PayMeIndia EarlySalary . com
Cashkumar
Fintech Watch
“ The employees get dynamic credit limit and quick credit into their account , if their company is listed with us . Additionally , the charges are quite low for such customers . For advance salary support , we have tied up with some leading BPOs and a company , which provides manpower to various industries , and are working towards adding more companies to the list .” The tie-ups , hence , are a win-win proposition for both the employees and the employers .
Simple borrowing process
The best bit about salary advance is the simple process and that the money is credited to your account almost instantly . This is possible because of the technology that these loan providers run in the background . Apart from the CIBIL score and repayment track record of customers , these companies also consider a social score , which is derived from tracking
digital footprints of the customers from their social media accounts , mainly Facebook . “ We have built a social media-based decision making system , which uses complex machine algorithms to help us take faster decisions and give out the loan in minutes . We consider nontraditional data adding a layer , which further gives confidence to lend to a young customer when Credit Bureau like CIBIL / Equifax data is not available or inaccurate for lending or creditworthiness ,” says Mehrotra .
Cashkumar , a peer-to-peer lending company gives salary advances only to existing borrowers who have taken a short-term loan from them . “ We thought of the product when some borrowers would call us to say they might delay an EMI as their salary was not credited yet . It was a difficult situation because even with intent to pay , the borrower would have defaulted and borne penalties . Obviously , they would not have funds to meet other expenses too . So instead of
PayMeIndia EarlySalary . com
Cashkumar
Co-founder Mahesh Shukla , 33
What they do : Provide easy and quick short term financial support in the form of salary advance to salaried persons to sail through mid or month end financial crunch . Business model : They partner with NBFCs to disburse the loan . Interest rates , average age , and loan size : Interest rates on loans range from 0.1 % to 0.3 % per day with the loan amount ranging from `5,000 to `1 lakh . Major age group that they serve is 21-35 . Number of customers : 3,000 plus customers avail their service in a month .
Co-founder Akshay Mehrotra , 36
What they do : Provide instant ultra short term loans and salary advance on a mobile app . Business model : The loan is given by their partner banks / NBFCs registered with RBI . Interest rates , average age , and loan size : Interest of `9 per `10,000 per day is charged . Average loan amount is `18,000 for a period of 22 days . Average customer age is 26 years . Number of customers : They have garnered 1 million app downloads and have provided 60,000 loans worth `85 crore . They are ambitious with a target of 18,000 loans in November .
Co-founder Dhiren Makhija , 36
What they do : Connect verified loan seekers with lenders for short term loans . Salary advance is one of their products . Business model : Individual lenders provide funds and it does not advance any loans from its own books . Interest rates , average age and loan size : Have a fixed interest rate of 24 % per annum on the full loan amount . The average size of loans is `50,000 with an average repayment period of 8 months . Number of customers : Currently , doing about 100 short term loans per month . On average , about 5,000 loan requests are placed every month .
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Outlook Money December 2017 www . outlookmoney . com