HDFC Bank to set up loan kiosks in 500 corporate offices

HDFC Bank, India’s second largest private sector lender, plans to set up kiosks at corporate houses with the aim of making personal loan borrowing easier for the employees.

HDFC Bank plans to set up 1,500 priority desks across 500 companies in nine cities by August 2012.

The loan kiosks aim to cut-down the time for getting personal loans to just one or two days, unlike the current process where most banks take up to two weeks.

Using HDFC Bank's kiosk facility, customers can apply for a loan at their office and ideally receive money in 24 hours.

The charges and the interest rates for the loans issued from the kiosks are meant to be similar to that of loans sanctioned from the HDFC Bank's branches.

Customers can avail details about personal loans at the kiosks and can then apply then and there to borrow a loan.

Senior vice-president and business manager for unsecured loans at HDFC Bank, Sai Giridhar said, initially, companies that already have a banking relationship with HDFC Bank are being targeted.

Girdhar said HDFC Bank's objective is to “improve the customers’ experience and make the entire process hassle free”.

HDFC Bank has more than 2,150 branches across India and, in December 2011 business head for credit cards and merchant acquiring at HDFC Bank, Parag Rao, told RBI that the lender aims to open another 450-500 branches in 2012.