Gurugram-based digital financial services startup MobiKwik is offering instant loan approval and disbursal to its users through a new product called “Boost”.
Users can avail loans ranging from ₹5,000 to ₹60,000 approved and disbursed in a matter of 90 seconds, without any collateral or paperwork. MobiKwik uses an innovative risk scoring model called “Mobiscore”, to decide upon the loan amount that can be availed by users based on the data sourced from their Aadhaar and PAN cards.
The loan amount will be credited straight into user MobiKwik wallet, which can be transferred to their bank accounts when required. The digital wallet has partnered with a number of NBFCs to offer a hassle-free loan to its users.
The loan credited in the wallet can be used for a number of purposes including urgent purchases, marriage expenses, travel expenses, hotel bookings, and medical emergencies, through online and offline channels.
Upasana Taku, co-founder and director, MobiKwik said, “Our objective is to provide easy access to credit to each and every Indian, irrespective of his location. In the initial months of piloting the offering, we have already crossed 100 thousand loan providers. We will be rolling out new products in the lending portfolio so as to cater to diverse credit requirements of customers.”
Earlier in July 2018, MobiKwik had ventured into the online lending space, offering instant loans up to ₹5,000. It was offered in partnership with Bajaj Finserv, with a repayment period of 3 months, without any interest rate. However, there was an upfront fee of ₹349 at the time of applying for the loan.
Other players in the instant credit lending space competing with MobiKwik include EarlySalary, InstaPaisa, MoneyTap, Olly Credit, Lendingkart, LenDenClub, and PaySense, among many others.
Indian digital lending space is bustling with startups trying to penetrate the Indian users that are not eligible to avail loans through traditional banking institutions. These startups will not only help in financial inclusion but also help many households manage their expenses efficiently.