Financial technology platform Shubh Loans clocks 50% growth

Bengaluru-based Datasigns Technologies Pvt Ltd, which runs the financial technology platform Shubh Loans, has recorded 50 per cent growth in the number of loans in the September quarter of 2017 when compared with the previous quarter.

During the period under review, it built a loan book size of Rs 30 crore, serving about 8,000 customers with a negligible non-performing asset (NPA) of about one per cent.

Shubh Loans is a vernacular app helping a growing number of salaried employees (starting from those with Rs 12,000 monthly pay) in getting a loan of up to Rs 3 lakh with a long-term (up to 3 years) EMI tenure. The android app of Shubh Loans also saw over 100,000 downloads during the period.

With a presence in six cities – Delhi-NCR, Bengaluru, Hyderabad, Chennai, Mumbai and Ahmedabad, the company has partnered with 10 banks and NBFCs (non-banking financial companies), including DMI Finance, RBL Bank, Usha Financial, and others.

“The current credit system is not inclusive and does not cater to a large part of our population. Due to traditional and archaic ways of credit evaluation almost 400 million people are being excluded. The company, with its best-in-class technology, is helping financial institutions in making smarter credit decisions and expanding the availability of fair and transparent credit to the pool of underserved and unserved segments”, the company said.

“Shubh Loans app also has generated over 60,000 credit reports using its proprietary credit scoring technology. A recent feature includes an AI backed chatbot to enhance the overall customer experience. The app is available in vernacular languages and is available in English, Tamil and Kannada, with plans of launching Hindi, Telugu, Marathi and Gujarati versions as well. The organisation is also working towards its vision of creating financial awareness among the masses”, Monish Anand, founder & CEO of Shubh Loans said.

Shubh Loans has set its sight on bringing over one million people into the formal banking system as part of its mission 2020.

The fintech start-up has raised $1.6 million pre-series A funding from SRI Capital, Beenext and Pravega. Prior to this, the company had raised an undisclosed amount of angel funding from Sanjai Vohra (former managing director of JP Morgan), V Bunty Bohra (managing director and India CEO of Goldman Sachs) and Peeyush Misra (ex-partner and MD at Goldman Sachs).