EarlySalary partners HDB Financial Services for digital loans

  • MUMBAI: EarlySalary, a consumer lending platform for working professionals, on Wednesday said it has tied up with non-bank financier HDB Financial Services Ltd to fuel growth in digital lending.
  • HDB Financial Services is a subsidiary of India’s largest private lender HDFC Bank.
  • G Ramesh, managing director and chief executive of HDB Financial Services, said, the partnership will help reach millions of customers across India by providing them with easy finance with digital on-boarding and customer support, thus providing them with a seamless borrowing experience.
[Via]

India’s $1 trillion digital loan market is next battleground for tech giants

  • Home >Companies >News >India’s $1 trillion digital loan market is next battleground for tech giants.
  • India’s digital loan market is becoming a battleground for companies from Facebook Inc. to Xiaomi Corp., as they seek a foothold in what’s set to be a $1 trillion industry.
  • The social media giant’s foray into India coincides with Xiaomi’s, the Chinese maker of everything from rice cookers to gaming monitors, plans to offer loans, credit cards and insurance products in partnership with some of the nation’s biggest banks and startup digital lenders, the Press Trust of India reported, citing local head Manu Jain.
[Via]

China’s “Peer To Peer Lending” crashes, taking many lives with it; RBI to regulate Indian platforms

The Reserve Bank Of India, in a gazette notification has identified peer-to-peer lending startups as a special category of NBFC (Non Banking Financial Companies) and it will regulate them.

So, now we expect the RBI to release the guidelines and also to award approvals/licenses to existing and new players.

Now that RBI has said that it is the sole regulatory authority of everything “p2p lending”, the ambiguity has been erased and it shall pave the way for entry of more players and also, the capital.

Peer to Peer online lending platforms connect lenders with borrowers with algorithms powered decision making ability, which can judge the credit worthiness and risk profile of the borrower. They are supposed to make a quick disbursal of loans also.

So, where the “financial inclusion” has been the buzzword for past 5 odd years, if not more, let us look at what has been the result of peer to peer lending industry, from where it has been picked up, essentially.

Yes, you guessed it right, China!

According to a Shanghai based research group, Yingcan, more than 400 peer-to-peer lending platforms have collapsed this year, only between June and August. Another 200 are expected to fall, well like, dominoes. That would still leave, 1800 of them.

P2P lending attracted 50 million people in China with the lure of interest rates of 10 percent and more and total investment outstanding has gone past $200 billion.

Many P2P lending platforms operated as Ponzi scheme, requiring cash inflows to pay out, what is called in Hindi language, “Iski topi, uskey sir”. And this despite of the fact that, companies like PPMiao, were state backed.

People have lost everything against the promise, some could not bear, and decided to end everything, along with their suffering.

Lets hope we learn from this and not fall to the greed!

MobiKwik launches ‘Boost’: Offers instant loan within 90 seconds

Instant loan within the wallet app.

MobiKwik has launched ‘Boost’ product, which offers instant loan approval and disbursal to MobiKwik users.

Loans of upto Rs. 60,000 are sanctioned as well as disbursed in a matter of 90 seconds. MobiKwik has partnered with a number of NBFCs to offer this service to its users. MobiKwik is the first wallet player to disburse loan amount in the user’s mobile wallet.

‘Boost’ offers loans without any hassles of submission of paperwork or collaterals. The loan sanction decision will be taken in 30 seconds, on the basis of an innovative risk scoring model called ‘Mobiscore’, developed by MobiKwik.

AI @Work? The real time underwriting has been possible only because of artificial intelligence and data analytics capabilities used in the entire loan journey.

Users can apply for loans ranging from Rs. 5,000 upto Rs 60,000 through MobiKwik app.

Lending money is the new Grocery startups : The impending and looming crisis ahead #CambodiaLessons

Everyone loves money.

Everyone loves easy money.

Everyone loves easy money, when paying back is not a tough option.

There has been a mushrooming of startups offering to lend money to each and everyone, there have been startups who are ready to lend to small business, some to medium business, and majority of them are willing to lend to one type of customer, “Greedy”.

With some or other sale going on online shops, the intense peer pressure created by Facebook group of companies; and the stress to fill the hollowness within, with objects and things, to show off to people who don’t even matter; is forcing people go way beyond their means.

A recent article suggested how even vacations and travel are now being piggy backed on borrowed money.

Its never been merrier for the greedy.

And then come these startups. The best part of lending is that, no one lends with their own money, except the loan sharks. They all ride on someone else’s horses and these new lending startups ride on the VC money.

With no prior history/study of how a customer might act/react for such types of lending (private/non-bank FI), they are willing to experiment on VC’s money. And obviously VCs are willing to experiment on someone else’s money. And this goes on…

What happens when everyone wants to lend?

In Cambodia more than 10% of borrowers are unable to pay back their loans for mobiles/gadgets and such. Sounds familiar?

The average loan size in Cambodia is now among the highest in the world, growing from $200 to $1,000 in the decade to 2014 — twice the pace of per-capita income.

While incomes have risen in the past 10 years, an economic decline could create an unsustainable environment while people are losing their jobs.  (via)

Yes it is, after all, almost every startup model is copy-pasted from SV,China or from wherever it may come from.

And best part, and probably most dangerous, these companies obviously don’t want to leave their customer, they would keep on offering, making them habitual, just like an opium seller.

You don’t need it, but you can’t rest, until you have it.

Soon, a Cambodia type crisis is going to loom here.

Achtung, baby!