Get finance as you hit the ‘order now’ button

KR Srivats New Delhi | Updated on January 20, 2018 Published on March 22, 2016

Start-up offers instant EMIs,sans paperwork

You can now convert your high-value online purchases into equated monthly instalments (EMIs) and that too without forking out interest on most occasions.

Promising a hassle-free loan approval process that is real-time with zero paper work is CashCare, a fintech start-up that has brought financing at the ‘checkout counter’ in several online platforms.

‘Freedom to buy now and pay on your terms’ is the tagline chosen by this fintech, which started its journey in mid-2014.

“Our speciality is, we take a digital customer, do a real-time credit assessment and say whether the person is worth financing or not,” said Vikas Sekhri, Founder, CashCare, in a chat with BusinessLine.

All that a digital customer has to provide at the checkout counter is basic details such as name, mobile number, PAN number and date of birth.

CashCare, which started offering the product in February 2015, will then use big-data technologies and algorithms to make credit decisions.

At the back-end, this start-up has tied up with two non-banking finance companies to ensure customers get the best financing options.

“We work with e-commerce vendors (Shopclues is our biggest client).

“When you buy something over ₹10,000 in Shopclues, you get CashCare as a payment option. Then, we do the magic on the basic details provided by the customer.

“We use new-age data to get their shopping history, travel history, get the persona, which banks don’t do right now.”

Salaried employees

This micro-loans solution is expected to come in handy for salaried employees, who aspire to go in for big-ticket purchases in online platforms, but do not really have the surplus funds or the sufficient credit score to do so.

So far, over 5,000 applications for loans have come the way of this start-up. Approval rate of loans has been 30-40 per cent. Most of the banks want a salaried employee to furnish pay slips and have deposit accounts before they could be considered as an eligible borrower.

“We do deeper profiling of the customer than banks. We get 1,000 data points to evaluate the customer and we will be able to predict risk much better because we have access to much more data.”

As on date, CashCare has partnered with eight e-commerce vendors, including MakeMyTrip and FabFurnish.

“We have moved even beyond the consumer durable space. We are doing travel, furniture; we have also got into providing micro-lending for online education courses,” Sekhri said.

The maximum loan assistance provided by CashCare is ₹ 2 lakh per transaction, he added.

The fintech, which got seed funding last year, is now looking to scale up through expansion of retail partners and targeting larger e-commerce players.

Asked about the interest rate involved in such micro-lending, Sekhri said it could range 0-22 per cent. “Our terms are much better than those offered by credit cards.”

Published on March 22, 2016
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