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Student centric lending start-up mPokket may opt for NBFC license

mPokket business model is similar to credit card lending but it focuses on a segment who are ineligible for that but requires instant loans

Press Trust of India  |  Kolkata 

Digital loans

City based platform is aiming 10-15 times growth in lending in the current fiscal and does not rule out becoming an in near future.

is currently a student centric lending platform with a maximum loan exposure of Rs 2,000 per student at any point, and is now planning to tap those who are fresh in their jobs.

"We are now lending around Rs 40 crore per month on an average, registering a growth of 15 times since last year. Our business will jump another 10-15 times in FY'20," founder & CEO Gaurav Jalan told PTI.

The fintech startup is planning to expand its lending portfolio by the end of third quarter of the current fiscal to early stage job holders and building technology to support it.

"We do not rule out seeking an license as money is our key raw material and lending base in growing strong. Currently we are working with a partner and negotiating with another to support our current lending," Jalan said.

mPokket business model is similar to credit card lending but it focuses on a segment who are ineligible for that but requires instant loans.

"We now want to expand lending to fresh job holders. The base of this segment is huge. The do not get hefty salaries and are not eligible for credit cards. We want to offer instant loan on the go to this segment," Jalan said.

mPokket loan is disbursed to clients instantly to either their bank or Paytm account and the entire process is executed on smartphones and takes just seconds to complete. But prior to that, a detailed KYC process is completed.

mPokket charges interest rate of 3 per cent a month and offers loans between Rs 500 and Rs 2000 for a maximum period of 3 months, he said.

"To support the next leg of growth, we need to build our technology more robust and a new team will help us in that direction," he said.

mPokket recently appointed Andy Sen as its Chief Technology Officer in Bangalore who has extensive leadership and international experience.

Jalan said the company has plans to raise capital and the process will begin soon.

It has received an early stage small funding of $50,000 from US based VC Village Capital through a contest-type selection process.

First Published: Sun, May 12 2019. 10:15 IST
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