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- The Lending Industry is projected to be growing at CGP of 25% YOY: Binit Kumar
The capital lending industry has witnessed robust growth in the last five years. The lending industry has grown a long way from merely offering personal loan, home loans to travel loans, microloans etc. Moreover, with more and more entrepreneurs and startups in the country, the lending industry is seeing an upsurge.
India has a diversified financial sector undergoing rapid expansion, both in terms of strong growth of existing financial services firms and new entities entering the market. One such brand is MoneyLoji.com, a modern money lending platform that offers short-term personal loans to salaried individuals in India. MoneyLoJi.com is owned by Ganesh Leasfin Private Limited, RBI registered non-bank financial company (NBFC).
In conversation with Franchise India, Binit Kumar CEO, MoneyLoji, shares some valuable insights on the lending industry.
Scope in the Lending Industry
The lending industry is a market which keeps on growing. It is projected to be growing at CGP of 25% YOY.
“The market is huge and there is a potential for more players to come in and make a mark in the industry. The right product backed by the right approach needs to reach the right audience. Different TG needs to be catered with different needs and hence, there can never be a monopoly of a single player,” said, Kumar.
Major Trends in the industry
Technology is making the difference when it comes to lending business and it will keep on evolving. Going forward a lot of roles will be carried out by MI and AI.
Role of Technology
The lending business has seen a revolution with the regular updates in NSDL, NPCI and also by the RBI.
“It is relatively simpler and safer to run an online lending business with technical integrations from authorities to verify the user with KYC and also initiate e-mandates which are the only type of security provided by users in an unclassified industry,” stated, Kumar.
5 Tips to Start A Money Lending Business
- Maintain your default rate with a good collection system
- Start small, scale faster
- Have synergistic integration from third-party solutions
- Data analytics
- Don’t use short term funds for long term lending.
What’s your business model?
MoneyLoji, a modern money ending platform, offers Quickest and the most secure loans to salaried professionals for an immediate requirement like unexpected medical expenses, purchasing a new gadget or appliance, planning a short trip or a short-term education course, monthly rents or advancing someone urgent funds, hospital bills, or EMIs on personal loans, housing loans, and insurance policies with flexible repayment options starting from 7 days to a maximum of 90 days.
We follow a unique three-step process- Application, Approval, Disbursement which is carried out within 3-4 minutes.
Future Expansion Plans
We are currently looking at catering with our fullest potential to the segment that we belong to. We are also looking at a lot of other segments that are vacant for the lending industry to venture into. Our current target audience belongs in the group of salaried professionals and the future will be SME and self-employed. We will be having a specifically designed product for that particular segment of the audience, keeping our USPs intact. Also, the Fintech companies in the lending business are getting much more convenient and accessible than the traditional banking sector.