Flipkart Will Provide You Instant Loan Via Video-Based KYC

Flipkart will provide instant loans via video KYC
Flipkart will provide instant loans via video KYC

Walmart-owned Flipkart has more than 100 million ecommerce users. Now, the time has arrived for them to jump into full-fledged fintech services.

As part of their endeavours, Flipkart has now launched video-based KYC process, which will help them to issue instant loans for their credit-worthy customers.

How will it work?

Instant Cardless Credit For Flipkart Users

In September last year, Flipkart had launched a unique credit facility for their users, wherein they could have shopped for Rs 60,000 without spending a dime.

Based on their credit history, loan upto Rs 60,000 was being provided. Even Amazon launched this service. This entire process was based on Aadhaar KYC process.

However, in December 2018, the Supreme Court banned the use of Aadhar Card for private companies. In order to fill that gap, E-commerce started with unique and offline KYC processes.

Now, in order to re-start their lending services, Flipkart has decided to launch a video-based KYC process.

This new mechanism for video-based KYC has been started with 10,000 customers and they plan to increase the number up to 1 million.

Flipkart claims to have received the in-principle approval by RBI. Also, within 2-3 weeks it will be providing the other facilities, after getting other required approvals.

Flipkart’s Lending Process: How Will It Work?

Flipkart is currently using data points to rank their customers, which will help them to decide how much credit can be allocated.

It is tracking around 1000 data points to determine the customer’s intentions and ability to pay back. It will also be using customer’s buying habits, details, and history in order to provide a loan, accordingly, and to also avoid frauds.

Ranjith Boyanapalli, vice-president of fintech and payments at Flipkart said “We will work with partners, in some cases, we will use shared data and in some cases, we will want to go solo, the ultimate aim is to increase affordability for the customer”?

It has partnered up with some of the fintech firms like-

  • Kissht, which is offering EMI facility without the requirement of a card.
  • ZestMoney, which offers EMI facility for online transactions.

With the help of these partners, Flipkart has helped the people by providing loan to 1.2 million customers. It is now working on video Know Your Customer with partners.

Also, the e-commerce giant has applied for an NBFC license to push the lending facilities. Meanwhile, their famous rival, Amazon, has already announced line up for lending facilities for 60,000 customers.

Customers’ Benefits

  • Overall, 67% of people are using credit cards to purchase and use credit facilities. The other 33% of people will have tremendous benefits from Flipkart’s cardless credit facility.
  • More than 70% of the buyers of Flipkart is youth. With expenses like colleges, flats/pgs, entertainment, food, and etc, it has become harder for youth to buy something immediately, without saving up for it. With the help of Flipkart, this is not a problem anymore.

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