The country's largest bank, the State Bank of India's super app 'YONO', is gearing up to offer fast track two-wheeler loans and also express credit, a high-value personal loan.
Currently, the YONO offers small ticket size loans with an average size of Rs 2.5 lakh, cardless cash withdrawals at ATMs, opening of savings banks, and also generates leads in the car and home loans.
The pre-approved personal loans are very popular with disbursements of Rs 21,000 crore plus in 2020-21. These loans are given to existing customer based on past credit history, spending behavior, and repayment track record.
In fact, a personal loan was the first credit product offered through YONO.
The plans are now to expand the YONO product basket to other retail loans. The bank is currently testing digital document execution (DDE), which includes a digital signature and other digital infrastructure. The high-end express credit will be a personal loan in the larger ticket size category. The amount could be anywhere between Rs 5-10 lakh per borrower.
Similarly, the bank is working on a two-wheeler loan via the app. But this facility will be offered in states where digital stamp duty infrastructure is available.
Going forward, the bank plans to extend the loan products to new customers. The account aggregator system is also coming up which will offer faster access to customer credit history with other banks.
Currently, the YONO APP is already generating leads for car loans and home loans. The app has sourced leads for Rs 6,000 crore home loans and Rs 4,000 crore leads for car loans in 2020-21. The bank claims that they have also sanctioned a total of Rs 10,000 crore such loans through the bank's physical channel.
YONO APP offers a huge opportunity for banks to shift from the high-cost branch model to a cost-effective app for selling retail loan products. Currently, the bank has disbursed Rs 8.31 lakh crore of retail personal loans at its branches by December 2020. Out of that, the home loan had the biggest share of Rs 4.84 lakh followed by Rs 1.77 lakh of express credit and Rs 75,937 crore of auto loans.