In a development which heralds a massive disruption in the unsecured personal lending space,Qbera, a fintech start-up offering quick and hassle-free personal loans, has launched its operations in Bengaluru.
The digital platform allows consumers to avail loans and provides instant approval to borrowers, committing loan disbursal in as little as 24 hours.Qbera has entered the unsecured personal loan market in association with RBL Bank.
Launched with the primary objective of addressing the hugely underserved segment as well as growing market-need for quick and convenient delivery of personal finance services, Qbera uses proprietary risk-management models to assess the creditworthiness of applicants, including those who are new-to-credit.Unlike traditional banks and NBFCs that focus on lending to employees of a handful of target companies,the platform offers personal loans to salaried employees of more than 7 lakh companies. More than 6,50,000 of these employers are not listed in banks’ target lists, rendering their employees relatively ineligible for personal loans at traditional banks and NBFCs.
Qbera Founder and CEO Aditya Kumar said, “The challenges faced by salaried individuals in availing unsecured personal loans are highly unwarranted. Borrowers not only face an arduous process and long approval and disbursal time, but their loan applicationsare often rejected on arbitrary grounds, such as if their employers are not listed with the bank, or if they live in shared accommodation. With this partnership with RBL Bank, we intend to include segments which have been excluded from unsecured lending by a majority of the existing players, while providing all our customers a transparent and seamless experience.We are very enthusiastic about the response we have received so far, and plan to launch our operations across the country to serve prospective borrowers through our unique platform.”
A product of Creditexchange, Qbera has received over 5,000 personal loan applications since its launch in February 2017. This is largely thanks to its focus on leveraging state-of-the-art technology to complete tasks such as credit scoring, residential verification, employer verification and income verification digitally. Borrowers can avail personal loans ranging between Rs 50,000 and Rs 5 lakh without the need of posting any collateral, for a period of 1 to 3 years. Interest rates start from 13.99%, translating to an EMI of Rs 3,418 per lakh. Disbursal of the loan follows in as little as 24 hours of offer acceptance by the customer.
The approval process, for a majority of customers, is completely online and allows borrowers to get hard offers on loan applications instantly.The platform analyses data extracted from a wide range of sources to generate customised loan offers for each applicant. This also allows Qbera to provide loans to individuals earning more than Rs 20,000 per month, working for companies which aren’t listed in the banks’ target lists, and people who are new to credit, in addition to those who live in PGs or bachelor accommodations.
Harjeet Toor, Business Head – Retail and Small Business Lending, Credit Cards and Financial Inclusion, RBL Bank,added“Retail banking in India is going through a rapid transformation due to the sharp thrust on financial inclusivity and digital technology. This has resulted in a dynamic change in consumer behaviour which is creating exciting opportunities across the banking spectrum. RBL Bank is delighted to be a part of this dramatic shift and is introducing disruptive innovations with the potential to drive scale and increase customer value. In this context, our strategic collaboration with Qbera will enable us to offer a range of specialised banking services, including personal loans, to underserved consumers.”
Qbera has formed a strategic technology partnership with LendFoundry, a platform used by large online marketplace lenders in North America, to create and develop an end-to-end platform customised for the Indian market.
Qbera’s expansion plans include the launch of operations in Chennai, Hyderabad, Mumbai and Delhi/NCR by April. The platform is aiming to expand its presence to 13 cities across India, including Kolkata, Cochin, Ahmedabad, Coimbatore, and Pune, by December 2017.