Finzy achieves zero defaults in the first year of operations
The company does not have any defaults on loans disbursed in its one year of operations from June 2017 to May 2018. This has been achieved despite maintaining more than 20% month on month growth rate in loan disbursals.
Around42% lenders have re-invested in theplatform during this period after securing healthy returns and a hassle freeuser experience. Some of the active lenders are making investments every monthwithin Rs 10 lakh cap set by RBI
Bengaluru,June 22, 2018: Finzy, India’s leading Peer to Peer (P2P) lending platform hassuccessfully completed one year of its operations with zero customer defaultsin its EMI repayments. The company doubled its loan disbursements in six monthsafter setting up its operations in June last year, due to a surge in demand forloans. Finzy has been able to provide its lenders with an average of 15.5%interest per annum on their investments. This has led to a strong interest fromexisting lenders and a significant 42% of the lenders have re-invested in theplatform which shows a trend of the growing confidence in the new assetclass.
Thecompany’s positioning in the market, ways of sourcing the customers and thescreening process undertaken by the platform are significant factors thathelped Finzy to ensure that there are nodefaults in the EMIs.
Speaking onthe achievement Mr. Amit More, Founder & CEO, Finzy said, “With regard toreturns, we ensure that we do not over promise, higher returns come with higherrisks, so we ensure we bring in the rightkind of borrowers on our platform. Our proprietary credit algorithm plays animportant role in screening borrowers. The algorithm checks for around 130parameters while screening the borrowers and only once they pass these quality checks do we list theloans on the platform. Our best in class credit underwriting standards arereflected in more than 81% rejection rate of loan applications on theplatform.”
Of theborrowers, 80% belong to the salaried class while the rest are self-employed.The average investment size of each lender portfolio in Finzy has increased by77% from September 2017 to May 2018.
“Aninvestor’s investment goes to an average of nine borrower loans which helpsdiversify and optimize risk for the lenders. We have a free registrationprocess, low interest rates, quick turnaround times, stringent screening andautomated EMI collections which are significant factors that are responsiblefor our successful operation in the last one year. We hope to continue servingour customers with the same passion and zeal”, said Mr. Vishwas Dixit,Co-Founder & CMO, Finzy.
In April2018, Finzy had raised USD 1.3 million in first round of Pre Series A frominvestors in the industry. The company has applied for an NBFC P2P license inNovember 2017 and is expecting the certificate of registration from RBI soon.