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

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.

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Printable version | May 12, 2021 6:23:17 AM | https://www.thehindu.com/news/cities/Hyderabad/fintech-start-up-aims-to-disburse-50cr-loan/article28494189.ece

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