In a bid to provide loan upto Rs 1 lakh to young professionals with minimum documentation, slc Pte Ltd, a fin-tech company has launched CASHe, an app that will enable users a personalized experience to borrow cash anytime, anywhere within minutes.In an exclusive interview with UNI, CASHe’s Chairman V Raman Kumar gave the details outlook of the company.Q- What is CASHe and how does it work?Ans: CASHe provides unsecured short-term personal loans from 5000-400,000 for 15-30-90-180-360-540 days’ duration to young employed professionals in the age group of 20-35 years through a smart, intelligent digital app. Its user-friendly digital interface enables faster loan application and quicker loan disbursals. The process of registration is a breeze. The user logs in using his Facebook, LinkedIn or Google Plus accounts. The next step includes filling in basic details and uploading his identity proof such as PAN card and AADHAR along with his latest salary slip and bank statement using the app.
Once registered, the eligibility is confirmed within minutes along with the eligible loan amount. The eligibility is calculated using a sophisticated algorithm that mines the borrowers’ mobile and social network and requests basic documentation to arrive at a Social Loan Quotient – SLQ score and a loan eligibility amount. One the credit is approved; the requested amount is credited to the user’s bank account within minutes. The repayment process too is as simple as applying for a loan. The user can directly credit the amount back through bank transfer on the designated due dates. Q- What inspired you to launch the app? Ans: CASHe’s value proposition lies in the inadequacies of the current banking system in India. Outdated credit appraisal methods, the requirement of a long and detailed credit history and the arbitrariness of individual loan officers have made our target demographic wary of the system as a whole. Add to this the lack of customer convenience; it is little wonder the gaps in coverage that exist in loan provision currently.In stark contrast, CASHe provides almost instantaneous loans on demand – our sophisticated proprietary algorithm mines the client’s social network and requests basic documentation to arrive at a “Social Loan Quotient” (SLQ) and a loan eligibility amount. Using multiple data points to arrive at a distinct credit profile for the customer, CASHe will transform traditional credit measurements, providing financial inclusion to underserved young professionals who are kept out by traditional credit rating and banking system.Q- What is the recovery process in case if the borrower turns a defaulter?Ans: The loan defaults are in 2-2.5 percent range at this time. This will come down as the predictive engine becomes more agile and sophisticated. The backend credit scores generated from the SLQ of a borrower gives us a near-accurate reading of a borrower’s profile when he requests for a loan. A 7-day extension is allowed to the borrower to repay his dues with additional fees. For customers who default on their payments are sent reminders following which we involve our loan recovery team to initiate calls and follow up mails.Q- What is the present ecosystem for start-ups in India and its growth projection?Ans: According to NASSCOM, India ranks third among global start up ecosystems. 2015 has been a landmark year for the start-up ecosystem in India. As of today we have close to 20,000 start-ups in India with billions of dollars in valuation and employing over 3,00,000 people. The emergence of the Unicorns with over billion-dollar valuation of privately held companies have created a lot of confidence in this sector. It is very encouraging to see the future trend ahead for the start-up entrepreneurs, with the government playing a positive role, the most important being the Start Up India policy. Fin-tech currently stands as number 1 focus sector across the world along with big data analytics. Q- Who is your nearest rival and what differentiates your service from theirs?Ans: CASHe uses a sophisticated proprietary technology that mines the borrowers’ mobile and social data and requests basic documentation to arrive at a “Social Loan Quotient” (SLQ) and a loan eligibility amount. Unlike the competitors, the loan process of CASHe is completely automated and without any personal intervention, no physical paper or signatures to be submitted to anyone. The average time we take for a loan to be disbursed is about 8 minutes, subject to proper submission of all data. CASHe has successfully eliminated all human intervention in the transactions with the customer.Q- How do you aim to make a breakthrough from the conventional system?Ans: CASHe uses a sophisticated proprietary technology that mines the borrowers’ mobile and social network and requests basic documentation to arrive at a “Social Loan Quotient” (SLQ) and a loan eligibility amount. Using multiple unique data points to arrive at a distinct credit profile for the customer, it transcends all traditional credit measurements to make personal loans available to the underserved that have been kept out of the traditional banking and lending systems. All other platforms in the market rely on physical verification of documentation, with CASHe, we have made the process in-app and full automated. That’s the key differentiator. Plus, the speed of giving loan within minutes! Q- What is your market base and how do you plan to increase that and by how much?Ans: The target market of young urban employed millennials is about 1 crore in numbers. Since its launch on the April 1st 2016, CASHe has had a phenomenal reach across the length and breadth of the country. Since it’s an app based lending platform our footprint spans the entire country. We are currently disbursing about 4 crores of loans every month, growing at the rate of 1-2 crore new disbursals month on month. The app has got over 55,000 downloads and over 10000 borrowers and growing every day and the aim is to reach 50,000 borrowers within a year. Our aim is to get to 10% of the target market or 10 lakhs borrowers over the next 4-5 years. Our average loan value is about 20,000 and our repeat customers currently stand at 80%.Q- For new start-ups like yours what is the break-even point?Ans: Break- even point for our business is at about 25-30 crore of capital deployed for lending.Q- How much investment has been received so far and from what quarters?Ans: CASHe is funded by TSLC Pte Ltd, a Singapore holding Co and Aeries Group of companies. Together about 20 crore has been invested thus far. We have earmarked 50 crore as investment capital into this venture.
