In a move aimed at improving accessibility and reducing dependency on plastic banking tools, HDFC Bank is now offering pre-approved personal loans via ATM machines—even without requiring an ATM card. With RuPay and Jan Dhan Yojana cards already transforming India’s banking habits, this innovation marks another shift in how ordinary citizens interact with financial services.
A Cashless Era Finds Its Footing
The traditional ATM card might soon become obsolete for many Indians. Thanks to government-backed initiatives like the Pradhan Mantri Jan Dhan Yojana and the growing penetration of RuPay cards, millions have already transitioned to digital or contactless banking. HDFC Bank has now taken this trend a step further, allowing select customers to access pre-approved personal loans directly via ATM machines without even using a debit card.
According to the report, this facility is available to HDFC Bank customers who have received a pre-approved loan offer. “Even if your ATM card is lost or expired, you can still use an HDFC ATM to withdraw funds, as long as you qualify,” the article explained. This feature is part of the bank’s broader attempt to make credit more accessible, especially in semi-urban and rural regions where ATM cards are either infrequently used or unavailable.
How It Works: Step-by-Step Loan Disbursement at ATMs
To avail the loan, customers must first confirm whether they are eligible for a pre-approved offer. This can be checked via the HDFC Bank mobile app, internet banking, or SMS alerts. If eligible, users can visit any HDFC Bank ATM, where they will find a “Loan” option on the screen.
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Once selected, the screen displays the loan amount, interest rate, EMI details, and tenure. The customer must review these terms and click “Proceed.” Following this, the system will prompt users to input identification details like name, email ID, Aadhaar number, and PAN. Upon verification, users will be asked to re-enter their ATM PIN to finalize the transaction. A confirmation message will then be sent to the registered mobile number.
Remarkably, even customers without an ATM card can access this loan facility using the details linked to their mobile number and Aadhaar. The convenience reduces reliance on in-person banking or mobile apps, making financial inclusion more tangible.
Read the Fine Print: Interest Rates and Caveats
Despite the ease of access, the article warns users to understand the financial implications. Interest rates on these loans can be steep, ranging between 36% and 48% annually. This rate is significantly higher than most secured loans or even standard personal loans offered through formal banking channels.
Additionally, though the process is largely digital, borrowers must exercise caution when inputting sensitive personal data like Aadhaar and PAN numbers. There’s also the risk of over-borrowing due to the instant availability of funds. Experts suggest reading all terms displayed on the screen carefully before accepting the loan offer.
Still, for many cash-strapped customers in urgent need of liquidity, the ability to withdraw sanctioned loan amounts from an ATM without needing an ATM card could be a game-changer.