How Paisabazaar is facilitating the growth of consumer loans in India

0


Loan growth is an important indicator of the state of a country’s economic activity, and borrowing and spending are closely linked to consumer confidence. Along with the increase in economic activity, the Indian banking system has also observed increasing growth in bank credit.

Naveen Kukreja

Last year, the RBI released data showing that consumer loans were up 16.6%. Experts saw it as a testament to improved business and consumer confidence.

However, as consumers line up for loans, the gap between banks and consumers remains large. Both being oblivious to each other’s needs and demands, the loan approval process becomes very complicated.

“Our goal is to provide a complete solution in the credit and investment segments. The platform allows users to compare loans, credit cards and investment products from multiple vendors online, ”says Naveen, CEO and co-founder of Paisabazaar.

Product: growth story

Paisabazaar’s initial offerings were limited to personal loans and credit cards.

“Two years ago, the loan and credit card application and approval process was completely offline. The process has been hectic, long and inefficient. The platform started out as an aggregator that only offered a comparison solution to users, ”says Naveen.

Today, it has many more offers on its platform: personal loans, home loans, credit cards, education loans, car loans, savings accounts and mutual funds.

Not only does it provide information on the lending rates of different banks, but also helps consumers to make informed decisions with its tools, which further assist them in obtaining loans.

The platform compares product offerings based on key criteria such as processing fees, interest rates, tenure, and other features that matter most to you. Besides providing unbiased comparison information, it also provides support for users to get the best deals possible with minimum hassle.

It has online tools and calculators that help consumers identify loan eligibility, EMI amount, retirement planning, home loan balance transfer, and deposit account interest rates and fixed savings in different banks, among others.

In addition, the overall human interference (offline activity) in the entire loan and credit card application process and mutual fund purchase process has been greatly reduced.

“We’ve had a lot of success in putting things online and we consider this to be one of our biggest accomplishments in the category,” adds Naveen.

The CEO sees that the growth of the company is also reflected in the numbers it has achieved in those two years.

Growth in numbers

The company claims to have experienced tremendous growth over the past two years.

“From the start, we have been focusing on work. We knew the differences in the category. We were aware of the needs and demands of banks and customers. We have joined forces with many partners, expanded our offerings and offered the right solutions to consumers. This is how we achieved this growth in the space of two years, ”explains Naveen.

Paisabazaar has worked with over 50 partners in the lending category, including banks and NBFCs, some of which are HDFC, SMI, Axis Bank and Dena Bank. On the mutual fund and investor side, the number of partners is 30. The total number of partners has been steadily increasing, with between two and three partners joining each month.

It receives 2.5 million inquiries and has reached annualized loan disbursements of Rs 2,000 crore.

The company is aiming for 3X growth and aims to break through the annualized disbursement rate of Rs 5,000 crore by the end of this year. He plans to receive an annualized disbursement of Rs 25,000 crore by 2020.

Fintech: a growing market

Fintech startups seem to be trending in the Indian startup ecosystem.

Data collected by the YourStory Research team shows that there are more than 2,000 fintech startups in the country.

In the category of loans and investments, BankBazaar and Paisabazaar are the two platforms known to follow rating models.

The growth of SME lending platforms is the other category. Capital float, Rubic, and Loan kart are just a few of these platforms.

In the P2P lending segment, Faircent, which has raised an undisclosed amount of funding from Mohandas Pai, is one of the biggest players.

Payments have become synonymous with fintech. It was one of the first segments where startups started to grow and disrupt the way people transact, and it was also one of the first regulated players. One of the biggest players in the payments space is Paytm, which gobbled up one of Alibaba’s highest funding amounts last year. Several other payment banks and mobile wallets include FreeCharge, MobiKwik, and Oxigen.

Since 2007, more than $ 2.76 billion has been raised by this industry. The bulk of those funds have ended up in wallets and payment gateways, which have so far totaled nearly $ 1.9 billion in investments.

According to YourStory Research, $ 1.2 billion has already been invested in fintech startups over the past two years. Indeed, the number of fintech startups funded in the first half of 2016 is equal to the total number of startups funded in the sector in 2015.

In December of last year, Rubique, backed by Kalaari Capital, had disbursed nearly 150 crore rupees, and Capital Float, which raised $ 25 million in Series B funding led by Creation Investments Capital Management, claimed to have disbursed nearly 300 crore rupees in May. . Lendingkart also raised $ 32 million in Series B funding.

The payments segment is the second largest funded space. The total amount of funding provided between last year and this year is $ 866 million.

The development of the FinTech segment heralds the growth of a new era financial system in India.

Experts say people don’t need more banks, they need more banking services. They believe that technology implementations have the ability to bring banking solutions to the lounges of the masses.

Website


Leave A Reply

Your email address will not be published.