The Future of Loan Origination: Faster Journeys, Better Conversions

Why do loans still feel so slow?

India’s digital lending market is booming, with disbursals expected to cross ₹15 lakh crore by 2030. Yet, behind the growth headlines lies a stubborn problem: loan origination is still painfully slow.

• The average personal loan disbursal takes 7–10 days, even though the application itself can be completed online in under 10 minutes.
  
  
• Nearly 40% of high-intent applicants drop off during the process, mostly due to delays and lack of communication.
  
  
• Every day of wait time pushes CAC higher and gives competitors a chance to snatch the borrower.

This gap between a fast application and a slow disbursal isn’t just friction. It’s a structural leak in the funnel that drains growth and erodes trust.

Where loan origination breaks down

Zooming into the borrower journey shows the same cracks again and again:

• Applications stall: Typos, missing details, or incomplete forms block progress.
• KYC drags on: Document uploads and verification stretch out for days.
• Decisions are delayed: Underwriters wait for files to be “complete,” while borrowers lose patience.
• Communication gaps widen: Customers aren’t told what’s happening, so they quietly drop off.
• Disbursals lag: Even after approval, funds can take days to hit the account.

The common thread? Lack of ownership. No single person or system ensures the loan keeps moving. Small misses: a pending Aadhaar OTP, a missed callback, balloon into week-long delays.

Why the usual fixes don’t work

Lenders have tried hiring more field agents, outsourcing to BPOs, and patching with chatbots. None of it fixes the root cause.

• More people → higher costs without faster journeys.
• Bots → reminders only, not real problem-solving.

That’s why McKinsey reports lenders who truly digitize origination see 30–50% efficiency gains, but only when the process is reimagined end-to-end.

A smarter way forward

This is where Humanoid AI Agents come in. Unlike bots, they don’t just notify, they own the journey:

• Call or WhatsApp borrowers seconds after submission.
• Guide them through eKYC step by step, in English, Hindi, or their local dialect.
• Carry forward context so no document is requested twice.
• Send proactive status updates and clear next steps.
• Stay fully compliant with RBI and KYC regulations.

What once took days can now be completed in hours.

How Leading Lenders Are Disbursing Faster with SquadStack’s Voice AI

The impact is already visible across BFSI:

• MoneyView scaled loan engagement securely, achieving 89% connectivity and driving a 10x increase in disbursals over two years.
• Kissht increased loan disbursals by 82% while cutting CAC in half.
• Upstox boosted activations by 40%, scaling onboarding across 2 crore+ leads.
• Choice India reduced CAC by 70% while achieving 72% connectivity.

Across these deployments, the broader pattern is clear: 9 out of 10 applicants are successfully connected, and timely nudges push KYC completions up by around 30%. Lenders also see acquisition costs fall by nearly 40% as fewer leads go cold, while customer satisfaction consistently holds at 85–86%, often outperforming human-only teams.

Imagine this: A borrower applies for a personal loan at 11 am. By noon, their KYC is verified. By evening, the funds are in their account. That’s not future thinking, it’s already happening with AI-driven origination.

What it means for the future

When origination becomes seamless, lenders win on every front:

• Customers feel guided, not abandoned.
• Sales teams focus on high-value borrowers, not chasing missing documents.
• Marketing ROI improves because more applications convert.

And the industry trend is clear. Gartner projects conversational AI will handle 14% of customer interactions by 2027, up from just 3% in 2023. Loan origination is one of the biggest opportunities to capture this shift.

The future isn’t about faster forms. It’s about AI-led ownership that turns origination into a guided, frictionless journey, boosting both customer trust and lender growth.

Closing thought

At Global Fintech Fest 2025, SquadStack will showcase how Humanoid AI Agents are helping lenders accelerate KYC, cut drop-offs, and unlock higher conversions across the loan lifecycle.