Hyderabad start-up Fivifi India offers paperless credit-line

Start-up is self-funded, but it is looking to raise Rs 100 cr towards lending capital and operations

Hyderabad-based non-banking finance company (NBFC) start-up Fivifi India Finance Private Limited has announced the national launch of FlexSalary, an online virtual unsecured personal emergency line of credit to address short-term cash crunches of salaried individuals.

There is no product in India to address short-term cash crunch for few days, few weeks, fortnight or a month to meet daily expenses. With FlexSalary, people can borrow any amount ranging from Rs 2,000 up to a maximum of Rs 2 lakh even for a few days, according to Fivifi founders Anil Kumar Pinapala and Srinath Kompella.

The start-up is self-funded, though it is looking to raise Rs 100 crore towards lending capital and operations. Fivifi charges Rs 70 towards interest on a loan of Rs 10,000 for seven day period, according to the company.

"Consumers, especially millennials, are more comfortable using technology to find and sign up for quicker credit," says Patrick Kishore, chairman of the company. Earlier, Patrick served as the chief operating officer at Institute for Development and Research in Banking Technology (IDRBT).

The start-up has built an entirely paper-less lending platform. "FlexSalary is an open-ended line of credit, where borrower decided the loan tenure," says Srinath, co-founder and COO. The company uses machine-learning based credit decision model to determine the loan eligibility of a customer.