You can get loans even your Cibil Score is Low :- New RBI System

Welcome to our channel! In this video, we will explain RBI's new unified system for credit verification. This game-changing system is designed to revolutionize the loan approval process, making it faster, more efficient, and accessible to everyone even your CIBIL SCORE IS LOWShow more

Join us as we dive deep into the intricacies of this innovative system and how it will transform the lending industry. We'll discuss its key features, benefits, and its impact on borrowers and lenders alike.

Whether you're a borrower seeking a hassle-free loan process or a lender looking to enhance your credit assessment capabilities, this video is a must-watch!

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00:00:00 Introduction to the RBI's Unified System
00:00:34 The Goal of the Unified System
00:01:05 Centralizing Credit Data
00:01:41 Phased Rollout and Benefits
00:02:13 Coverage and Information
00:02:48 Biometric Information and Repayment Capacity
00:03:29 Artificial Intelligence and Technology Solutions
00:04:05 Paradigm Shift in Loan Sanctioning

Hello everyone.

The Reserve Bank of India (RBI) has come up with a new unified system for verifying credit information.

The Reserve Bank of India (RBI) has proposed a unified system for banks and other financial institutions to verify the information and documents required for granting loans.

It aims to provide hassle-free and quick access to credit to those who find it difficult to access credit in all sectors of society.

The scheme has been developed by the Reserve Bank of India's Innovation Hub (RBH).

It will be launched in five states - Tamil Nadu, Andhra Pradesh, Karnataka, Uttar Pradesh and Maharashtra.
The new platform is being introduced in the context of the rapid progress in the digitization process in the country.

The objective of RBI is to strengthen and provide common digital infrastructure to enable banks, non-banking financial institutions, limited companies and start-ups to provide advanced facilities for financial transactions, lending and other activities.

At present, the indicators and data to be considered for approval while availing loans are in separate networks.
The new system is aimed at making the data of various agencies and networks such as account aggregators, banks, credit rating agencies, and Aadhaar-like identification agencies in the central and state governments available on a single platform.
It will connect everyone working in the financial sector without any hindrance.

It will be implemented in a phased manner on a trial basis.

The information received at the initial stage will be evaluated and the necessary changes will be made.

The system will help make the loan process more efficient, reduce costs and complete the process faster.

Initially, loans up to Rs 1.60 lakh i. e. Rs. 1,60,000 for Kisan Credit Cards, Dairy Loans, Micro, Small and Medium Enterprises, Personal Loans and Home Loans will be covered.
Aadhaar, eKYC, land records in the possession of the state government, data collection through satellites, PAN assessment, Aadhaar, this signature, information from cooperative institutions, information related to house or property, etc. will be made available to the lending institutions through this platform.

Set up a separate device and mobile application under this system to receive biometric information of customers.

This means that loans will be made available by evaluating the borrower's repayment capacity, including the beneficiary's assets, instead of checking the history of taking loans in the past.
The Reserve Bank of India (RBI) has decided to expand the use of Artificial Intelligence (AI) to streamline regulation and supervision of banks and non-banking financial institutions.

India Extender Solutions has roped in McKinsey & Company, a global consultancy firm, to develop technology solutions that use machine learning and persuasion.

The RBI had invited bids for the consultancy in September 2022.

According to RBI documents, a contract of Rs 91 crore has been executed for these reforms.
With this unified system, the Reserve Bank of India is now aiming at a new system of sanctioning loans by evaluating their assets instead of denying them in the case of CIBIL score