HDFC Bank decided to create a dedicated app to push merchant lending to small businesses, Economic Period (ET) reports.
The “AutoFirst” app will provide fully automated lending as the bank seeks to triple its monthly production of merchant loans.
“We don’t want to wait for the most perfect product launch, we will create a minimum viable product and upgrade the offerings,” Parag Rao, a senior bank executive, was quoted by ET as saying.
They are also set to launch the SmartHub Vyapar program for merchants which will handle all payment platforms like cards, UPI, SMS, QR Code and tap pay payments.
HDFC Bank plans to onboard 20 million merchants over the next three years.
“We do fund flow-based underwriting so that inside the app itself, merchants have access to the quantum of loan eligibility,” Rao said. HEY.
He added that “the trader can benefit from working capital or short-term loans, 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 capitalize on the market as the Reserve Bank of India (RBI) recently lifted all restrictions on HDFC’s digital business generation activities.