Hyderabad

Fintech start-up aims to disburse ₹50cr. loan

CredRight offers loan to entrepreneurs not having access to organised credit

Fintech start-up CredRight, which extends unsecured loans to small entrepreneurs and businesses having little access to organised credit, aims to disburse loans totalling ₹50 crore this fiscal.

Started in 2016, the Hyderabad-based firm has, so far, lent ₹20 crore to around 400 units in the Telugu speaking States, Tamil Nadu and Maharashtra. It follows a system of assessing credit worthiness of prospective borrowers based on their chit fund subscription and track record.

Co-founder and CEO Neeraj Bansal, in a media interaction here on Tuesday, said that CredRight, which also extends unsecured loans to individuals, is focused on lending to entrepreneurs in the MSME (micro, small and medium enterprise) segment. The firm, he said, was able to build a better credit profile using chit repayment history of MSMEs and help them avail loan from ₹1-25 lakh. The average ticket size, he added, is ₹8 lakh.

Besides continuing with the model related to chit fund repayments, the company also wants to set up branches and increase the loan book. To this end, it has opened branches in Warangal and Karimnagar – it already has such a facility in Hyderabad – and planned to start operations soon in Guntur and Nellore.

“In the next 12 months, CredRight plans to reach out to more than 2,000 customers across Telangana and AP,” Mr. Bansal said, adding that the rate of interest on the loans extended by CredRight is 18% onwards.

The company also plans to invest more on technology and grow the head count from 25 to over 50 this fiscal. It had so far raised ₹10.5 crore venture capital and angel funds.

A letter from the Editor


Dear reader,

We have been keeping you up-to-date with information on the developments in India and the world that have a bearing on our health and wellbeing, our lives and livelihoods, during these difficult times. To enable wide dissemination of news that is in public interest, we have increased the number of articles that can be read free, and extended free trial periods. However, we have a request for those who can afford to subscribe: please do. As we fight disinformation and misinformation, and keep apace with the happenings, we need to commit greater resources to news gathering operations. We promise to deliver quality journalism that stays away from vested interest and political propaganda.

Support Quality Journalism
Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Jun 5, 2020 4:18:26 PM | https://www.thehindu.com/news/cities/Hyderabad/fintech-start-up-aims-to-disburse-50cr-loan/article28494189.ece

Next Story