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For app-based lender Shubh Loans, the target segment is the Next Billion (households with annual income between ₹1.4 lakh and ₹4.5 lakh), according to Monish Anand, its founder and CEO.
“Though this segment constitutes more than 50 per cent of India’s total household, only 8.3 per cent have access to formal loans. Apparently, most of them are new to credit, and traditional lenders are risk-averse. Such people find it difficult to access the formal credit route; they are our target segment,” he told BusinessLine .
Smartphone users
When asked about the awareness of such mobile lending apps, he said: “There is an exponential growth in the smartphone user base. Cisco estimates show that this base will grow to more than 829 million by 2022; with data plans becoming affordable, India’s per capita data consumption will touch 14 gigabytes (by 2022).
Loan seekers can avail amounts above ₹25,000 up to a maximum of ₹5 lakh, with the EMI tenure ranging between one and four years.
Anand said the business has registered a month-on-month growth of 10 per cent.
“Our loan disbursements will touch $25 million in 2019 fiscal.”
On expansion plans, he said: “We currently operate in 13 cities. We plan to launch our services in SME clusters in Tier 2 and Tier 3 cities. We expect to receive an NBFC licence by the end of this year.”
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