Page 46 - Banking Finance February 2018

INTERVIEW

instance, we do purchase financing products essentially. product if someone's business is growing rapidly, my ability to
Now, that requires us to understand the cash flow cycle of recognize that in real time and be able to enhance the limit.
the particular business. With our expertise of going deep
into the segments, we are able to identify specific need, What are the criteria Indifi look for while
design an appropriate product both from a customer
providing debt financing to SMEs? Can you
standpoint as well as from credit quality standpoint. So when
please mention the range of ticket size of the
we are going to hotels, we know that they look for
innovation. That cycle is a six months cycle so we do 6-12 debt financing they provide?

months EMI based loans. If we are doing the purchase loan, At Indifi, loans are structured for small businesses, with
we can restrict the end use of funds to make sure that this range starting from INR 50 thousand going up to 50 lacs.
go where it is supposed to go. Now these are the parameters At Indifi, we have disbursed over 2500 loans with average
ticket size of 5 lacs. We have tailored loans
“ Today, we collect all the documents digitally. In for SMEs across Travel, Hotel, e-
normal course, customer has to go to the bank, take Commerce, Restaurant, Trading, Retail,
and Used Car Dealership businesses.
the bank statement and get it stamped by the
authorities concerned and submit it to the lender. “ Criteria looked at while processing loans
are-
which really start to define the product. The EMI loans, OD Y Business stability through the operation age
loans are constructs, they are not products. Y Business cash flow using traditional as well as alternate
data such as transaction with anchors Digital payments
What are the advantages of choosing tech- etc.
enabled Debt Financing over traditional ones? Y Credit history to filter out distressed businesses as
The first advantage is borrower facing. It can enhance collection effort is disproportional. At Indifi, new to
borrower experience significantly. Borrower experience credit customers also get a fair chance to get a loan.
stands for the convenience of the process. Today, we collect
all the documents digitally. In normal course, customer has When we say fintech, where do Indifi
to go to the bank, take the bank statement and get it
Technologies stand out in terms of leveraging
stamped by the authorities concerned and submit it to the
lender. Now, where does the technology comes in? It is in tech to provide debt financing?
making sure that these electronic statements being The leveraging of alternate data and using it to build a
submitted to us are genuine. proprietary algorithm to make credit decisions is one key

Secondly, when we are getting these statements, we also focus area. The unique ways we are leveraging today opens
analyze them automatically. So what used to take four hours up possibility to add layers on top of credit bureau scoring.
for is now done automatically because of technology. If we Our assisted product offering is digital and this gives us the
can move these applications faster, then customer can get leverage to provide loans across 150 locations with a small
loans quickly. As an instance, our turnaround time is five days team of 20-25 sales personnel. We are building on top of
ranging from expression of interest to
“ Our assisted product offering is digital and this gives us
sanction.
Whereas in a conventional lending the leverage to provide loans across 150 locations with
setting, it can be few days and in case
a small team of 20-25 sales personnel. We are building
of banks it can be a couple of months.
Third in borrower experience is the on top of India stack thus ready to scale and integrate
product itself, being able to deliver the with technologies of the future.
“

46 | 2018 | FEBRUARY | BANKING FINANCE

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