Loan disbursements to borrowers from Tier-3 cities have tripled in the past financial year
Faircent, India’s largest NBFC-P2P, has steadily expanded its reach across Tier-2 and Tier-3 cities of the country. According to the latest figures from the platform, loan disbursements to borrowers from Tier-3 cities have tripled since the past financial year on Faircent, while the number of loan recipients from Tier-2 cities has nearly doubled during the same period. Currently, 32% of loan disbursements on the platform are to borrowers from Tier-3 cities and 42% to borrowers from Tier-2 cities.
• 87,000 registered lenders on online P2P lending platform
India is primarily a cash-driven economy. 73% of India’s population still resides in rural or semi-urban areas where most small businesses and individuals maintain poor financial and credit records, making it tough for them to get loans from traditional banks and financial institutions. Either these institutions are not physically present in these locations or use legacy credit evaluation methodology that is unable to optimally evaluate the credit-worth of these individuals and small businesses. As a result, these segments depend largely on unorganized money lenders – known for their exploitative practices – to meet their credit requirements.
Faircent, as India’s largest NBFC-P2P, with market share of more than 60% is positioned to help bridge the credit gap by facilitating quick and affordable loans to creditworthy borrowers in Tier-2 and 3 cities. The platform facilitates swift, efficient, and seamless borrowing and lending of funds through its online platform for both individual borrowers as well as SMEs. Tools like automation and analytics drive its alternative risk assessment model that uses new-age data thereby enabling many credit-worthy borrowers, otherwise ignored, to register on the platform and come within the purview of organized credit.
Vinay Mathews, Founder & COO, Faircent, commented, “We have seen a multi-fold growth in the past year, both in terms of the value of transactions carried out as well as the demand for our products. We have expanded to 450+ cities across India and plan to double this number by next year. As is evident from the latest disbursement figures from the platform, our efforts towards facilitating financial inclusion by building our presence in Tier-2 and Tier-3 cities where a large population of India’s underbanked population resides, has truly paid off, with the number of borrowers from these locations more than doubling in the past year. Also, our latest Research & Analytics report shows that borrowers from these cities are making timely repayments.”
The number of registered borrowers and lenders on Faircent.com has a grown at a rate of more than 200% year-on-year. There are currently 5.5 lakh registered borrowers and 87,000 registered lenders on the online P2P lending platform, which has disbursed more than INR 55+ crore worth of loans so far. Over the past five years, the company has consistently delivered on its promise of facilitating financial inclusion for the masses through robust business practices and policies, while leveraging its tech-driven solutions to scale its operations across the country.