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Small Ticket, Big Impact: Lending companies with innovative products

A report from Experian India and the Digital Lenders Association of India (DLAI) highlights the increasing dominance of fintechs in the small ticket loans segment. In FY18, fintechs accounted for 29 per cent of disbursements, a figure that surged to 51 per cent by FY24 (until September 2023). This trend underscores the growing significance of small ticket loans in the financial sector. These loans are pivotal for promoting financial inclusion, particularly for individuals and businesses overlooked by traditional banking institutions. Offering quick access to funds without extensive documentation or collateral, small ticket loans are ideal for addressing emergencies, funding business expansions, or making personal investments.

 

Essentially, leading companies such as RupeeRedee, Namdev Finvest, Buddy Loan, and Lentra are playing a pivotal role in fostering economic empowerment and driving socio-economic development through their small ticket loan offerings. They serve as a bridge between financial needs and resources, empowering borrowers to overcome immediate challenges and seize growth opportunities. Moreover, small ticket loans contribute to building creditworthiness and financial stability, facilitating access to larger financial products and services.

RupeeRedee

Incepted in 2018, RupeeRedee is a digital lending platform that allows consumers to fulfill their lending needs in simple steps with the help of technology. The app gives you the access to personal loans within a few minutes on your fingertips. It is a tech driven digital lending platform that leverages technology and data sciences to make lending accessible for India’s massive population of underserved customers. With robust KYC and smooth processes, it makes the consumer journey hassle free, quick and also safeguard your data. It currently has 4.51 million Installs on Google play Store and has an average traffic of 400K on its website. Operating with its own Captive NBFC FincFriends Private Limited in the background to facilitate short-term personal loans coupled with digital lending services and have deployed various forms of underwriting including alternate data sources and is not restricted to credit score-based underwriting only. Following the Fair Practice Code and compliance process it offers its consumer a great experience and satisfaction.

Namdev Finvest

Namdev Finvest Pvt Ltd is a leading NBFC dedicated to providing financial solutions to the MSME sector, enhancing their growth, income, and opportunities. Specialized in small ticket loans, providing convenient and accessible financial solutions to individuals and businesses. The company has expanded its services to include EV and solar loans, demonstrating a commitment to uplifting underprivileged communities. Since its establishment in 2013 by Jitendra Tanwar, Namdev Finvest has rapidly grown, establishing over 112 branches across northwest India and securing a net worth exceeding Rs 410 Crore. The company has garnered recognition for its secure MSME financing and two-wheeler lending, fostering a network of over 50,000 active customers. With a strong vision of excellence and innovation, Namdev Finvest has secured funding of USD 41.5 million, including a recent Pre-Series C funding of $19 million from Maj Invest, reinforcing its position as a trusted name in accessible financial assistance.

Buddy Loan

Buddy Loan is India’s fastest-growing loan aggregator, dedicated to providing comprehensive credit solutions. With over 5 million users, they have established partnerships with 25+ leading banks and NBFCs, simplifying the personal loan process and fostering credit-building opportunities. The platform’s extensive application caters to ambition-driven individuals, offering eligibility report-generating tools to streamline the personal loan application process and guide users towards financial stability. Buddy Loan is committed to meeting all of its customers’ credit needs, offering small ticket loans that provide convenient and accessible financial solutions for individuals and businesses alike.

Lentra

Founded in 2019, Lentra is revolutionizing digital lending by empowering banks and NBFCs with its SaaS platform. Lentra provides small ticket loans, offering convenient and accessible financial solutions to individuals and businesses seeking quick and hassle-free borrowing options. Lentra’s platform enables financial institutions to create custom loan products and enhance customer experiences through its API-driven modular architecture. Currently, its digital lending platform serves over 50 banks, processing over $20 billion worth of loan applications, with 2 million loans processed every month. They support customers in expanding their reach, reducing non-performing assets, and optimizing operational efficiencies. With a Pay-as-you-go pricing model, Lentra ensures its customers’ growth while being backed by investors like BVP, Citi, HDFC, MUFG, SIG, and Vy.