To offer instant app-based personal loans to underserved consumers in India The partnership is in line with the government’s broader goal of financial inclusion
PayU India has partnered with Reliance Money, one of the leading NBFC brands in India and a part of Reliance capital to offer instant app based personal loans, via LazyPay, for the underserved consumers in India. The credit market in India is extremely underserved with about Rs 15 crore potential borrowers. This new offering taps into the growing marketing opportunity thereby enabling the consumers an access to instant digital personal loans. The entire process is completely digital, saving customers the hassle and the delays usually associated with a loan approval process.
The loan amount will start from as low as Rs 100 and will extend up to Rs 1,00,000 and the duration could vary from 15 days to 24 months, depending on the creditworthiness of the individual. This line of credit will be availed via LazyPay on Citrus App. With this partnership, Reliance Money, the NBFC partner, will extend instant digital personal loans to both, salaried and non-salaried individuals with repayment linked to their bank accounts.
Reliance Money would carry out its one-step due diligence of checking the creditworthiness of the customers, which will substantially bring down the ‘time to check’ and improve the turnaround time of the credit flow to the KYC-enabled customer. As a measure to keep delinquencies under check, the company is seeking direct debit facility on the customer’s account for loan repayment.
Elaborating about the tie-up, Devang Mody, Executive Director and CEO of Reliance Money, said “The tie-up helps Reliance Money to move ahead in its financial inclusion effort of “go-retail” by reaching out to underserved customers with innovative financial solutions. The customers stand to gain by getting instant credit through a paperless process as an added facility with the benefit of flexible tenure ranging from 15 days to 24 months to ensure they don’t miss an opportunity – be it a great shopping deal or a business opportunity.” He adds, “Any increase in PayU India’s client base will directly and positively impact our bottom-line.”
Extending the credit facility to larger ticket size, Jitendra Gupta, Managing Director of PayU said: “We are delighted to partner with Reliance Money, country’s renowned NBFC brand, to offer a credit line to the underserved consumers in India. We have realized that there is an unfilled gap in the market catering to borrowers seeking instant cash loans. PayU’s vision is to bridge the credit gap in India and enable easy access to instant needs. Through this partnership we aim to offer credit beyond traditional means and enable hassle-free access to credit to address the growing needs of consumers.”
To begin with, this facility will be available to consumers in top 10 cities, including metro cities and tier-II cities like Ahmedabad, Jaipur, Hyderabad, Bangalore, Chandigarh, Lucknow. The facility will be extended to 110 locations by the end of third quarter of the current year.
As of March 31, 2018, the outstanding loan book was Rs 13,674 crore (US$ 2.1 billion) – a YoY increase of 10%. This loan book is spread across 51,400 customers from top 39 Indian cities.