Fintech startup Shubh Loans strengthens its distribution advantage by tying up with 400 SMEs

The current credit system, with its severe drawbacks, is keeping millions of loan seekers from getting their applications approved. Shubh Loans, one of India’s leading mobile money lending startup was founded to address this gap. Ever since its inception, the company has continuously made efforts to reach out to as many needy people as possible through its robust distribution network. The company lends loan amount of upto INR 5 Lacs to the Next Billion users and has built a distribution advantage by tying up with 400 SMEs across the country. The current coverage potential is almost 70 Lac employees. The company has set it as an important goal to target the SME cluster and owing to the same, it has expanded its services in 4 new tier 2 cities - Rajkot, Rudrapur, Panchkula, and Sholapur.

“We are building a distribution and risk advantage over others coupled with a unique credit scoring layer. We see ourselves as data whisperers and our philosophy is that no single piece of data is definite but is a piece in a mosaic“, commented Monish Anand, Founder and CEO, Shubh Loans.

Shubh Loans’ existing portfolio comprises of almost 40% as NTC (new-to-credit) segment. The company believes that in the age of digitization and affordable access to mobile data, the previously ignored and neglected segments now have the right and a fair chance to access credit facilities. Shubh Loans has drawn upon the best data science and risk resources in the world to build a unique proprietary credit scoring model.

About Shubh Loans:

Based out of Bangalore, Shubh Loans is a vernacular app that is helping a growing number of salaried employees (starting from 12K) in getting a loan of upto 5 Lacs with a long term (upto 4 years) EMI tenure. The smart credit model deviates from the traditional model (where the individual's repayment capacity is the sole criteria) and replaces it with the Shubh Loans credit model (which analyzes repayment capacity of and intention-to-pay by the individual).

In 2018, Shubh Loans raised $4.2 million as Series A led by venture capital firm Saama Capital with the participation of pre-series A investors—SRI Capital, Beenext and Pravega Ventures. Prior to this, the fintech startup had raised $1.6 million in September 2017 and raised an undisclosed amount of angel funding from Sanjai Vohra (former MD of JP Morgan), V. Bunty Bohra (Managing Director and India CEO of Goldman Sachs) and Peeyush Misra (Ex-Partner and MD at Goldman Sachs).