Indian Banks Soon To Offer Personal Loans Through ATMs!


Can we imagine a life without ATMs and ATM cards? Very difficult, right?

Automatic Teller Machines (ATMs) have made the process of banking and money transfer very simple and convenient for us. It is possible to shop, pay bills, check balance, update passbooks, and even deposit cash through ATMs. Thanks to our ever-evolving Indian banks that try to add more number of retail banking products, simplify the process of banking, and enhance customer service for meeting a variety of our needs.

Now, Indian banks are planning to add yet another feature to their ATMs and that is- Personal Loans!

Yes. Soon we’ll be able to get quick, small value personal loans just by swiping our card into an ATM; without the need of going to the banks, submitting a dozen of documents and waiting for clearance. State Bank of India (SBI), which is the largest lender in the country, is inviting tenders for multi-vendor software that will allow disbursement of loan instantly through ATMs. The bank has already started taking steps to deploy this system across its large network of 50,000 ATMs. According to Mrutyunjay Mahapatra, SBI’s Chief Information Officer (CIO), about 300 to 400 customers use an ATM each day. Hence, adding  the service of disbursing personal loans at ATMs would be a win-win for both customers and the banks.

How does this “Personal-Loans-Through-ATM” system work?

The service will be built on three main pillars- big data analytics, multi-vendor software and an ATM. Banks will be using big data analytics to collect and study customer data like his/her personal details, job details, income, and financial status. Based on this data, the bank will be able to decide the amount of loan to be offered to the customer. This offer will be displayed on the ATM screen once the customer swipes his/her card. The customer can click on the “Agree” button against the legal terms and conditions and enter his/her mobile number (for verification) if interested in the personal loan offer. Within seconds, the loan amount will be added to his account! The best part of this service is that customers can apply for loans even on holidays.

“Indian banks are keen on introducing personal loan facility at ATMs as they want to push their retail banking products”


Banks would be able to control all of its ATMs with the help of ATM hardware-agnostic multi-vendor software. This software, running through all hardware, will allow detection of customers entering the ATM counter. With this, banks will be able to offer not only loans, but also insurance products through ATMs.

However, the process for applying for personal loans through ATMs will be different for the bank’s own customers and other customers. The bank’s own customers will not be required to come to the bank or make phone calls to bank’s executive, but other customers will have to formally apply for the loan. These “other customers” will be provided with a “Call Back” option, under which they’ll have to fill-up their contact details and wait for the bank to call them back. The bank will help with the remaining application process.