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Running away from farm distress in his hometown Kathiyar, in Bihar, Mohammad Hussain, 26, never thought his dream would come true in Mumbai, a city that never sleeps.
With the help of a friend, he got a job with Cashcow, an online fintech company for a monthly salary of ₹12,000. Six months back, Hussain quit his job and started his own business of referring people looking for loans to Cashcow, the app-based market place for bank products. In a month he arranges ₹1-5 crore loans and earns between ₹80,000-1 lakh as commission.
Cashcow has lived up to its name, says Hussain, who is among the 5,000 registered lead generators and advisors, largely from small towns.
Cashcow gets a commission of 1 per cent on home loans, 1.5 per cent on mortgage loans, 3 per cent on personal loans, 3-5 per cent on MSME loans and ₹3,000-5,000 on credit cards. Of every ₹100 earned, Cashcow shares ₹30 with the lead generators and ₹40 with advisors, who ensure that the loan is processed with 50 registered banks and NBFCs.
While there are no specific qualifications for lead generators, advisors have to clear a pen-and-paper exam to prove their knowledge to sell financial products.
In the last 15 months, Cashcow has arranged loans worth ₹400 crore, and generated a revenue of ₹30 crore. Gaurav Goyal, Co-founder, Cashcow, told BusinessLine that the sustainability of this venture was first authenticated when top officials from the RBI and HDFC quit their jobs to join the company, and the confidence was further boosted when Rana Kapoor of YES Bank picked up a stake, despite Cashcow making it clear that the bank would not be favoured in getting business.
Self-employment
Impressed with its reach in small towns, the Maharashtra Government is close to signing Cashcow to promote self-employment in rural areas.
“We will soon sign an agreement with the Maharashtra Government to conduct free training under Skill India in small towns and take banking services to the doorsteps in the rural region,” he said. Cashcow has also started talks with SIDBI to find takers for the ₹10,000-crore Start Up India fund from rural areas.
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