Apply for loan just at a click

Applying for bank loan has become easy, you just have to click. Online facility for applying loan has made it possible. For instance Syndicate Bank, a public sector bank having head quarter in Manipal has launched a new online service to enable the customers to apply for loans online.

Online a format of an application form is available you just have to fill up the form and post it online. Once posted online, will go to the bank's central processing server. On the other end the bank executives will be able to see the request as a pop-up, and call the applicants for a physical meeting, if satisfied with the parameters.

Originally the online service was launched to enable the small and medium enterprises (SMEs) access credit facilities, seeing the positive response the service has now been extended to students, professionals, self-employed persons, traders, corporates, agriculturists and individuals.

Now days over 80 per cent of transactions in some of the big private sector banks take place through direct channels such as telephone, internet, ATMs and mobile phones.

In ICICI Bank largest private sector bank around 85 per cent of the transactions take place from direct banking channels. On any particular day, the bank sends information on various products through one million SMSes.

"When we launched mobile banking, 7 million customers registered with us in about a year. Initially, customers were using mobile phones to receive information on account status. Slowly they have graduated to receiving statement of savings and loan accounts and getting credit invoice among others," says V Vaidyanathan, executive director (retail banking), ICICI Bank.

Recently, HDFC bank has tied up with ngpay, a mobile solution brand from JiGrahak Mobility Solution, to make transfer of funds easy for the customers to any HDFC or non-HDFC bank account holder.

YES Bank, was the first one to offer advantages in many areas starting from providing Real Time Gross Settlement (RTGS) over internet to providing single PIN system for all the banking transactions, points out that technology is crucial for the bank's success.

Says Abhisek Anand Bhagat, vice-president, corporate development & strategy, technology & operations, YES Bank: "There has been a fundamental shift within technology organizations due to advent of the new technologies. This is why the relationship between the financial institutions and technology providers has evolved from just the traditional vendor-supplier relationship to a strategic partnership."

Public sector banks have also started making efforts to use technology.

Corporation Bank has tie-up with Mumbai-based PayMate to make possible for its customers pay LIC insurance premiums through SMS. Canara Bank is offering non-banking services such as booking of railway tickets, payment of excise and service tax etc.

Even the mobile banking is taking up as some of the global handset manufacturers are planning to roll-out solutions for mobile banking.

"Mobile banking will certainly pick up in India, especially since people in many parts of the country do not have access to banking. We are looking for partners in India to launch the service," said Ravin Singh, market development manager, mobile commerce & location-based services, Mobile Devices, Motorola.