Incorporating Digital KYC to lower the TAT from 4 days to 2 hours for a FinTech Company

At A Glance

Instant Gratification is always attractive and appreciated and our client wanted to bring this for the farmers who are looking for financing. The usual turn-around time is 4 days for a farmer to avail the loan and apart from the various formalities, the farmer also must travel back and forth. This is where our client stepped in and offered a convenient, localized, and faster method and we are proud to have been able to help them in achieving their Vision.

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 Agricultural loans are availed by a farmer to fund seasonal agricultural operations or related activities like animal farming, pisci-culture or purchase of land or agricultural tools. Our client established their business which the mission to help the farmers in financing and hence availing loan was one of the many services that they offered. Our Client already had farmers purchasing from their various platforms, so they had an established database at hand with the following details:

-       Basic Information

-       How much credit does a farmer hold and,

-       Regularity

 They wanted to build around the following methodology. A farmer wants to avail a loan for some amount to purchase pesticide. Our client already had the details of his farm size and the seeds that he has purchased. Having this information, an estimate can be drawn on the total income of the farmer on the crop and what it would cost him to have sufficient pesticide for his crop. According to these forecasts, a loan can be availed to him.

 They had a plan, but the turn-around time was 4 days and that is when they approached us. We understood their model and came up with a 3-step process to achieve what they envisioned.

 We decided to digitize the complete process. While we were doing that, our client got in touch with local retailers and converted them into their certified retailers. The farmers can simply go to these retailers and apply for a loan. The retailers were located strategically for convenience to the farmers at places like in and around the Mandi.

 The First Step:

Since we had brought the whole application process online, a farmer had to go to one of the certified retailer and needed to put in some basic details like his PAN Card Number, Aadhar Card Number, Area of the Field, etc.

We clicked a picture of the following details to keep with us as his record.

 The Second Step:

The second step was to verify the Bank details. We sent a link to the farmers through NPCI for authorizing us to deduct the set EMI automatically from their account.

 The Third Step:

Once the above two steps were done, a loan agreement was generated, and the farmer needed to sign it digitally. Until now, the farmer needed to be present physically in order to complete the loan process and sign the loan agreement, but we helped our client revolutionize this process into Aadhar Card based OTP signing.

The farmer received an OTP from UIDAI upon completing all the formalities. Once the farmer, inputs this OTP, their loan process is completed.

 The End-to-End cycle takes around 2 hours post which the loan amount is credited into the farmers’ bank account.

 All the procedures for approval were done through various government bodies to gain and maintain the trust of the customers. Hence, we were able to simplify the complete process and make it convenient for the farmer by reducing the turnaround time from 4 days to just 2 hours.