograph on the documents uploaded with the live photo captured during the KYC exercise
• Simultaneously, the officer will ask you to physically display the KYC documents over the video call before passing or rejecting the KYC application

The internal risk management team of the lender will now review the details and process the KYC application accordingly, following which you will be notified whether the KYC activation is successful or not.

As per the latest RBI guidelines, the video KYC is equivalent to full KYC and lenders can offer an instant loan as per the personal loan eligibility of the customer.

Documents Required for Personal Loan

When applying for an instant personal loan, the following documents are required:

• PAN Card
• All KYC documents such as Aadhaar Card, Voter ID or Driving License
• Employment proof and Last 3 months salary slips or income proof
• Last 6 months bank account statement or current account statements (for self-employed)

For self-employed applicants, the documents required for personal loan include a business registration certificate, financial statements and other documents.

Precautions While Undertaking Video KYC Process

With online frauds and scams are on the rise nowadays, therefore, while performing video KYC, you need to undertake the following precautions:

• Click the joining link only from authentic sources. RBI also restricts the use of third-party applications such as Whatsapp, Facetime, Skype for the video KYC process.
• During the video KYC process, at no time, AADHAR or its number should be displayed during the video call. The AADHAR authentication is already done by the lender in the first step of the whole process.
• Verify the identity of the officer before starting the video KYC exercise by asking to show the identity card or noting down the employee ID
• Please note that banks and lenders NEVER ask for passwords. Please refrain from giving these away via text / email / any other method.

Requirements for Video KYC Verification Process

The following things will be required for video KYC application:

• A smartphone, laptop or desktop computer with a webcam
• Uninterrupted good internet connection
• Well lit room with a plain background for video call
• Blank sheet of paper and a black pen
• All KYC documents and other valid documents

Apart from the above requirement, the customer should be present in India at the time of conducting the video KYC verification process and should not use VPN, proxy or static IP during the whole exercise, as it could result in rejection of your KYC application.

Must Read: How to Get a Personal Loan Using Aadhar Card & PAN Card

Must Read: How to Get a Personal Loan Using Aadhar Card & PAN Card

Advantages of Video KYC Verification Process

1. Faster KYC Completion: The whole KYC data recording process is completed within 5 minutes and that too without taking out time to visit any branch office of the lender.
2. Completely Paperless: As the process is completely paperless and digital, there is a huge saving in terms of cost and time taken to process the KYC application.
3. Remote Customer Onboarding: Can onboard customers where the lenders do not have a physical presence through the branch office and offer its services.
4. Superior Customer Experience: Provides an end-to-end customer engagement and onboarding experience