What is Account Aggregator and How It Simplifies Your Personal Loan Application
18 December, 2024
Synopsis
- Account Aggregator or AA is an RBI-recognised non-banking financial entity.
- AA allow the sharing of customer’s financial information with their consent.
- When applying for a Personal Loan, you may opt to share your financial information via AAs.
Typically, when you apply for a Personal Loan, you are required to share your financial data to the lender. For this, you would gather a range of documents each time. Account Aggregators (AA) make the process of sharing financial data hassle-free. In this article, you can get information on how Account Aggregators can simplify your Personal Loan application.
What is Account Aggregator?
An Account Aggregator (AA) is an RBI-recognised non-banking financial entity that acts as a bridge between your financial information and financial institutions, like banks, with your consent. It allows you to securely share your financial data, such as bank statements, tax information or salary records, with banks when applying for a loan.
Previously, sharing such information involved gathering multiple documents from various banks. With AA, all of this information can be shared in a few clicks from your bank accounts to the lender without needing physical paperwork, as long as both you and the lender are part of the AA network.
How it Works?
The AA network operates through regulated entities, including banks and other financial institutions, known as Financial Information Providers (FIPs) or Financial Information User (FIU). Here’s how it works:
Register on the AA Network: Once you decide to apply for a Personal Loan, you can choose to register with an AA.
Consent-Based Data Sharing: Using your consent, the AA enables you to grant access to specific financial data from your bank accounts or other financial institutions to the lender. You control what data to share, and access can be revoked anytime.
Encrypted Data Exchange: Once you provide consent, the AA fetches the necessary information from your FIP (such as your bank) and securely shares it with the FIU (like the lender) using strong encryption. Your data is never stored with the AA. This way, the transaction remains private and secure.
Loan Processing: With the required information in hand, the lender can quickly assess your eligibility, verify your income, and process your loan application.
Benefits of Using an Account Aggregator for Personal Loan Application
Opting for an Account Aggregator provides several benefits for Personal Loan applicants:
Simplified Documentation: You can avoid the hassle of collating multiple physical documents from different banks. The AA platform lets you provide digital access to your financial records, simplifying the documentation process for a Personal Loan.
Enhanced Privacy and Security: AAs don’t store your financial data and use end-to-end encryption for data sharing.
Reduced Processing Time: By quickly sharing verified data with the lender, the AA network reduces the time it takes to process your loan application.
Transparency and Control: The consent-based model allows you to decide exactly what data to share and with whom, giving you transparency and control over your personal information.
Get Access to Personal Loan Faster with Account Aggregator
With an AA-enabled loan application, you can speed up the process of getting access to funds. At HDFC Bank, you can apply for Xpress Personal Loans and opt for document verification through secure AA channels and get access to your Personal Loan faster.
Apply for Xpress Personal Loans
Frequently Asked Questions
Is Account Aggregator safe in India?
The Account Aggregator framework is regulated by the RBI, ensuring that data sharing is compliant with strict guidelines. Also, AAs use end-to-end encryption and do not store any personal or financial data.
Is it necessary for a customer to register with all of the AAs?
It’s not mandatory to register with all AAs. You can choose any licensed AA service provider to register and share your financial data with the lender. Once registered, you’ll be able to use the AA platform to share your data with lenders within the network.
Apply for Xpress Personal Loans
*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Personal Loan at the sole discretion of HDFC Bank Limited. Loan disbursal is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.
