What is Video KYC, and How Can You Avail it for a Personal Loan?

Video Know Your Customer (Video KYC) is a method for verifying customer identity through online video calls, eliminating the need for physical visits to a financial institution. This process has changed the Personal Loan application process, allowing borrowers to apply from home or anywhere else. With Video KYC, you can complete the verification process without physical paperwork or travel, making it easier to obtain Personal Loans. This contactless process is secure, efficient, and designed for convenience, leading to faster approvals for Personal Loans.

What is Video KYC?

Video KYC, or video-based customer identification process (V-CIP), is an online video KYC method. It involves taking a live picture of the customer using a webcam or smartphone camera, along with a digital copy of their Aadhaar card. It's used to verify identity for financial transactions like Personal Loans.

 

How Does Video KYC Work?

Video KYC works by connecting you with a representative over a secure video call. During the call, the representative verifies your identity and checks your documents, such as Aadhaar and PAN cards. The process is designed to be seamless and quick, usually taking just a few minutes.

Read Also- What is KYC - Different Types of KYC

Benefits of Video-KYC

Here are some key benefits of Video KYC for Personal Loans:

• Faster KYC Completion: Video KYC verification process, allowing lenders to complete identity checks within minutes. This leads to quicker loan approvals and reduced waiting times for borrowers.
• Remote Customer Onboarding: Video KYC enables customer onboarding without requiring physical visits to a branch. Users can complete the process from the comfort of their homes or any location with internet access.
• Superior Customer Experience: By being contactless and convenient, Video KYC enhances customer satisfaction, offering a smoother, stress-free experience compared to traditional in-person KYC methods.
• Increased Accessibility: Video KYC promotes financial inclusion by making it easier for people in remote or underserved areas to apply for Personal Loans from top lending institutions like Hero FinCorp, bridging the gap between urban and rural financial services.

Required Documents for Video KYC

For Video KYC, you'll need specific documents and equipment:

• Identification Documents: Aadhaar card, PAN card, or another valid ID.
• Supporting Documents: Proof of employment or income, bank statements.
• Technology Requirements: A device with a webcam, such as a smartphone, laptop, or desktop.

Read Also- Documents Required for Online KYC and Document Preparation before Loan Application

Important Guidelines for Video-KYC

Keep these important guidelines in mind when using Video-KYC:

• Use Authentic Sources: Only click links from known and trusted sources.
• Do Not Share Sensitive Information: Genuine lenders never ask for passwords.
• Verify the Identity of the Officer: Before showing documents, ask for the caller's identity proof.
• Avoid Third-Party Video Apps: RBI restricts the use of apps like WhatsApp or Skype for video KYC.
• Ensure Secure Internet Connection: Use a reliable and private network to prevent security issues.

Steps in the Video-KYC Process

Video KYC offers a convenient and secure way to verify your identity for Personal Loans. Here's a step-by-step process to enable the Video-KYC process:

1. Prepare for Video KYC: Before you start, ensure you have a device with a webcam or front-facing camera, like a smartphone, laptop, or desktop. Also, ensure a reliable internet connection and a well-lit environment with minimal background noise. Gather all required identification documents like Aadhaar and PAN cards.
2. Complete Aadhaar-Based eKYC: Begin by providing your Aadhaar number using the link given by the lender. A One-Time Password (OTP) will be sent to your registered mobile number. Enter the OTP to verify your Aadhaar details.
3. Receive Video KYC Joining Link: After completing eKYC, the lender will send you a joining link via email or SMS to connect with the KYC officer. Keep an eye on your inbox or message alerts for this link.
4. Schedule the Video Call: If required, you may need to schedule a time for your Video-KYC session based on the lender's business hours and the availability of KYC officers. Make sure to choose a time when you can be undisturbed.
5. Join the Video Call: Click the joining link to connect with the KYC officer at the scheduled time. Ensure your camera and microphone are working properly before starting the call.
6. Show Identification Documents: During the video call, the KYC officer will ask for your identification documents, such as Aadhaar and PAN cards. Hold them up to the camera for clear visibility. The officer may also ask you to show other supporting documents, like proof of employment or income.
7. Capture Live Photo: The KYC officer will take a live picture of you for identity verification. Make sure your face is well-lit and clearly visible during the capture.
8. Answer Questions: The officer may ask questions to verify your identity and ensure you are the same person mentioned in the documents. Answer these questions accurately.
9. Complete the KYC Process: Once you complete video kyc, the lender will review your application and notify you of the approval or rejection of your KYC application. This process usually takes a few minutes.
10. Approval and Disbursement: If your KYC is approved, the lender will proceed with the Personal Loan application. Once approved, the loan amount is disbursed to your account, completing the process.

Difference Between Digital KYC and Video KYC

Digital KYC and Video KYC have some key differences. Digital KYC is based on online verification using digital documents without live interaction. It often involves uploading scanned copies of documents and electronic signatures.

Video KYC, on the other hand, involves real-time video interaction with a KYC officer. It includes live location tracking and capturing a live photo. This approach adds a layer of security and allows lending institutes to verify customer identity more accurately.

Read Also- What is e-KYC : Meaning, Eligibility and Process

Conclusion

Video KYC has transformed the Personal Loan process, making it faster and more convenient. This technology-driven approach eliminates paperwork and in-person visits, offering a secure, contactless experience. With Video KYC, you can complete your Personal Loan application from home, enjoying a seamless verification process. It saves time, reduces costs, and promotes financial inclusion.

At Hero FinCorp, the Personal Loan application is online. Eligible applicants can apply for an instant cash loan of up to Rs 3 Lakh from the Hero FinCorp loan app at competitive interest rates of up to 25% and flexible repayment tenure of up to 36 months.

Frequently Asked Questions

1. Is Video KYC secure?

Yes, Video KYC uses encryption and other security measures to protect customer data during the process.

2. Can Video KYC be used for all types of transactions?

Usually, the video KYC is used for financial transactions like Personal Loans and bank account openings.

3. Can we do Video KYC on Mobile?

Yes, Video KYC can be done using a mobile phone, provided it has a front-facing camera and internet access.

4. What if video KYC is not done?

If Video KYC is not completed, your loan application may get delayed or rejected.

5. Is video KYC available on Sunday?

Video KYC availability depends on the lender's schedule. Some lenders may offer it on Sundays, while others may not.

6. What Documents are Required for Video KYC?

A. To complete the KYC (Know Your Customer) process, you need to provide the required documents for KYC. These include an Aadhaar card, PAN card, passport, voter ID card, and driver’s license. Additionally, utility bills such as electricity, water, or gas bills can be used as proof of address.

 

Disclaimer: The information provided in this blog post is intended for informational purposes only. The content is based on research and opinions available at the time of writing. While we strive to ensure accuracy, we do not claim to be exhaustive or definitive. Readers are advised to independently verify any details mentioned here, such as specifications, features, and availability, before making any decisions. Hero FinCorp does not take responsibility for any discrepancies, inaccuracies, or changes that may occur after the publication of this blog. The choice to rely on the information presented herein is at the readers discretion, and we recommend consulting official sources and experts for the most up-to-date and accurate information about the featured products.