Fintech start-up EarlySalary.com, which facilitates short-term loans to salaried professionals, has expanded operations to Hyderabad.
A surge in the number of young working professionals and the city playing host to several technology companies are reasons for launching the operations here, said Akshay Mehrotra, co-founder and CEO of the Pune-based firm.
Stating that this is the sixth city across the country where EarlySalary.com is venturing into, he estimated the market for app based loans to be significant. “Hyderabad has the potential to feature in our top five markets,” he said in a release on Wednesday.
Around Rs. 5.50 crore has been disbursed to over 5,000 customers in Pune, Bengaluru, Chennai, Mumbai, and Delhi NCR through the lending platform since its inception in October last year. “Over the next one year, we intend to do give one lakh loans,” Mr. Mehrotra said in response to queries from The Hindu .
Noting that many young professionals who have just began their career “need a helping hand at the end of the month,” he said a mobile app based product like EarlySalary allowed them to instantly apply for and avail a short-term loan.
The loans are approved and disbursed by RBI-approved non-banking finance companies. The loan amount is from Rs. 10,000 to Rs. 1 lakh for a tenure of seven to 30 days.
The company combines credit bureau reports and social media details of the user for approving the loan. The interest rates range between 2-2.5 per cent/month and charged on a daily basis. The rates average Rs. 7 per day / Rs.10,000, the release said.
