A reputed and well known ex-banker, Ashok Mittal has more than 20 years' experience in financial services business. He was CEO of commodities and currencies business at EMKAY Global and KARVY. He was CEO of agri finance company prior to acquiring this company.
"We have acquired this company by investing about Rs 2.5 crore (about US$ 390,000) in it and are in the process of increasing the capital to about Rs 7.0 crore (more than USD one million). The initial investment is contributed by boot strapping from friends and relatives" The company is operating under brand name of Prest Loans.
"Prest" means 'to stands for' or Ready or Prepared; it also means advance of money or loan. The word was highly used during 1810 but got lost gradually. We are reviving the word the way we aim is to revive the businesses and we stand for businesses. We are a new age FinTech NBFC, providing all kind of loans to support and encourage the businesses; these loans may be in form of Small or medium businesses, MSME units, E-commerce vendors or inventory funding etc.
The company has developed high-end algorithm, it does not depend on financial information (like ITR, Bank statement etc.) but gathers information from alternate data and arrives at the amount, tenure and rate of interest etc. based on thorough analysis of alternate data. The decision about approval of loan is taken within minutes and post verification the loan is disbursed maximum within three days.
Mittal further says, "Our target clients are micro and small businessmen who are not able to have proper record of transactions, have less banking transactions and may not even be filing ITR like some grocery store in a small area, paan wala, kulcha chhole wala, juice or falooda wala, sweet shop, leather items trader or manufacturer in local area, mobile or computer repair shopkeeper, likes of small traders and manufacturers in old Delhi area or in sub-urban area. These people don't get loans from banks or other financial institutions due to lack of evidence of financial documents despite of having good turnover and profit margins. They are forced to borrow from local money lenders at three percent to five percent per month.
Our interest rate is based on our internal scoring system - where lot of weightage is given to their personal, social and family back ground - the non-financial aspects along with the business data analysed by credit team."
We have aggressive expansion plans and shall open offices in other parts of Delhi, Rajasthan and Haryana to begin with. We aim to disburse loans of worth Rs. 100 crore within three years to small businesses and MSEM units. Our aim is to promote and support entrepreneurship in India which will in turn support the government initiatives of Make in India and Skill India."
Kind of Loans Prest Loans Offers:
-Short Term or Long Term Loans, with or without collateral security, to new and existing businesses, including:
-Micro, Small or Medium Enterprise (MSME unit) in any kind of business
-Small or Medium size business or manufacturing units
-Supplier of goods or services who need invoice funding
-An Agri trader or Processor; Importer or Exporter
The Loan tenure is flexible based on the business needs and cash flow analysis.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)