In terms of loan growth rate, India is positioned at fifth among the G20 nations. In 2014, more than 400 million people borrowed money in India. However, only one seven loan applications were approved for a formal loan in India. While everyone was busy applauding the exponential loan growth rate in India, Datasigns Technologies decided to cast their focus on the six-among-seven-people who have their loan applications rejected. And to help such people, the founders of Datasigns Technologies (Monish Anand, Rahul Sekar, Anand Barua and Tushar Patel) started India’s leading mobile lending platform – Shubh Loans.
A simple research into India’s lending system brings to light the prevalence of archaic and traditional assessment methods to judge creditworthiness of an individual. The current credit system, with its severe drawbacks, is keeping millions of loan seekers from getting their applications approved. What is worse: A large number of Indians are applying for loans to meet their emergency financial needs (whether it is student loans, home loans or medical loans). Shubh Loans, through its Android application, brings a new approach to credit score reports by helping the applicants understand their credit standing holistically and take better financial decisions!
Based out of Bangalore, Shubh Loans is a vernacular app that is helping a growing number of salaried employees (starting from 12K) in getting a loan of up to 3 Lacs with a long-term (up to 3 years) EMI tenure. The smart credit model deviates from the traditional model (where the individual’s repayment capacity is the sole criteria) and replaces it with the Shubh Loans credit model (which analyzes repayment capacity of and intention-to-pay by the individual). The traditional credit scoring method, which is wrapped with a thick veil of incomprehensibility, keeps 80% of India’s populace from getting loans on time. Shubh Loans aims to cut this clutter and educate the loan seekers about their credit score, that too in the vernacular language, thereby helping them approach the loan seeking process with confidence!
Shubh Loans recently raised 1.5 million Pre-Series – A funding from SRI Capital, Beenext and Pravega. Prior to this, the company raised an undisclosed amount of angel funding from Sanjai Vohra (former MD of JP Morgan), V. Bunty Bohra (Managing Director and India CEO of Goldman Sachs) and Peeyush Misra (Ex-Partner and MD at Goldman Sachs).
The popularity of Shubh Loans as the best upcoming mobile lending platform is showcased in its 50% month on month growth rate. Many business houses are already using Shubh Loans to get customized credit reports and loan processing support for their employees. Shubh Loans has tie-ups with 9 lending institutions in easing the personal loan process for end users. While the Shubh Loans Credit Report is helping the loan seekers understand their borrowing capacity and take corrective measures, the Personal Loan service is helping both unserved and underserved working professionals in getting their loan amounts without leaving the comfort of their home.
It is smart technology solutions like Shubh Loans which can make all the difference in a nation which is trying to bring its entire populace under the formal lending system. Shubh Loans wants to help the nation realize this goal and has set its sight at bringing more than 10 Lac people into the formal banking fold by 2020!