How to Avail Video KYC for Personal Loan & Why is it Important?

RBI introduced KYC (Know Your Customer) in the year 2002 as a mandatory procedure for all banks. KYC is a verification of the customer’s identity and address. It prevents banks from frauds and illegal activities. KYC was previously done through personal interaction only.

So what is a video KYC? It is a video-based digital process of customer identification. A live photo is taken via webcam. You also need to present your documents at the same time. Your earlier submitted documents are verified with the data collected during video KYC. This process becomes more accurate by using live location tracking and audio-visual interaction. We are here to describe the process and documentation required for video KYC along with its benefits.

Step-by-step Procedure to Complete Your Video KYC

• You will find an online form on the website of your bank or NBFC. Fill that form with the required details.
• You will receive confirmation and a joining link to the video KYC application on your mobile and email address.
• By clicking on the link, you will connect with your verification officer. You can be given a later date or time according to the working hour of the concerned firm.
• When you get connected, the officer will ask you to present your documents. And your live picture will also be captured.
• The officer may ask some other questions also. It will be a consent-based audio-visual call.
• The official will match your live photo taken during the video KYC verification process with your picture on your documents. This will be done with the help of AI-based face recognition.
• The officer might want to see your documents one last time before ending the video KYC.

Documents for Video KYC for an Instant Personal Loan

• ID proof, e.g., Aadhaar Card, Voter ID, or Driving License.
• PAN Card
• For salaried people:-
• Salary slip of last 3 months or any other income proof.
• Appointment letter or any other employment proof.
• Savings/salary account statement of last 6 months.
• For Self-Employed people:-
• All the business-related documents, including financial statements and registration.
• Current account statement of last 6 months.

Essentials for a Successful Video KYC

• Original copy of PAN card and all the other important documents.
• Strong mobile network.
• Keep a white paper and blue or black pen with you.

Precautions to be Taken During Video-KYC

• RBI does not support a third party video call. Click only the joining link, which is received from an authentic source.
• Don’t share your joining link with anyone else.
• Ask for the identity card from the officer conducting the KYC and note down their employee ID.
• Never provide any of your passwords during the video call or in any text message or email.

Benefits of Video-KYC

• It is time and energy-consuming. The process is done within few minutes.
• It eliminates the need for bank personal to visit your home or your visit to branch.
• The lenders can do remote onboarding of customers from those locations where they don’t have a branch.
• It ensures the safety of your health in times of the pandemic.

List of Banks & Financial Institutions Which Provide the Facility of Video KYC

• Kotak Mahindra Bank (Kotak)
• SBI Card
• ICICI Bank
• YES BANK
• Capital Float

Conclusion

Video KYC is a boon for the struggling financial sector due to the pandemic. It is also safe for the health of customers and bank employees. When you need a personal loan urgently, video KYC saves you from the delay because of physical identity and documentation verification. The RBI deserves the credit for recognising the need for video KYC and its successful implementation.