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Business Standard hits USD 1 Bn annualized loan disbursal run-rate

ANI  |  New Delhi [India] 

India's largest marketplace for announced today that it has become the country's first independent digital platform to reach an annualized loan disbursal rate of USD 1 billion.

Since its inception in February 2014, has witnessed 150X growth and is the clear marketplace leader for lending products, according to industry estimates.

Unsecured loans, which include personal and loans, form the majority share of the disbursals taking place through the Paisabazaar platform. Currently, disburses ~Rs. 480 crore of unsecured every month, with a dominant share of these going to salaried prime customers, who have an in-hand monthly income of over Rs. 25,000 and score more than 750.

"The milestone of reaching USD 1 billion run-rate is significant because it shows the size of the Indian lending market. If one looks at unsecured loans alone, even at such high volumes that Paisabazaar is doing, we are only 2% of the unsecured lending market. Over the next 3-4 years, our aim is to reach 10% of this market," said Naveen Kukreja, & Co-founder,

In terms of age distribution, 66% borrowers on the Paisabazaar platform were 35 or below years of age, signifying a young customer base which is choosing digital to get access to partners with more than 90 banks and financial institutions, which include India's biggest public and private banks, NBFCs, and mutual fund companies, to offer more than 300 products that cater to all personal needs of its consumers.

"We congratulate on achieving this milestone in such a short time. This collaboration has allowed YES to provide better services to the customers and ensured faster and simpler lending opportunities via The looks forward to many such achievements through this partnership," said Rajan Pental, President and Group Head, and Retail Banking, YES

Growth fueled by Mobile & consumer demand from Tier II and III cities

Currently, receives more than 2 million product enquiries every month from over 1100 cities and towns across According to, one of the biggest reasons behind its growth is its success in establishing itself as a consumer brand, across India, which can be attributed to its continuous efforts in spreading awareness around financial products, through TV and digital over the last 4 years.

The popularity of the has also been a game-changer for digital platforms, with more and more incremental traffic coming from smaller cities and towns through mobile. today gets ~86% of its 23 million+ monthly traffic through mobile, as compared to 59% in April, 2017. has also witnessed a big surge in demand for products from Tier II and III cities, signifying the increase in popularity of the digital channels in accessing credit in the smaller cities. Loans from outside the Top 10* cities today contribute ~41% of the total disbursals through Two years ago, only 18% of the loans were disbursed to locations outside the Top 10 cities.

Focus areas in 2019

1. Lending to the MSME sector: One of its key focus segments in 2019 for will also be the self-employed, that has steadily shifted to digital channels for its credit needs due to the ease in processes. It currently works with over 25 banks and financial institutions to facilitate easy access to credit to the MSME sector through digital innovations.

", has been a great enabler in providing to the massive self-employed segment in We congratulate on this big milestone and look forward to working with them more closely this year to further ease the access to credit for the MSME sector. We hope, together, we will continue to empower the MSME community of our country and make available to them at their fingertips," said Harshvardhan Lunia, & Co-founder,

2. Customized lending solutions: has been focusing on bringing in industry first innovations, through data and technology, to simplify lending for partners and customers on its platform. Last year, it launched India's first 'Chance of Approval' feature, where each customer, applying for a loan or a credit card on the platform, is shown his chances of approval against each available product. has used 4 years of data to create this advanced It has already led to an increase of 21% in the approval rates for lending products on the Paisabazaar platform in 5 months. is also working with multiple lending partners to simplify the lending process, making it more digital, seamless and faster for the consumer. This year the focus will be on building to each borrower visiting its platform.

"Our partnership with has enabled us to provide quick, easy and seamless access to loans to varied customer segments on the Paisabazaar platform, through industry-first innovations, backed by deep analytics and cutting edge One of them is our pre-approved personal loan offer to customers on the Paisabazaar platform, with no income documents required, which provides almost instant access to credit with minimum effort," said Bhavesh Gupta, CEO,

3. Innovating on Free Credit Score: runs India's biggest credit awareness initiative by offering customers their free credit report with monthly updates for life from multiple credit bureaus, like and Last year, made the available on multiple new platforms through multiple partnerships and integrations.

Today, a customer can find out his in less than 2 minutes from Paisabazaar through his mobile, an AI-enabled chatbot, and Alexa. He can then track his score seamlessly, as he is provided his monthly credit report on WhatsApp.

"We are trying to create an entire ecosystem around our product, using AI and other technologies, to help customers get access to the best and most-suited financial products," said

4. Affordable housing: Paisabazaar has also been an enabler in providing the most suited home loan deals to customers from varied income segments. Along with sourcing the some of the biggest for HNIs, including a Rs. 6.12 crore loan in May last year, it has also facilitated housing loans to customers from through exclusive affordable housing loan partnerships with IIFL, YES Bank, Cholamandalam etc. says, this year, it will have special focus on technology and data, along with strengthening its partnerships across the financial ecosystem to make personal decisions more convenient for customers. It is already working with on several industry-first innovations.

"As a market leader, we want to provide our consumers an international experience on We are benchmarking against the highest global standards to deliver a consumer experience, that's so far unprecedented in India," said

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, January 14 2019. 18:16 IST