Online lending platform EarlySalary said that it has crossed the disbursal mark of Rs 500 crore by providing financial assistance to over 135,000 new customers and disbursing cumulatively 350,000 loans. The company said that the majority of these loans were offered to young people.
The Pune based startup has a salary advance mobile application that enables users to borrow money for urgent cash requirements before they get their monthly wages. The company targets individuals who face month-end and mid-month financial crisis by providing small loans until they receive their salaries. Users of the application are able to login though their Facebook accounts, communicate the amount they need as a loan and a date they could settle it, submit basic documents, and get the money credited to their bank accounts.
Currently, EarlySalary has a team of 150 staff and they disburse about Rs 80 core per month. As many as over 60,000 loans applications are processed every month. The company said that 24-30-year-olds are the largest user base of its application.
On its platform, a customer with a monthly salary of above Rs.18,000 can apply for a loan.
The product portfolio includes 7 to 51 days bullet loan product wherein nearly 40% of the customer base has now been offered 3 months to 12 months EMI loans on repeat loans.
Shopping Limit at No Cost EMI on Flipkart, Amazon & Big Bazaar is the second most used product feature with over 4K transactions per month.
“We are a customer focus organisation and our mission is to provide financial assistance to the underserved classes. Today, our Machine Learning Algorithms have evolved to the next level and help us cater in real-time to many more customers than what we had initially anticipated. We are happy that we have crossed loans disbursals of Rs 550 core in such a short span and believe that in the next 18 months we can disburse 10x of this and cross a billion dollar worth disbursal,” said Akshay Mehrotra, Co–Founder and CEO, EarlySalary.
“Consumer lending is fuelled by an immense rise in the young working population, our ability to lend to young first-time customers helps create a strong niche yet provides a large underserved market potential, giving EarlySalary a unique opportunity. We are extremely proud that we have disbursed over 350,000 loans in such a short duration,” said Ashish Goyal, Co-Founder & CFO, EarlySalary.
The company has a presence in 17 cities across the country. Users can currently avail loans of up to Rs 2 lakhs; a line of credit ranging from 50 days to 2 years and interest-free EMIs for shopping. Early Salary’s social media based underwriting system and machine learning platform allow even a person who is New to Credit (NTC) or a Customer without Credit Bureau scores to borrow, said the company.