Use Case

Loan Processing Verification

Perform pre-disbursement video KYC with integrated fraud detection for personal and business loans. Validate borrower identity before a single rupee leaves your books, ensuring every disbursement is backed by verified, tamper-proof evidence.

The Challenge

Fraudulent Applications Drain Lending Portfolios

Lenders face a growing wave of identity fraud in loan applications. Synthetic identities, forged documents, and impersonation attacks bypass traditional verification methods, leading to mounting NPAs and regulatory scrutiny. Manual checks are slow, inconsistent, and cannot keep pace with digital lending volumes.

  • Synthetic and stolen identities pass through paper-based verification undetected
  • Manual document checks create 3-5 day processing bottlenecks per application
  • Inconsistent verification standards across branches lead to compliance gaps
  • Post-disbursement fraud discovery results in irrecoverable losses and legal costs
85%

Reduction in fraudulent loan applications after implementing BASEKYC pre-disbursement video verification with AI fraud scoring

The BASEKYC Solution

Verify Before You Disburse

Pre-Disbursement Identity Check

Mandate a live video KYC session before any loan is approved. The borrower's face is matched against submitted ID documents in real time, with liveness detection preventing photo or video replay attacks. Every session is geo-tagged, timestamped, and stored as regulatory evidence.

AI Fraud Scoring

Our AI engine analyzes video sessions in real time, scoring each application on behavioral signals, document forensics, and facial biometrics. Suspicious patterns such as coached responses, digitally altered documents, or mismatched lighting conditions are flagged instantly for manual review.

Automated Documentation

Eliminate manual data entry with OCR-powered document extraction during the video session. Income proofs, address documents, and identity cards are automatically parsed, validated against issuing authority databases, and packaged into a complete loan verification dossier ready for underwriting.

Key Features for This Use Case

Regulatory Framework

Loan Origination Compliance

Digital lending in India is governed by a layered regulatory framework. BASEKYC ensures your loan processing workflows satisfy every applicable requirement from origination through disbursement.

RBI Digital Lending Guidelines 2022

The RBI circular DOR.CRE.REC.66/21.07.001/2022-23 mandates that all digital lending platforms must perform KYC verification before loan disbursement. Loan service providers (LSPs) must ensure borrower identity is verified in compliance with the regulated entity's KYC policy, with disbursement made directly to the borrower's verified bank account.

PMLA KYC Requirements

Under the Prevention of Money Laundering Act, 2002 and PML Rules 2005 (Rule 9), every regulated entity must carry out Customer Due Diligence (CDD) at the time of establishing a business relationship. For loan accounts, this includes verifying the borrower's identity through officially valid documents (OVDs) and maintaining records for a minimum of five years after loan closure.

RBI VCIP Master Direction

RBI's Master Direction on KYC (updated January 2023) permits Video-based Customer Identification Process (VCIP) as a valid method for CDD. VCIP sessions must be conducted by trained officials, include live photograph capture, OVD verification with Aadhaar XML or DigiLocker, geo-tagging, and end-to-end encryption. BASEKYC is fully compliant with all VCIP technical and procedural mandates.

Fair Practices Code for NBFCs

RBI's Fair Practices Code (RBI/2024-25/27) requires NBFCs and lending institutions to communicate all loan terms to the borrower before disbursement and obtain explicit consent. BASEKYC records borrower consent during the video KYC session itself, creating a timestamped, tamper-proof record that satisfies the consent documentation mandate for every loan application.

Implementation

Go Live in 3 Weeks

1

Week 1: Integration & Configuration

Connect BASEKYC APIs with your loan origination system. Configure loan-type-specific verification workflows, set up fraud scoring thresholds, and map document extraction fields to your underwriting data model.

2

Week 2: Agent Training & UAT

Train your verification agents on VCIP protocols, loan-specific document checks, and fraud flag escalation procedures. Run end-to-end testing across personal loan, business loan, and top-up loan workflows with simulated applications.

3

Week 3: Pilot & Go Live

Launch with a controlled pilot on a single loan product. Monitor approval rates, session quality, and fraud detection accuracy. Iterate on thresholds and workflows, then expand to all loan products with full production traffic.

Further Reading

Stop Fraud Before
Disbursement

Deploy pre-disbursement video KYC across your lending portfolio and cut fraudulent applications by up to 85%. Get started in days, not months.