HDFC Bank Creating New Platform To Push Its Merchant Loan Business
HDFC Bank has decided to make a dedicated app to push merchant loans to small businesses, Economic Times (ET) reports.
The 'AutoFirst' application will provide completely automated loans as the bank looks to triple its monthly merchant loan output.
“We don't want to wait for the most perfect product to launch, we will put together a minimum viable product and upgrade the offerings,” the bank’s senior executive Parag Rao was quoted by ET.
They are also set to launch the SmartHub Vyapar program for merchants that will handle all payment platforms like cards, UPI, SMS-based payments, QR Code and tap pay.
HDFC Bank has planned to on-board 20 million merchants within the next three years.
“We are doing fund flow-based underwriting so that inside the app itself, merchants will have access to the quantum of loan eligibility,” Rao told ET.
He added that, “the merchant can avail of working capital or short-term loans, a business card or loan on the business card.”
HDFC Bank is also likely to initiate a dedicated platform for vehicle loan customers. The lender is looking to capitalise on the market as the Reserve Bank of India (RBI) recently lifted all restrictions on HDFC’s digital business generating activities.
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